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Home » Organizational Change » How to Create a Post-COVID-19 Business Plan: The Complete Guide

How to Create a Post-COVID-19 Business Plan: The Complete Guide

To succeed and stay profitable in the coming months and years, organizations must develop a post-COVID-19 business plan.

Existing plans, as most business leaders know, are no longer relevant – new ones will be needed to survive and thrive during the post-viral era.

To create suitable strategies, it is important to understand:

• How the pandemic is impacting the business landscape
• How it will continue to unfold 
• What the world will look like after the virus has subsided
• Effective strategies that can be applied across industries

In this article, we will cover these topics and more.

To start off, we should first learn how the pandemic will shape the economy and the world in the years ahead.

What Will the Post-COVID Era Look Like?

Many analysts and research firms predict that the world will be irreversibly changed by the pandemic. According to McKinsey, for instance, the COVID-19 pandemic will deeply affect the global economic order.

In short, we won’t return to the same normal that we once knew – instead, we’ll be returning to what they call “the next normal.”

We’ve put our first 100 #COVID19 related articles & insights into 4 curated guides. The first, “The Path to The Next Normal,” focuses on the resolve necessary to lead with purpose, mobilize your team & protect the continuity of your business. https://t.co/a33ey92qav pic.twitter.com/NFIoLXi1aI — McKinsey & Company (@McKinsey) May 25, 2020

McKinsey, Accenture, BCG, and many others agree that the pandemic will fuel a major paradigm shift that will affect many aspects of business, society, and our daily lives.

One consequence of this shift is that businesses must make major changes to their business strategies, plans, and operating models.

Naturally, before making such major changes, organizations will need to understand what changes lie ahead.

Below, we will examine a few of the biggest trends to watch for during the post-COVID era.

The Economy

COVID-19 quickly transformed from a global health crisis into the largest financial crisis of our lifetimes. 

Government restrictions, such as lockdowns and mandated business closures, severely disrupted businesses and entire supply chains. 

The entire financial system contracted in response, resulting in job losses, bankruptcies, reduced customer spending, and more.

Though the economy will rebound at a certain point, it will take significant time – and the competitive landscape may look very different in the coming years. Small businesses and certain industries, such as the airline industry, may need to be rebuilt from the ground up, for example.

Customer Experiences and Needs

The pandemic has also had a significant effect on customer expectations and behaviors.

For instance:

• The economic impact has depressed customer spending
• Online shopping has become more popular because it is safer
• Customers prefer businesses that offer more hygienic products and services

Some of these trends will reverse to a certain extent. 

At the same time, however, the experience of the pandemic will undoubtedly fuel an increased demand for health-related services, hygienic business practices, and so forth.

In fact, Accenture even suggests that every business will need to become a “health business.”

Though every customer base and audience segment will respond differently, businesses can fully expect that their customers’ expectations, needs, and behaviors will shift in some way. Customer-centered business practices, covered later, will become even more essential as we move forward into the next normal.

The Workplace and Employee Expectations

Health concerns and requirements will also fuel many changes to the work environment.

Some of these will be driven by shifts in employee expectations, while others may be mandated by governments and regulatory agencies.

A few changes that we can expect include:

• An increased need for health precautions in the workplace
• On-site health checks 
• More telecommuting
• Less business-related travel

In short, many of the changes that occurred during the pandemic will have a lasting impact – and some may even become permanent features of the post-COVID world.

Digital Technology

Digital technology will be one of the most important areas to focus on when designing post-pandemic business plans.

There are several reasons why:

• After COVID-19, the world will be far more reliant on digital technology
• Digital technology can improve organizational resilience, performance, and agility, among other areas
• Many digital trends and technologies are making substantial progress during the pandemic, such as robotics and telehealth
• Digital leaders will have a better chance of innovating and outperforming competitors

Trends such as these will end up reshaping the world after the crisis, rebalancing the technological landscape and contributing to a more digitally advanced economy.

Reasons such as these should compel organizations to continue driving digital transformation efforts, or even to accelerate them.

Mapping Out the Journey

The trends covered above will continue to influence the global economy over the course of the pandemic, but these changes will take time to develop. 

