There is a staggering number of small businesses nationwide that are at immediate or near-term risk of failure due to the shutdown of commerce in the effort to combat the spread of COVID-19.
Looking only at businesses with fewer than 250 employees, a recent Brookings Institution analysis estimated that 54 percent of businesses and 47.8 million jobs fall into those categories of immediate or near-term risk; 70 percent of those businesses are microbusinesses employing fewer than 10 employees.
These smaller businesses, along with their employees, are most vulnerable to the economic fallout of the new coronavirus because they typically lack more than a few weeks’ worths of cash reserves.
Some government programs help businesses start, grow and relocate to specific areas. In some ways, local, county and state governments compete with each other for jobs. They do this by offering start-up incentives and taking steps to create a “business-friendly” environment.
These steps include tax credits, worker training, free land, zoning changes, low-interest loans, infrastructure improvements, and help with fast-tracking licensing and permitting.
Government agencies such as the U.S. Small Business Administration provide loan guarantees to small businesses and encourage local banks to work with start-ups or established companies that want to expand.
Talk to your banker about state or federal loan programs that offer low-interest rates. If you are a woman, minority or operate a business in select industries, additional loan opportunities also may be available. Contact your state’s economic development office to learn if it has loan programs.
Small businesses should be given a real advantage in procurement. Procurement policies and processes must be clear, protective, and accessible to the small guys, not a maze that ends up helping only the big corporations.
Government agencies like Statistics Canada and the U.S. Census Bureau are invaluable resources for market researchers. If you’re looking for information about a new geographic market, household spending patterns, or a particular market segment, start with the free research available from these organizations.
Every city, province, or state has a small business office or economic development department. Staff, there can refer you to local business incubators, networking events, and financing programs. Often, these offices offer free business consulting services; they will also help you to navigate complex government regulations.
Governments purchase billions of dollars worth of goods and services every year: everything from construction materials to office supplies, food, and consulting services. Your small business may be exactly the new supplier your local government needs!
Before making a sales pitch, it’s a good idea to learn about government procurement practices – where upcoming tenders are posted, proposal requirements, and rules governing conflict of interest. The websites of your federal, provincial, state, or municipal governments will all have purchasing department links that provide this information for prospective vendors.
We have always emphasized the importance of having a good website for your company because it can act as your best tool for marketing and sales. A poorly designed website can repulse people from your business and can cause you to lose customers before you even have them. Get in touch with HyperEffects to work on creating, enhancing, and making the website of your company more user-friendly.