Top 3 Challenges for Entrepreneurs During COVID-19
COVID-19 has created many challenges for entrepreneurs and their employees. Many are worried about how long they can hold on with partial or full shut-downs preventing them from running their business like they did before. For those without large cash reserves in hard-hit industries like tourism, this is a scary time.
Top 3 challenges for entrepreneurs during COVID-19
1. Making tough choices
Entrepreneurs are a group with a higher risk-tolerance than most, but that doesn’t mean that they don’t get nervous about making decisions during uncertain times. Many entrepreneurs are facing a huge drop in revenue since the shutdowns began and that requires making some tough choices. In fact, small businesses in Hawaii have experienced a revenue loss of over 60% on average since March 13. Will employees need to be laid off? Will the business need to invest in a more robust e-commerce platform? Whatever the issues, entrepreneurs need to be able to identify them, write down their options and be decisive in their choices to avoid sinking.
2. Staying on top of new legislation/rules
Businesses are having to stay on top of ever-changing rules and regulations as related to new requirements for COVID-19. Entrepreneurs should make sure to check official sources of information such as government websites or professional organizations in their industry to make sure they are getting the right information. If businesses don’t keep up then they risk fines or lost business if consumers see that they aren’t following the latest rules from the local, state and federal government.
3. Mental stress and burnout
Entrepreneurs are facing unprecedented stresses because of the pandemic. As it is, most entrepreneurs work long hours and deal with a lot of risk. Adding in lost revenue due to shut-downs, covering the workload of sick employees, additional expenses for PPE and other safety measures, and an uncertain landscape is a recipe for mental stress and burnout. Entrepreneurs should do the best they can to take breaks. Schedule a cut off time for work every evening and at least one day a week off. Recharging the batteries is the only way to stay fresh and able to handle the challenges that small businesses are facing today.
The sad truth is that not all businesses will make it through the pandemic and many Hawaii businesses have already been pushed to the brink of closing. Those that are able to navigate through this time will likely come out stronger than ever, having learned how to adapt to unexpected challenges. Businesses may also increase brand loyalty because of the way they treated their employees and customers during COVID-19.
How partnering with a PEO can support your business during COVID-19
When a startup starts to grow, it’s time to hire employees and a PEO provides small businesses with many advantages that they might not otherwise be able to afford. These advantages have become even more important during this international health crisis.
When small business owners’ partner with Makai HR they:
Gain peace of mind that they are complying with all of Hawaii’s labor laws, which is especially important when decisions are being made about how to handle a health crisis.
Can provide comprehensive health care plans that will give your employees peace of mind about going to the doctor for treatment and testing.
We are also here to support your business if you are working remotely:
Our cloud-based platform means that your employees can manage their HR needs through a computer, tablet or phone, making it easier for them to work from home.
Our cloud based HRIS platform means that your HR team can manage HR remotely if they are sick or everyone is working remotely.
Pro tip: this is a good time to encourage all employees to update to Direct Deposit to reduce in person bank transactions and continue timely payroll payments. Do not delay. Contact us today to get started!