Planning for the post-viral era will require, among other things, an understanding of the journey that lies ahead.

Below is a three-stage roadmap that describes how the pandemic will unfold:

The first stage of the pandemic was the crisis itself.

During this phase:

• Governments implemented lockdowns and quarantines
• Businesses shutdown worksites and implemented remote working procedures
• Travel restrictions limited local and international travel
• Other government restrictions limited business operations
• Organizations initiated business continuity plans

For the most part, most governments and organizations simply did their best to mitigate risk, reduce losses, and assess the situation.

At this point, the true scale of the crisis remained uncertain – for the most part, organizations did their best to maintain operations and chart a path forward.

2. Stabilization

By mid-2020, the scope and scale of the crisis had become clearer. 

Business leaders had a better grasp of the pandemic’s impact and, as a consequence, what their options were.

During this phase of the crisis:

• Business continuity efforts will continue as necessary
• Overall economic performance remains stagnant
• Organizations must plan for further potential disruptions  
• Leaders pivot existing strategies and operations to fit the current climate

Most experts suggest that this stage of the pandemic will last until a vaccine is developed and distributed. 

Once that occurs, then health restrictions will begin to relax. And, as a result, the economy can begin its path towards full recovery.

3. The Next Normal

The next paradigm after COVID-19 goes by different names, depending on the source.

McKinsey calls that paradigm “the next normal,” Accenture calls it “the Never Normal,” and many others simply call it “the new normal.”

Regardless of which label one uses, the fact remains that the post-COVID age will be far different from the pre-2020 era, as we saw above. 

To succeed in that new paradigm, businesses must:

• Plan for many of the changes mentioned earlier
• Survive the remainder of the pandemic
• Implement aggressive changes to operations and strategies as needed

Making deep organizational changes may not be necessary for every organization, but for a great many, it will be.

After all, since the entire economic system is undergoing transformation, businesses will need to adapt. 

How to Design a Post-COVID-19 Business Plan

Here are a few frameworks and tools that business leaders can use to create business plans for the post-COVID world:

A 5-Stage Framework from McKinsey

McKinsey , as mentioned, coined the term “the next normal,” which has become widely referenced by other businesses around the world.

McKinsey's global managing partner Kevin Sneader and senior partner Shubham Singhal share how leaders can begin navigating to “the next normal.” Tell us how your organization is responding to the #coronavirus crisis along these dimensions. https://t.co/bm8nfm5esn pic.twitter.com/SgduUYmHfr — McKinsey & Company (@McKinsey) March 24, 2020

According to their analysis, businesses and institutions will pass through five separate stages on their way to the next normal:

• Resolve. During the initial weeks and months of the outbreak, businesses were mostly focused on crisis response efforts. These included remote working, workplace safety measures, and other procedures aimed at protecting the business. Business leaders were tasked with determining which actions to take, as well as the depth and pace of those actions.
• Resilience. As the health crisis quickly transformed into a global financial crisis, it became apparent that the scale of the crisis would perhaps be the largest crisis faced in the past century. Governments struggled to keep the financial system afloat, while multiple sectors faced liquidity and solvency challenges.
• Return. Disaster recovery and the restoration of business operations became the next priority. However, sporadic outbreaks and secondary waves continue to threaten businesses in the absence of a vaccine. Businesses and governments both were faced with the difficult decisions of reopening, versus the financial threat of staying closed.
• Reimagination. The ongoing changes to the economy will require businesses to reimagine their business models. On the one hand, we will continue to face new challenges and risks, but at the same time, new opportunities we be revealed. Leaders will better understand how to create thriving businesses and networks that are more resilient and productive.
• Reform. Over time, the “black swan event” that is COVID-19 will drive reform in a variety of areas. Public health systems, government regulations, and business practices will all be forced to rethink their operations in order to become less susceptible to such events in the future.

This model can serve as a roadmap for the remainder of the crisis, while also offering useful indicators of what we can expect in the post-COVID era.

Deloitte’s Flexible Scenario Planning

Another useful planning strategy comes from the consulting firm Deloitte .

