The COVID-19 global pandemic has been like no other crisis in recent history. A typical natural disaster (flood, hurricane, fire, etc.) is precipitated by a single event, and the recovery and reopening process is relatively linear. While immensely difficult, the steps toward recovery are known. With COVID-19 recovery, businesses are reopening slowly as healthcare facilities are building their testing and treatment capacities. Consumer confidence in safety and the economy needs to be restored, and there is possibility that COVID cases will increase again, causing additional or new disruptions until the viral threat has been mitigated. As the business owner, planning for this sustained level of uncertainty can be overwhelming. This workbook provides you with the opportunity to reflect on the actions you have already taken in response to COVID-19 and walks you through best practices and a process to move forward.
In addition, the SBDC will also be offering, in partnership with WWBIC, a Workshop on September 25th titled Small Business Planning in a Time of COVID: Exploring the SBDC’s Practical Guidebook. This workshop will provide participants with the opportunity to learn more about how to use the handbook across a variety of needs.
Selected Resources and Best Practices
While no guide can provide a comprehensive look at all best practices, the selected resources provided here can help you learn more about select topics in the following areas:
- Financial Management
- Business Operations & Cybersecurity
- Products & Services
As you reflect on your early response to COVID-19 and consider what best practices you would like to implement or enhance, these resources can help you formulate your next steps.
Understand Key Accounting Terms
Understanding the language of accounting is essential for good conversations with service providers. Take time to review the 21 Accounting Terms all small business owners should know.
Understand Basic Cash Flow Management & How it Applies to Your Business
- Cash flow is a term that describes the way cash flows into and out of your business. The ability to predict your cash needs is essential. Cash on hand will give a business more flexibility in uncertain times.
- Looking for a basic cash flow tool to help you make projections for the next 12 months? Our SBDC colleague at UW Eau Claire has created a webinar and cash flow tool that can help you make more educated decisions.
- No-cost alternatives for Excel
- Looking to feel more confident in your financial knowledge? SBDC @ UW-Madison class, Building Financial Confidence in Your Businesses, can help you learn how to manage cash flow, read financial statements, and build your budget. This class will be offered in Spring 2021 (date TBD).
Hire an Accountant
An accountant is a key member of your team of advisers (in addition to an attorney, insurance agent, lender, etc.). It is essential to interview several accounting firms to find a good fit. Industry experience, cost, and scope of services are all aspects to consider in choosing an accountant. Review What the 5 most important questions to ask before hiring an Accountant.
Choose an Accounting Software
A key function in being able to understand your overall financial picture is the quality of your reports. Good reporting comes from accurate inputs and functional software. Having cloud-based software allows you to easily access information remotely. How to choose an Accounting software.
Understand Your Risk Tolerance and Decide When to Take on Financial Risk
Risk tolerance is an important factor in entrepreneurship; most entrepreneurs have a higher risk tolerance than the general public. There is no one-size-fits-all answer about how much financial risk (debt) you should take on; this is an individual decision based on a variety of factors. Even so, you will want to make educated decisions in collaboration with your stakeholders. If you are signing a contract in particular, this is a good time to involve your attorney.
Business Operations & Cybersecurity
Reduce Cybersecurity Risks
- How protected are you? Self-assess your business’ cybersecurity risks, and evaluate recommendations
- Protect your business from cyber attacks
- Government response to cyber attacks
Stay Updated on Current COVID-19 Health & Safety Regulations, Reopening Guidelines
- Centers for Disease Control (CDC)
- Occupational Safety and Health Administration (OSHA)
- Wisconsin Department of Heath Services COVID-19 cases by county
- Reopening guidelines by Industry, compiled by the Wisconsin Economic Development Corporation (WEDC). These guidelines were established in collaboration with industry experts
- Dane County Public Health has created a reopening self-assessment that can be completed anonymously. This resource is intended to help you establish your readiness to reopen and make improvements. While the self-assessment was created for Dane County, the information is applicable to any Wisconsin business
- Public Health Madison & Dane County has compiled a long list of resources (many by industry), including suggested guidelines and policy wording for your employee handbooks. This information was compiled for Dane County but is largely applicable across the State of Wisconsin
Explore Moving Products Online
- Main Street Marketplace online retail portal for Wisconsin businesses
- Edible Alpha Getting Your [Food] Products Online On-Demand Webinar (information relevant for businesses beyond food products)
Establish Alternate Suppliers
With international disruptions in the supply chain, many businesses are looking for suppliers closer to home. The Wisconsin Supplier Network can help you find a partner for a variety of products, including Personal Protective Equipment (PPE)
Hire a Lawyer
Evaluate Your Employee Needs
- While many businesses may currently be limiting hiring to save costs, that means that when hiring does take place, it needs to count. The first step in making an effective hire includes writing effective job descriptions.
