What has the COVID-19 pandemic taught us as business owners?
Since the onset of the COVID-19 pandemic, business owners have been plagued with
numerous challenges in the way they conduct their business. In this post, we will evaluate what this pandemic has taught business owners and why proactively adapting prior to the onset of future adversities may give you an advantage over others when it comes to protecting what you’ve worked so hard to build.
Evaluating your business model to account for recent changes in our economy will help
you to prepare for the times we are likely to face in the not-too-distant future. The uncertainty of the pandemic and ongoing changes in business regulations makes it difficult to conduct business as usual.
The COVID-19 pandemic created numerous issues for business owners as it pertains to their ability to excel within their business. Mask mandates, shutdowns and limited social interaction presented business owners with limited ability to conduct routine business. One thing that has been made very clear is that we need to make sure we hold ample amounts of reserves and create productive wealth outside of our business on the personal balance sheet as a contingency for the unforeseen events of the future. Leveraging outside sources of wealth during challenging times gives an individual the ability to support business operations while waiting for relief from PPP or
EIDL loans or until the hard times pass. Business owners learned the value of having higher reserves and an emergency plan to allow their businesses to continue to thrive in a struggling society.
As a business owner, managing daily operations and spending time with your family can
consume most of your time. You may not be able to keep up with the ongoing changes in tax laws, business structure and business model adaptation. Utilizing a certified tax and business specialist allows you to proactively minimize the damage from ongoing changes in regulations and tax implications. Proper business structure, proactive tax planning, and utilizing write-offs are just some of the ongoing strategies that can aid in turning the corner on a decline in productivity. Establishing additional, creative reserve strategies that maintain liquidity but eliminate taxation and enhance the return on your safe money will further bolster a contingency plan which will allow you to build wealth outside of your business and can give you an upper hand on excelling within a difficult
If the COVID-19 pandemic has taught us anything it is that there are a lot of things that are not within our control which can significantly impact our business’s ability to generate revenues and stay viable. Therefore, the lesson is that doing the same thing over and over is the definition of insanity. A contingency plan, the importance of building some wealth outside of the business, and truly understanding the value of your business are all important resources that must be utilized while adapting to the struggles this pandemic has created. All business owners need to keep ample reserves and question the smartest way to keep those reserves on a tax and return basis. By
working with our clients and implementing specific tax strategies and back-up plans it allowed them to cover their business expenses during this downfall in the economy. Which, in turn, allowed them to persevere through the difficulties of the COVID-19 pandemic.
For additional assistance in determining proper business structure, proactive tax planning and understanding the true value of your business, please reach out to anyone on our team at Strategic Lifelines. This pandemic has shown the resilience of business owners but also the importance of proper professional guidance in difficult times so you can continue to run a thriving business, even in the face of adversity.