One model, offered by Deloitte’s UK branch, provides a flexible scenario planning strategy that can be used during the remainder of the crisis. Since government restrictions can severely impact business operations, the model advises creating a set of plans based around those restrictions.

Deloitte suggests creating plans for three specific time periods:

• When restrictions are at their peak. As restrictions rise, so too do limitations on business operations. These limitations can result in the closure of work locations, an increase in remote working, and less consumer spending. Since these restrictions can occur at any time, businesses should be prepared to implement plans for these scenarios at any time.
• Just after restrictions have begun to relax. In many countries, restrictions tend to be lifted in stages, allowing businesses to restore operations under certain conditions. These conditions will vary from location to location and from industry to industry, so business leaders should evaluate their own government’s regulations when designing plans.
• After most restrictions have been lifted. At some point, regulations will be relaxed almost entirely, allowing businesses to restore normal operations. Plans should also be made for these periods, though, as mentioned elsewhere, restrictions may be implemented again in the event of an outbreak. For that reason it is important to maintain plans for all three scenarios.

In addition to developing specific plans for each scenario, Deloitte points out that those plans must be evaluated and “stress-tested” to ensure that they are actually viable.

Deloitte’s planning framework will be useful during the remainder of the crisis, as we move towards the post-COVID new normal.

Since it is more concrete and tactical, it may be more easily implemented than some of the other frameworks covered here. However, since it is not as high-level as others, this framework should be used in combination with some of those that look farther into the future.

Another Approach to Scenario Planning, from BCG

Boston Consulting Group (BCG) also recommends a scenario-based planning strategy .

BCG says that it helps to design each scenario around several factors:

• The public health situation, its duration, severity, and location
• How relevant government restrictions will impact the firm
• The macroeconomic environment
• Demand in specific business scenarios

Key indicators can be established for each of the factors listed above, to provide ongoing insight. Employment and investment levels, for example, can be used as indicators for the state of the economy.

To ensure that each scenario is implemented effectively, BCG also recommends:

• Building strategies based on the company’s starting point
• Planning for several time horizons, rather than just the short term
• Maintain situational awareness and act accordingly
• Shape the policy environment as needed to improve the chances of success

By following these principles and building a supporting organizational structure, organizations will be able to make effective decisions in the short-term. And, by maintaining their long-term strategic thinking, they will be prepared to confront the new normal.

5 Human Truths to Watch For, According to Accenture

Accenture claims that in the wake of the virus, we will face five new “human truths” that will impact sentiment, behavior, and, as a consequence, business strategies.

The firm suggests that:

• Customer confidence will erode, which will increase the importance of trust. As apprehension rose related to the virus, purchases were postponed and many businesses attempted to compensate with virtue signals and more virus-related noise. In such an environment, it should not be surprising that overall confidence decreased in a number of areas. The cost of earning that confidence back, therefore, will increase after COVID-19 has ended .
• Virtual services and interactions will become the norm. The virus has spawned a massive trend in virtual services and activities, from remote working to online shopping. Accenture suggests that after the pandemic, the preference for virtual activities will significantly increase, ushering in what they dub the “virtual century.”
• A health-related economy will emerge and redefine customers’ expectations and relationships with businesses. Not only will the health industry become more popular, every business will become a health business, estimates Accenture. Health-related features will become far more common in products, and they may even become mandatory in certain industries – germ filters, for instance, may become required in certain types of vehicles.
• People will be more likely to “cocoon” at home, which will impact products, services, delivery, and so forth. Today’s virus-related concerns will remain for some time to come, and a number of people will stay at home in order to keep safe. This particular trend may only affect certain segments of the population, however, since extended quarantines seem to actually spur restlessness (see below).
• Government authority may be redefined in certain regions, depending on how well those governments handled the crisis. In other words, if the government’s measures agreed with the people, then they would likely continue to support the government and trust it with more governing power. If those measures proved ineffective or weren’t amenable, then people may resist top-down governance.

These profound changes, if true, will impact every organization, regardless of their audience or their market. In fact, they will even impact the workplace and the workforce.

Planning for these shifts in human perspective should become one of several key focal points, but there are several other important areas to focus on as well.

