Council Post: Awareness And Preparedness: A 2021 Outlook For Small Businesses

Sean Manning is CEO and Founder of Payroll Vault Franchising LLC, as well as a CPA, and Thought Leader in the Financial Field.

If 2020 was considered a transformational year, then 2021 can surely be considered transitional. If this past year taught us anything, it was the difficulty of making large-scale predictions correctly. That was especially true given the impacts Covid-19 levied on small businesses across the nation. Still, there are several ways we can use the information and lessons learned in 2020 to provide a blueprint to successfully navigating what the next year has to offer.

Even as recent studies show a vast majority of small business owners are optimistic about 2021, there is no doubt that optimism must be met with preparation. Combining those motivators can springboard small businesses into pathways for both short- and long-term success.

Post-Pandemic Preparation

Of course, Covid-19 was the largest disruptor of 2020. Millions of small businesses were thrust into a crisis, forced to withstand countless uncertainties in consumer behaviors, employee safety protocols and ever-developing news about possible relief legislation. Payroll companies like mine were inundated with questions about how each new proposal affected our small business clients’ payroll processes and new workforce management processes.

As more Americans receive access to a vaccine, there is now a light at the end of the tunnel. But there is also a renewed importance on balancing all those factors as business life shifts back to whatever will be considered the “new normal.”

Businesses owners will have to ask questions such as:

• When can I safely welcome employees back to work?

• Should my business still offer the option of remote work?

• Will my customers expect the same products and services I’ve provided during the pandemic, or will they desire the business’s pre-pandemic offerings?

With so many on-the-fly adjustments businesses around the country had to make to survive the economic burden of Covid-19, change was rampant. Many of those innovations are still being practiced to varying degrees of success. Some businesses found an even better way to meet demands. Others struggled just to break even.

Whatever the case, things will likely continue to change in 2021, meaning both ends of the spectrum will need to determine which business plans work and which don’t in the post-pandemic era.

Locking In On Legislation

Regardless of a business owner’s political beliefs — or interest level, for that matter — there was no way to avoid the importance of the 2020 election season.

No matter who became president or which party controlled Congress, small business owners were going to be affected one way or another. Joe Biden’s election, along with the change that came from the January senate races in Georgia, signal a dramatic shift in legislation.

In addition to monitoring any Covid-19 relief legislation, which many small business owners still need, there will surely be battles on matters pertaining to a business’s outlook. For example, the transition to a new administration and congressional makeup could mean alterations to existing regulations and tax policies.

Of course, there is plenty to monitor beyond the spectacles in Washington, D.C. In addition to legislation on the federal level, business owners also have to be aware of any state and local policies that may affect them. Many states and cities are raising the minimum wage in 2021. Additionally, there are sure to be developments in local tax laws and continued new regulatory policies.

Small business owners will have to be as vigilant as ever to make sure they are compliant with any federal, state or local laws, ensuring they can withstand any tough breaks and can benefit from any opportunities. That has been the case for as long as I have worked in the payroll industry. However, the timing of this coming legislation — possibly lining up with the likely transition away from the business practices tailored for life in a pandemic — creates an even larger need for detail-oriented planning than ever before. 

This past year was full of historic moments. It introduced a once-in-a-lifetime health crisis that continues to challenge our economic outlook. It reignited calls for equality, provided a contentious election season and much more. In one way or another, every one of those events will impact the way life is lived and businesses are run well into 2021 and beyond.

There is plenty of reason for optimism in the new year, but success can only be expected when we are prepared to meet the moment.

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