It’s April 27, 2020, which means businesses in Canada can now apply for the 75% wage subsidy. Also, plans have been announced today by the Premier of Ontario for the reopening of our province and its economy.
I’ve been imagining myself as a small business owner, particularly a restaurant or other business with high operating costs and low margins, and wondering what I would do to survive in these circumstances.
In the daily briefings, our government leaders empathize and share intentions of support programs, details to follow, which helps businesses and employers know that help is on its way and some idea of in what form.
It’s an imperfect and fluid situation, and our leaders are listening and responding in real time. Some owners are frustrated by the government, saying their aid initiatives are “too little, too late,” and they have to close. Some say it’s record time, given the massive amount of analysis, debate and coordination necessary, then processes and infrastructure that have to be put in place. It’s tricky to ensure aid is distributed as quickly as possible, with proper safeguards to avoid fraud or duplication, and databases linked for tracking and measurement purposes.
A few weeks ago, Christia Freeland referred to the manner of these rollouts as “speed over perfection” or something along those lines. That seems the best approach in this crisis.
We’re all figuring it out as we go.
Some businesses won’t make it. But what if you were an emerging business – instead of an established one, scrambling to stay afloat? What would you be doing?
You’d probably be doing some market and other research, building a business plan, a strategic and operating plan, making a business case for getting a loan or other financing, maybe recruiting, maybe contingency planning due to the remaining uncertainty caused by the pandemic.
You’d be trying to figure out what the “new normal” is going to look like. The “experience” of the products or services you provide may be vastly different. Can some of it be virtual or otherwise reinvented? Do you need to learn from or collaborate with new business partners? Do you need to hire or upgrade skills in your staff? How should you be evaluating and rewarding performance?
Social distancing may still be necessary or recommended for a long time. What impact will that have on your work area and service capacity? Should you be doing some re-tooling or remodeling? What kinds of testing may be available, and how will that be implemented? What other H&S measures should be implemented, for your staff and your customers?
You can be having these same thoughts and planning as an existing business. Give yourself and your team the permission to think differently, outside the box. We don’t even know what the box is anymore!
How can this setback be turned into a gift or opportunity? Maybe you were in a quiet location or had a difficult landlord. Maybe you can move to a more advantageous spot at a discounted price. Maybe you had a service or product line that wasn’t as profitable, and you were already considering a pivot in your business. What products and services can you offer that fulfill a need or want of your clients/customers? How can you create value now and going forward?
It may help to consider best and worst case scenarios, as well what if the status quo resumes. I actually did those three versions of strategic planning for myself a couple of weeks ago. It made me feel much better, more in control. Even the worst – barring contracting COVID 19 and not recovering – was not insurmountable.
So use this time. Don’t give up. Apply for government aid and other supports available to you*. Start to recall people from layoffs if you can. Keep your staff and customers engaged and involved. Determine what resources you need to keep the wheels on the bus, while visioning and planning for your next iteration.
Now is a great time to communicate, find out what others are doing in your industry and otherwise, get ideas, brainstorm, test, reinvent – maybe the best is yet to come.
If you are planning and potentially reinventing your business, and need assistance with the people aspects and processes that go along with that, feel free to contact me. I’d love to chat with you about it and help if I can.
*Current government assistance to small business owners include:
- (NEW) Canada Emergency Commercial Rent Assistance (CECRA) – forgivable loans to landlords to allow them reduce rent to small business owners
- Canada Emergency Business Account (CEBA) – $40,000 interest-free loan/line of credit, now available for $20,000to $1 million in payroll in 2019; Up to $10,000 forgiven
- Business Credit Availability Program (BCAP) – small business loans supported by EDC, BDC; apply through your financial institution
- Canada Emergency Wage Subsidy (CEWS – 75%) and 10% reduced payroll remittance
- Deferred payments for income tax, GST/HST, Import taxes, WSIB
For a full list of government support initiatives and how they work, refer to:
Canada’s COVID-19 Economic Response Plan: http://www.canada.ca/en/department-finance/economic-response-plan.html#businesses
Canadian Federation of Independent Business: http://www.cfib-fcei.ca/en