A Post-COVID-19 Checklist: Top Priorities to Focus On

The frameworks covered above can be useful tools when developing a post-COVID plan. Below, we’ll cover a few key points that should be included in those strategies:

1. Protecting employees and customers

During any crisis or emergency, organizations should prioritize the health and safety of their people.

At the outset of the coronavirus pandemic, this took the form of:

• Remote working 
• Closure of work locations
• On-site health and safety precautions

Protecting people extends beyond health, however. 

In the case of the current crisis, it can also include financial protection and job security. Businesses that choose not to lay off employees, for instance, are protecting their workforce.

Through these types of protection, an organization can, in turn, earn the support of those people – support that will be vitally necessary on the road to recovery.

2. Agility, resilience, and adaptability

Today’s crisis has demonstrated the importance of organizational agility and resilience.

Though both terms are similar, they reflect different concepts.

Organizational resilience refers to an organization’s ability to survive disruptions that impact business operations.

To become more resilient, organizations should focus on areas such as:

• Business continuity planning. Business continuity planning focuses on protecting key business functions and restoring operations. Effective continuity plans reduce the negative impacts of business disruptions, such as financial damage and the effects on the workforce. 
• Emergency response plans. An emergency response plan differs from a continuity plan in that it specifically aims to protect people during an emergency situation. These emergencies can include natural disasters, fires, workplace accidents, and other situations that would impact human safety. 
• Risk assessment and management. Risk management evaluates the risks associated with a particular business activity. This business discipline can be applied in many business areas, including change management, digital transformation, and business continuity. Assessing risk can help business leaders prioritize prevention and mitigation strategies.
• Cyber security and digital maturity. Cyber security minimizes the risk of data breaches, hacks, and other online hazards. Digital maturity, on the other hand, refers to the overall digital capabilities of an organization, including its software, IT infrastructure, and employees’ digital skill levels. Both can improve an organization’s ability to operate and rebound in the event of a crisis.

The more resilient an organization is, the less it will be impacted by major business disruptions.

Agility is equally important, though it covers different territory.

An agile organization:

• Can pivot strategies and activities quickly. Fast response times are crucial in today’s fast-paced world. Customer sentiment can change rapidly, demand can fluctuate at a moment’s notice, and disruptions can have serious consequences in the marketplace. Agility can decrease response times, speed up project implementations, improve the efficiency of organizational transformation , and more.
• Responds to real-world circumstances, rather than following static plans or preconceived notions. Agile business processes are built around customer feedback and real-world data. This lean approach reduces waste and keeps products relevant to customers’ actual needs, rather than preconceived ideas or assumptions. The result: happier customers who are more loyal and more profitable.
• Stays human-centered, responsive, and data-driven. Collaboration is fundamental to agile business processes. A lack of collaboration, on the other hand, reduces communication, increases internal discord, and can negatively impact the workplace. By building collaboration into business processes, businesses can cultivate a better workplace, improve innovation, and create a more adaptable business.

Adaptability and speed are two characteristics commonly associated with agility, and it should be easy to see why agility is so important.

The more agile an organization is, the more efficient, productive, and effective it is. 

In an era whose only constant is change, agility will not just be an advantage, it will be a survival trait.

3. The evolving customer experience

Customer expectations evolved quickly during the initial stage of the outbreak: health concerns kept many people at home, discretionary spending dropped, online shopping increased, and so on.

How can brands maintain relevant customer experiences as they shift to digital-only interactions? Find out more in the #TechVision2020 trends: https://t.co/M0AefOUDVC #IntoTheNew pic.twitter.com/5ON9sFo7KM — Accenture (@Accenture) May 4, 2020

However, customer sentiment can swing in the opposite direction just as quickly, as some UK retailers discovered when they reopened their stores after lockdown.

During the pandemic, a number of factors can impact customer sentiment and behavior, such as:

• Health concerns
• Lockdown requirements
• Government restrictions

When planning for the new normal, it is important to keep these types of factors in mind, which can help when making scenario-based plans.

However, it is difficult to predict customer behavior during stable economic conditions. In crises and unstable economic environments, accurate predictions become even more difficult.