- The Federal Work-Study program is a federally funded initiative that aims to bring employers and college students together to build impactful employment opportunities that benefit both the employer and student. In the past, this program has been reserved for on-campus and non-profit organizations, but has recently been expanded to small businesses in the surrounding Madison area. Benefits of and eligibility for the program:
- 75% of the wages earned by eligible students will be covered by the program, leaving only the remaining 25% to be paid by your business (until the student’s award amount has been met)
- Verify your eligibility for this program by completing the Federal Work-Study partner eligibility questionnaire. The process of becoming a FWS partner takes about 3-4 weeks, from the date the application is received to the final approval. If deemed eligible, you will be able to compensate UW-Madison student employees using funds provided by the FWS program.
Understand New Employment Laws
- The implementation of new, COVID-related employment laws has left employers with many compliance questions. This FAQ from the national SBDC can help you get started.
- For employees or customers who are not able to wear a mask, it is important to understand the interaction between masking requirements and the Americans with Disabilities Act.
- Learn more from the Department of Labor about Paid Leave under the Families First Coronavirus Response Act. This page also includes an employee tool (and employer tool coming soon) that helps determine FFCRA eligibility.
Create or Update Your Organizational Chart
By having an updated organizational chart, you have the ability to better acquaint new members to your team and to better clarify how different roles in your organization fit together. View a sample organizational chart here.
Update Your Employee Handbook & Policies
Functionally, your employee handbook serves as both your contract with your team and a resource to new employees as they seek to learn their role in the organization. If you do not currently have an employee handbook, you can view a few example employee handbooks here. If you do already have an employee handbook, it is likely that you will need to make updates to include additional information about COVID-19 safety protocols. The Dane County Public Health website has examples of how to:
- Create and adopt a hygiene policy
- Create and adopt a cleaning policy
- Create and adopt a protective measures policy
- Create and adopt a process for staff receipt, acknowledgement, or training on the policies
Understand Unemployment Options
- Unemployment FAQs for Employers from the Wisconsin Department of Workforce Development
- Definitions of furloughs, layoffs, etc. from the Society for Human Resource Management (SHRM)
Understand Information About Employee Rights
- General information about employee rights
- Mask mandates and the Americans with Disabilities Act
Customers & Marketing
Understand Your Target Market
Use the data from your business to identify demographic information about your customers. This can come from sales records, a Customer Relations Management (CRM) system, social media accounts, mailing lists, etc. What do you know about them for sure and what do you know about them anecdotally? When you wrote your initial business plan, you likely did research to understand the customer. Some of this research was through library sources like IBIS World, or through trade associations. You may have determined geographic location or market size via US Census data. You may have conducted other research via surveys or small focus groups. You sought to understand their needs, wants and what motivates them to purchase. It is necessary during this time of disruption to review this important information. In addition, you will need to understand how to build consumer confidence, the feeling consumers have about the current and future economic outlook.
Understand Customer Psychographics (Empathy Map by XPLANE)
An empathy map is a tool that business owners can use to better understand their customers’ psychographics, including needs, wants, and motivations. Likely, when you started your business, you created something similar to this; however, it is a good idea to revisit the process now that so much has changed for our customers as a part of the pandemic. This particular empathy map was created by XPLANE.
