Covid isn’t over. In fact, the virus is probably here to stay for a long, long time, perhaps forever as endemic. But, the worst is likely well behind us. However, some small business owners are using the pandemic as an excuse and customers aren’t buying it. This is because consumers are well aware of what’s really going on and do not take kindly to such unbelievable explanations. So, it’s time for small business owners to stop using Covid as an excuse. Now, let’s take a look at why it’s so damaging. Excuses are Bad for Business Small business owners have a lot on their plate. They are responsible for wearing many hats and often have to do everything themselves. This can lead to some owners making excuses to their customers when things don’t go as planned. While it may be tempting to do this, it’s important to remember that there are many consequences for doing so. This is because there are compelling reasons why small business owners should never make excuses to their customers. Business experts wince at pandemic excuses because, well, they’re excuses, which are not the bailiwick of successful entrepreneurs—who are, by definition, problem solvers. Although tossing off a Covid excuse may seem benign, it creates a messaging problem because it’s likely deceitful: Customers are now savvy to the fact that supply chain, safety, and staffing challenges are well-established market conditions—not sudden pandemic blows. —Bloomberg Business Remember, customers will accept difficulties for what they are. They understand some situations are simply beyond a small business’ control. But, when others in the industry are moving forward, meeting their customers’ needs, it becomes dangerous for entrepreneurs to make excuses. Why Small Business Owners Shouldn’t make Excuses to their Customers Covid has become the proverbial “dog ate the homework” excuse. Sure, it is possible, but it’s also growingly becoming improbable. In other words, sure, the pandemic and shutdown may have lingering effects. But, to apply it capriciously is just a bad business practice. Some of the reasons why small business owners should never make excuses to their customers include: It harms credibility. When a small business owner makes an excuse to a customer, they are essentially saying that they are not capable of handling the situation. This can cause the customer to lose faith in the small business and may never use their services again. Businesses can suffer a bad name. If a small business is known for making excuses to their customers, it will not be long before word gets out. Customers will start to avoid doing business with them because they know that they will not be able to count on them to deliver what they promise. It makes owners appear ineffective. When a small business owner makes excuses to their customers, it makes them look like they are not in control of their business. This can lead to the customer questioning the owner’s ability to run their business and may cause them to take their business elsewhere. Customers may never return. If a small business owner regularly makes excuses to their customers, it is only a matter of time before they start losing them. Once a customer has had enough of being lied to, they will take their business to competitors who deliver and may never come back. As you can see, there are many reasons why small business owners should never make excuses to their customers. While it may be tempting to do so in the moment, it is important to remember that the consequences can be very severe. If you are a small business owner, do your best to always be honest with your customers and never make excuses for your mistakes. Your business will be better off in the long run. Do you have any tips for small business owners on how to avoid making excuses to their customers? Please, take a moment to share your thoughts and experiences so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.

What do businesses do when their PPP or Payroll Protection Program funds run out? While small companies can apply and receive relief, that money is only finite. It will go just so far before it’s gone. And, once it’s gone, it’s gone for good. Even organizations with business interruption insurance benefits have limited resources. Eventually, the cash will run out. So, what do small businesses do then? PPP Loan Forgiveness Only Solves One Problem It’s important to remember that PPP loan forgiveness — while most certainly helpful — merely solves one problem. Meaning, there are still other debts and obligations to pay and to meet. That alone reveals the fact there’s a lot more to doing business than just compensating employees. Vendors, contractors, and others also need to be paid. The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. —U.S. Small Business Administration This gets to the heart of the larger issue — the inescapable reality of the business world. Put another way, if someone paid off one of your personal debts and you had five, six, or ten more, while that’s a blessing and it’s appreciated, it does not get you totally out of debt. Businesses don’t operate that way because there’s always additional obligations. What to Do When Your PPP Money Runs Out Since businesses stay in a cycle of dynamics, with revolving credit and monthly bills, and they apply and receive PPP money, what can they do once those funds are gone? Here are a few suggestions that might prove helpful to your business: Offer invoice financing. Instead of requesting (or demanding) the entire invoice amount to be paid, give them the option to finance their outstanding balances. You can charge a small fee and/or interest rate — so long that it’s legal and ethical. Ask suppliers for extensions. For businesses that owe other businesses money, it’s worth a shot to ask for some more time or at least try to establish payment arrangements. This will help to take off a little pressure and to free up some cash. Review personnel staffing choices. Most businesses already have or will soon, be forced into this scenario — assessing which team members aren’t essential. It’s a tough spot but because employees most always represent the largest expense, this can’t be ignored. Consider liquidation or selling equipment. Another thing you can do is to sell off non-essential equipment, if available. Or, liquidate some inventory or materials. These are all difficult decisions but they could mean the difference between staying in business and going out of business permanently. Offer new services that are in demand now. Look at what services are in demand now that may be in line with your service offerings or a close extension thereof to provide immediate cash flow. Quickly shift to provide those services by promoting them to your current customer base and use social media to get the word out. Several industries and businesses have done this in recent weeks. What other suggestions do you have? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.