For that reason, it is critical to stay agile, lean, and customer-centered, as mentioned above.

Namely, it is important to:

• Closely monitor customer sentiment and activities in real-time. Customer sentiment can shift rapidly, especially in today’s socially networked world. A single event, for instance, can be instantly transmitted to millions of people worldwide, fueling shifts in customer behavior and sentiment. Brand monitoring and customer analytics can offer real-time insights into that sentiment, which is essential for an effective response. 
• Adapt marketing and sales strategies accordingly. When customer sentiment changes, sales and marketing tactics should also change. Along with brand monitoring solutions, businesses should have a marketing stack that allows them to make rapid changes to their customer experience. 
• Redesign products and experiences to align with those customer expectations. McKinsey, for example, recommends that industrial companies replace their existing product development strategy with a new approach, termed Rapid Product Improvement (RPI) . While less comprehensive than traditional approaches to product development, this technique increases speed and collaboration. And in the current business climate, these two traits can make a big difference in marketplace performance.

In many cases, businesses may need to rethink their existing operations and strategies.

Becoming agile may require significant change, in other words – and while that change may not be easy to implement, it may in fact become necessary in the coming months and years.

4. Organizational change

To stay relevant, many companies may need to make major changes.

Such changes can include:

• Changes to operations, strategy, or the business model. In the post-COVID era, businesses may need to make major transformations that affect their entire company. The next normal , after all, will be accentuated by changes to customer behavior, the economy, society, digital technology, and more. To survive and thrive in that landscape, many organizations may need to reimagine their very place in the business ecosystem.
• Organizational restructuring. Restructuring an organization involves the redistribution of team members, hierarchical restructuring, designing new business units, and so forth. If an organization makes major strategic changes, restructuring may become necessary.
• Organizational culture change. As many business leaders know, organizational culture impacts business performance, the employee experience, and ultimately the customer experience. Cultivating certain cultural traits, such as self-reliance and digital savviness, can enhance organizational performance, improve the work environment, and more.

Or, in some cases, an organization may need to undergo a complete transformation. That is, a company may need to fundamentally redesign and restructure itself from the ground up.

When implementing organizational changes , large or small, it is essential to take a structured approach to change management.

An organizational change management team, led by a change manager, will coordinate, implement, and manage a change project.

The benefits of structured change management include:

• Improved efficiency, timelines, and outcomes
• Decreased employee resistance
• Greater chances of successful change

Change management is a well-established discipline that can significantly improve the performance of a change program, making it well worth the investment.

5. Digital transformation, adoption, and maturity

The current crisis has disrupted many industries across the globe. Some industries have stalled, others have slowed, but a few have actually continued to grow. 

As mentioned above, despite an overall decrease in IT spending, digital transformation continues to accelerate. 

The crisis, in fact, has become a catalyst for certain technology trends:

• Telehealth use has skyrocketed in certain parts of the world
• Robots have been used to clean streets, make deliveries, greet customers, and more
• Remote working software has fueled online teams around the globe

COVID-19 has also exposed vulnerabilities in other areas that can benefit from increased digitalization, such as the supply chain. In the near future, areas such as these will undoubtedly attract more investment.

Every industry will progress differently in terms of digital technology.

However, given the overall pace and trajectory of the business world, what is certain is that the post-COVID economy will be more dependent on technology.

To prepare for that economy, organizations should allocate resources into areas such as:

• Digital skills training. Employee training and development must evolve to keep up with the digital workplace. Digital skills are required for the modern enterprise employee, especially since businesses adopt new tools so often. However, training must also evolve to keep up with the changing digital work environment – classroom training and in-person training, though suitable for certain activities, aren’t suitable for software training. 
• The development of a digital culture. Digital skills training can certainly improve employees’ workplace skills. However, to truly become an efficient digital workplace, companies must evolve their workplace culture as well. In other words, there must be a seamless interplay between employees and their tools. They must be pro-learning and pro-technology, which will improve innovation, engagement, and performance.
• Modernizing the IT infrastructure. Naturally, without the right tools and infrastructure, employees will not be able to execute the processes that are required of them. It is crucial to lay the foundation of a digital-first business strategy by building a modern IT infrastructure, installing modern tools, and integrating those systems. Obsolete technology, after all, will only slow down employees and limit the organization’s performance.
• Creating an integrated digital workplace. The digital workplace is a concept that emphasizes the need for holistically integrating tools, employees, and work processes. Merely deploying new software, in short, is hardly enough to drive innovation and performance. Instead, the digital workplace must be built to fuel innovation, performance, and the digital-first employee.

