It is easy to feel overwhelmed and out of control during a crisis. It is wise to step back, take time to assess your situation, and create a plan of action for moving forward.
Here is a walkthrough of how a small business owner prepares for recovering from an unexpected disruption to operations.Access Our Full Library of Small Business Resources
Background: Good Earth Restaurant is a small restaurant offering sit-down and take out services, with a focus on selling nutritional entrées, They cater to both local residents and seasonal tourists. The owner, Jordan, has operated the business since it opened three years ago. He takes a modest salary and employs two individuals full-time. During the summer months, Good Earth Restaurant takes on one part-time employee.
What’s Happening: Business had been growing. Traffic and sales began declining at the end of March due to the stay-at-home mandate in response to the recent COVID-19 virus outbreak. The restaurant was forced to close its dine-in service on March 23rd.
To help address cash flow needs, Jordan applied for and received a $10,000 loan. The funds will be received in May. The loan is at 4% interest rate with a 36-month (3-year) repayment term. For the first 6 months, he will be able to make interest-only payments.
Jordan hopes to reopen in May. In preparation for what’s next, he is evaluating how to get his business back on track.
Decision: After reviewing his numbers and determining that the restaurant is still viable, Jordan decided to determine what new opportunities may be available to generate additional revenue during this time and beyond. He also decided to utilize this time to create a sanitation and operations plan for when their dining room reopens.
For now, Jordan and his employees will be offering virtual cooking classes and demonstrations for a fee, family-style carryout meals, and delivery within a 5-mile radius to boost engagement, income, and customer retention. Looking ahead, Good Earth Restaurant hopes to continue offering these additional services to customers.
Note: CEF’s advisors provide helpful suggestions of an educational nature that are not intended to mandate or supersede the business practices or decisions of your Company, its owners, or managers. The information provided in this guide does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available herein are for general informational purposes only. You should contact your attorney to understand your rights and for legal advice about your specific situation.
This information was created in partnership with Northern Initiatives and participating entities through Initiate Prosperity. Check out the full library of small business resources on the Initiate Prosperity: Powered by CEF site.