What Money Lessons Have Small Business Owners Learned From The Pandemic?
The COVID-19 pandemic has taught us all a lot of lessons. From being compassionate to our loved ones to better managing money and saving up for the unseen, we all have been through it together. While we’re on the subject of harsh financial lessons, small business owners are no exception. According to a recent report from Statista, as much as 32% of small businesses became victims of the pandemic and ended up shutting the businesses down. Likewise, small brick-and-mortar store owners were compelled to fire their employees and encountered grave losses.
Nevertheless, some businesses have survived the pandemic and have bounced back. Thus, this got us thinking, what did they do to survive the unseen, while others faltered? As it turns out, that they had a better long-term vision, effective strategies, and many other factors. Similarly, they also had a long-term vision backed by a strong action plan.
Here are some of the hard lessons that entrepreneurs, especially small business owners, have learned from the pandemic:
Reinvestment is Always Worth It
One of the mistakes that a vast majority of small business owners make is they give up after the first setback. In other words, they end up quitting their business as they face losses down the road. But the pandemic has taught newbie entrepreneurs that giving up is not a solution.
It is essential to note here that businesses that survived the pandemic are the ones that did not give up. Instead, they learned the hard lesson and remained consistent with their business. They reinvested in their business while others gave up. Consequently, not only did they survive the hard pandemic but emerged stronger than they were ever before.
Retirement Savings Are Inevitable
Another hard lesson small business owners have learned from the pandemic is that a decent backup is always a necessity. They understood that they need to have a strong retirement plan and savings that will help in the longer run.
Nevertheless, during the pandemic, it was easier said than done. Due to grave financial loss and business closure times, it was hard for these entrepreneurs to put aside money for retirement. Thus, they were destined to either completely erase retirement savings or cut them in half. Consequently, they became victims of a grave financial loss.
On the other hand, business owners who stuck with their retirement plans regardless of the tough financial situation survived with glory. So lesson learned: No matter what, it is always crucial to put aside a decent sum of money for retirement. After all, if you have enough retirement savings, you will age with dignity. And should the need be, you can always reinvest that money into your business. As a result, you will bounce back stronger than you were ever before.
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