In short, organizations should become more digitally mature.

Digital maturity refers to a company’s overall digital capabilities – the more digitally mature an organization is, the greater its capabilities. 

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Start » startup, starting over how to write a business plan for a post-pandemic world.

The future is still unpredictable, which is why building flexibility into your business plan is critical.

By one estimate, more than 100,000 small businesses have shut permanently since the pandemic hit earlier this year. Many of these business owners are selling their companies and retiring early, but other merchants will look for their next challenge: a business that can thrive in a post-pandemic world.

If you’re among the many merchants looking to restart, it can be difficult to write a business plan when so many things are still unpredictable. Here are some tips that can help you build flexibility into your business plan and attract investors by thinking strategically about the future.

[Read more: How to Start a Business After COVID-19 ]

Build a "future-back" vision

A business plan typically lays out a strategy or a road map for how your venture will serve customers, investors and key stakeholders with product or service. While the elevator pitch stays high-level, the plan should be detailed enough to recruit investors to back your company.

Before you get into these strategic details, Mark Johnson, co-founder of Innosight told Harvard Business Review , start with the vision. “Vision is getting you out in that five to 10-year horizon of what you could and should be, not just about the way things are today, to seize on those opportunities that can develop well past your core. The strategy is how you get there in terms of the choices you make,” said Johnson.

Johnson recommends spending 10–20% of your leadership time developing a “future-back” vision that can then be translated into a business strategy. Think beyond the next two years to five and 10 years into the future. This vision should be the inspiration for how you move forward, a shift in mindset that can pull you and your team out of survival mode into creatively thinking about where consumer trends may lead.

As part of this exercise, try considering some of these questions :

• How will life change for consumers in five to 10 years?
• What will supply chains look like?
• What will the competition look like in your specific market?
• What skills will your team need to make this vision a reality?
• What decisions do you need to make now in order to achieve this vision?

Work backward from your vision to create a strategy that will lead to long-term success, rather than exclusively focusing on the present.

[Read more: Business Ideas That Will Emerge Out of the Pandemic ]

"The pandemic has given you and your team the opportunity to transform for a more turbulent world."

James Allen, partner, Bain & Company

Practice agile business planning

Once you’re able to shift your mindset, it’s time to build that vision into a strategic business plan. Chris Perfect, owner and principal consultant at Concept and Perspective, LLC , recommends taking a different approach to writing a business plan fora post-pandemic world.

“The traditional approach to business planning is to produce a detailed document setting out 'what, where, for whom and why' of the company's business, along with market data and a financial plan,” said Perfect. “The approach of agile business planning is to simplify how business planning is done by focusing on a small number of key objectives, sharing those widely and using technology to really push forward with implementation.”

The agile approach leads to a living document that is shared and updated regularly, allowing the business to evolve and respond to shifting market conditions flexibly and with accountability. Perfect recommends to start with five to seven high-level objectives that are critical to the growth of your new business. Then, create a hierarchy of tasks and initiatives and then specific actions necessary to achieve those.

“Assign responsibility (defining timeline and budget where appropriate) for each task, but empower those responsible to be flexible and creative as to how they achieve the task,” said Perfect. “Governance is also really important to enable flexibility. Establish a regular cadence of reviewing the business's progress and be ready to change, add or push-out/pull forward the implementation date of key tasks.”

The team you have to implement your agile business plan is critical to the success of your vision.

Transform from the inside out

Asa report by consulting firm Bain & Company warns, “Companies that hurry back to old ways of working may very well stumble in the decade to come. The pandemic has given you and your team the opportunity to transform for a more turbulent world.”

Bain’s report goes on to predict that successful post-pandemic businesses will be defined by their partnerships, rather than assets or products. Perfect agrees.

