No matter the size of businesses, every business has been impacted by the coronavirus pandemic.
A study conducted by a business attorney at the law firm California Business Lawyer & Corporate Lawyer provided some valuable insights into which businesses were impacted by the shutdown and stay at home orders. The law firm, also known as Nakase Wade, has some of the best class action attorneys trusted by California businesses and corporations to defend against class action lawsuits.
Which Types of Small Businesses Are Affected?
Depending on the type of business, the impact of Covid-19 varied greatly. However, these three categories were impacted the most:
- Personal service
In general, the smaller the company, the harder it was hit. Companies with less than 20 employees were particularly impacted by the pandemic. These businesses were the first to reduce hours or lay off employees and stop hiring subcontractors. These companies will typically lack capital and cash flow to cushion them against these types of disasters. They had the biggest learning curve to adapt to the new situation and come up with ideas to offer service for their customers at home.
For hands-on businesses like spas, hair salons, dentists, medical offices, repairs, and home improvement, operations have been impossible. However, retail businesses have been able to adapt by offering their services via websites or Facebook pages so they can continue to sell their products.
The New Normal
Many small business owners have learnt new ways to do business, and some of these will stick around after the pandemic. Things like working from home, having a strong online presence, or app-based ordering may become a new normal. These things were necessities to allow some kind of business functionality in the shutdown, but they have saved costs and added new avenues for revenue.
Working From Home
Most businesses allowed employees to work from home so they could continue to keep their business going. Both employers and employees are finding that contrary to previous beliefs, it is possible to be productive at home. Employers will not need to spend as much on office space, and employees will save time and money on commutes and may even be able to move to more affordable cities.
Office space is a huge cost for employers, and being able to downsize or remove the need for an office altogether will be a fantastic way to cut costs.
The survey showed that many businesses thought upgrading business communications such as telecommunication equipment, computer hardware, and business software would be key. Another big area of improvement businesses wanted to focus on was having a strong online and social media presence. Many businesses were looking at hiring website developers and social media managers to assist them with their goals both during and after the pandemic. It is important for business owners to look at what they learnt from the pandemic and continue to build upon that.
The survey predicts that more employees will work from home at least a few days a week, and thus more money will be spent on home improvements. For home improvement and landscaping companies, they will see a boom when restrictions are lifted. There will also be a rise in new businesses as people who are laid off use the chance to follow a passion project.