Establish Your Brand
Your business’ brand is one of the non-tangible assets you have available to you to leverage. That brand may have shifted during the pandemic, or it may have stayed the same. Either way, it is helpful to consider brand planning moving forward.
While you navigate crisis, a brand mantra can help your team establish focus and build motivation. This resource provides additional information about how to create a brand mantra.
Develop a Marketing/Communication Plan
Whether you are working with a marketing professional or doing the work yourself, it is helpful to understand the basics and key terms associated with customer acquisition, as explained in this “101” SBDC blog article.
Communication is always key with your customers, but it is especially important during a time of so much change and uncertainty. This sample marketing plan template from the Wyoming SBDC can help you make communication decisions.
Understand Consumer Confidence
- Morning Consult studies consumer confidence across the country. Their website will help you understand how consumer’s perceptions have changed nationally since January 2020; however, it is always more helpful to poll your local markets and customers.
- More locally, online surveys is one way to assess your customers’ consumer confidence level. Here are the six best online survey tools.
- The Wisconsin School of Business blog also shared more about what Evan Polman has learned through his research about consumer behavior during COVID-19.
Products & Services
Research Alternate Suppliers to Minimize Disruption Chances
Without reliable access to products from your supplier, your business could experience a partial or complete disruption. Edible Alpha has provided a few resources for food businesses – though the concepts and information are broadly applicable – about avoiding supply chain interruptions. These resources include:
- A recent article about Safeguarding Your Supply Chain against future upheaval
- A recent podcast Edible Alpha about reshaping the supply chain
Research your Industry
Trade associations are a great way to get industry specific outlook regarding the current status and future trends of your products. They often conduct research on behalf of members and do legislative advocacy.
Additional sources of information can be found at your local library. Companies like IBIS conduct research and create reports that outline key indicators of success and areas of concern. Participants in our SBDC courses have the opportunity to work with a librarian from the Wisconsin School of Business. If you are not participating in one of our courses, local card holders can use the online resources and receive support from a librarian who specializes in business and technology. Not a Madison Public Library cardholder? Many of these resources may also be available at your local Wisconsin library.
Complete a Competitive Analysis
When you started your business, you did a competitive analysis as to what made your product or service unique, especially compared to other similar businesses in your area. Because many businesses pivoted to different business models during the pandemic (online products or services, carry-out, kits, etc.), this is a good time to re-assess what your competitors have stopped or continued offering and re-evaluate what might be your best fit.
Managing during a crisis has some different characteristics than the more holistic leadership you can demonstrate the rest of the time.
- Leading or Managing in a crisis
- How to talk to your team when the Future is Uncertain
- Perfectionism can be a Liability, how will your leadership change during a crisis? How should it look moving forward?
- Psychology behind effective Crisis Leadership (Holding)
- Why empathy is one of the most overlooked skills in Business. As employees begin to return to work this summer or fall, they will likely have a lot on their minds. In addition to the collective global trauma of a global pandemic, individual employees may have additional or changed child care responsibilities, have lost family members to COVID-19 or not been able to attend important life events like weddings, graduations, and funerals. Because of all of these collective traumas, empathy will be more important than ever.
General Leadership Topics
Having a better understanding of your natural leadership and communication styles – as well as the styles of those around you – can give you a better sense of how to maximize your natural skills and make adjustments when working with an employee whose style is different than yours.
- The SBDC at UW-Madison offers a variety of leadership classes about leadership style, coaching communication, performance reviews, and more.
- There are a variety of leadership assessments (usually paid) that you can take to learn more about your leadership style and how you can better interact with teammates who have a different style than you. Find out the which 9 professional tools and tests that are the most common assessments.
- One of our biggest human motivators (consciously or not) is emotion. As a leader, developing emotional intelligence is key to being able to help your team thrive. The Six Seconds website includes several resources, including:
- Several Emotional Intelligence Inventories (paid)
- Regularly updated management videos on Emotional Intelligence livestream page, as well as many articles and other resources on their social media feeds:
- Assess your own leadership strengths and weaknesses in order to identify where you can improve. Leadership Assessment Tool
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