“It's all about the team. Many merchants make the mistake of not putting sufficient emphasis on the business's 'human capital': who is going to drive the business forward, develop products and services or build external relations,” he said.

Share your future-back vision with your team to inspire, motivate and engage employees around what’s possible. Then, assign different pieces of your plan to team members to create a sense of ownership and accountability. This will help your new business go the distance in our post-pandemic world.

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COVID-19 (Coronavirus) Business Continuity Plan

A 7-step guide to creating a business continuity plan for dealing with COVID-19.

Updated on June 25th, 2023

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A business continuity plan (BCP) is a strategic plan a business would follow to prevent and recover from major disruptions to business. Typically, businesses establish a continuity plan for natural disasters, such as floods, arson, and terrorism.

The COVID-19 (Coronavirus) outbreak presented businesses with many unforeseen challenges due to its fast spread, global reach, and resulting lockdowns. This guide was created to help businesses modify and improve their business continuity plans during this time to be better prepared for the effects of the pandemic.

COVID-19 Business Continuity Plan Template

Use our general business continuity plan in Word format to help stay on task.

How to Prepare for COVID-19:

1. prioritize your employees' safety..

The well-being and health of your employees should be your top priority. Start by addressing the needs of employees who display COVID-19 symptoms. To keep your entire team safe, send any employees with flu-like symptoms home. In this scenario, ensure you maintain transparent communication with all your employees, as this will go a long way in reassuring them.

Look into remote working solutions. To do this, you'll need to determine if you have the tools, technology, and capacity to support a small or large remote team. In addition, you might need to consider introducing or expanding flexible work arrangements. Depending on your type of business and industry, businesses may also need to reorganize teams and reallocate resources.

One of the adjustments businesses have to make is to implement infection protection measures. You need to create a strategy that enables employees to continue to work without endangering them. You can do this by establishing employee well-being programs and policies that support a safe working environment.

2. Identify the risks and impact of COVID-19.

As a business, it's vital that you stay updated on the latest news and regulations put into place by government officials. This also provides you with more information to help identify the risks and overall impact COVID-19 will have on your business.

The following are possible impacts that businesses should consider:

Employees may be unable to travel to work due to travel restrictions put into place . For employees that make use of public transport, the risk of infection is much higher due to close contact with other individuals. Additionally, since schools are officially closed, many parents may be unable to attend work due to childcare issues.

Employees may be prohibited from attending work . In the case of national shutdowns, employees will be unable to enter workspaces.

A visible slowdown in sales. During a national shutdown, customers will be unable to purchase services and products, which will lead to a rapid decrease in sales.

Additional costs for hiring temporary employees . Depending on the type of business or industry you're based in, you may need to continue work during a national shutdown. This will generally require essential employees only and if essential employees are diagnosed with COVID-19, you will need to consider hiring temporary employees.

Diminished workforce performance. If your employees are forced to work remotely but do not have access to the same quality of resources and technology, you could see a decrease in productivity.

Additional cost of establishing a remote workforce. As mentioned above, you may need to put resources in place to help employees maintain the same level of functionality. However, this will cost your business as employees might require special equipment, communication devices, and software.

Your business might be forced to close down. If your business does not provide essential services and cannot afford a remote workforce, you will have to close down during lockdowns. This could result in unpaid time off, especially for businesses like restaurants, salons, and bars.

3. Establish open and transparent communication.

Employees will look towards their community leaders, government officials, and employers for guidance during these uncertain times. Therefore, it's important that you encourage open dialogue with your employees and be as transparent as possible.

Leave as little to interpretation as possible . Employees will expect clear and straightforward steps that they can follow. When setting up your continuity plan, consider the diverse perspectives of your employees and which communication platforms will best suit their needs. This will help you determine how detailed your plan should be.

Establish a communications plan that provides employees, senior management, customers, suppliers, and government regulators with regular updates . Make sure your updates stem from verifiable news sources, such as the Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO).

4. Reshape your business plans for continuity purposes.

As the impact of COVID-19 continues to reshape the way businesses operate, it's critical that you review existing business plans, including your current business continuity plan and business disaster recovery plan.

To help address the COVID-19 challenges, businesses should:

Monitor direct cost escalations . This should also include the COVID-19 impact on overall product margins, which may require businesses to renegotiate terms and conditions where necessary. Businesses may be vulnerable to financial stress and long-term implications if they are slow to react.

Consider alternative supply chain options. If your business needs to source products or materials but the supplier is based in areas significantly affected by COVID-19, consider looking for alternative options. Remember to maintain active communication with all suppliers.

Identify how the COVID-19 pandemic impacts budgets and business plans. Start by conducting assessments with multiple scenarios to understand the potential impact on your business's overall performance. After detailing how long the impact is expected to last, and how it affects suppliers and budget predictions, revise your business's plans.

Look into alternative funding. Many businesses will face the issue of short-term capital demands. Based on your findings from the business plans assessment, you might need to look at near-term capital raising, short-term liquidity, debt refinancing, or additional credit support from banks, partners, or investors.

5. Prioritize key business functions and processes.

Start by identifying the key products and services your business provides, as well as the customers they're delivered to. This will help determine which high-risk areas are vulnerable, outline dependencies, and estimate the potential financial losses your business may face. Then, prioritize which business functions require additional attention.

6. Make use of support policies and funding.

Across the U.S., local governments and organizations have implemented several financial, social insurance, and tax-related policies to help support small businesses during this time. It is important to note that government support may differ based on your location and industry.

Monitor nationwide government and business opportunities that could support your business during this period. For example, the Small Business Administration (SBA) is providing low-interest working capital loans to small businesses and non-profit organizations.

7. Review and revise your business strategy.

Once the COVID-19 pandemic is controlled, you should consider reshaping your entire business strategy. This should include an assessment of all plans, including marketing, communications, and BCP. Your current revision will be done quickly and somewhat under duress as the situation continues to change dramatically.

If your assessment reveals any deficiencies, you will need to identify:

• Root causes.
• Timeliness of action.
• Lack of infrastructure.
• Labor shortages.
• External environment issues.

Once this is complete, consider putting new internal guidelines, plans, and policies in place based on the lessons learned. This will help you better respond to future crises and pandemics.

What is a Mission Statement?

Learn what makes a Mission Statement unique, and how to write one. Includes frequently asked questions about Mission Statements.

Mar 4, 2022

What is included in a COVID-19 business continuity plan?

• Policies that address various types of natural disasters.
• Processes that must be followed during this time.
• Guidelines that detail the business processes, assets, human resources, business partners, and more.
• An outline of the risks the business faces and how it will impact operations.
• Safeguards and processes to help mitigate the risks.

How do I prepare my business for COVID-19?

• Prioritize your employees' safety .
• Identify the risks and impact of COVID-19 .
• Establish open and transparent communication .
• Reshape your business plans for continuity purposes .
• Prioritize key business functions and processes .
• Make use of support policies and funding .
• Review and revise your business strategy .

Where can I find a COVID-19 business continuity plan template?

Download our COVID-19 business continuity plan template for free.

Returning to the Workplace: Guide to Reopening Your Business After COVID-19

We understand if you feel like you and your organization have been through the wringer since COVID-19 struck. Who wouldn’t? Companies everywhere have faced one unprecedented challenge after another, while society coped with countless disruptions and an enormous toll in human lives. Now, as vaccines offer hope that the worst will soon be over, organizations that temporarily adopted remote work face their next big challenge: reopening their business after COVID-19 and returning workers to the workplace.

In this article, you’ll find expert reopening advice from Cassie Whitlock, director of HR at BambooHR, followed by a list of helpful free resources.

What to Expect When Reopening

At first, you might think reopening a business after COVID-19 is as simple as flipping a switch: pick a date when everything will go back to normal and then tell everyone to show up at the office and conduct business as usual. Unfortunately, it isn’t that easy. As the pandemic winds down, there will continue to be many health matters to consider and crucial business decisions to be made.

Questions and Answers About Reopening Your Business After COVID-19

To help you identify and manage issues you’ll need to address when reopening your business after COVID-19, we spoke with Cassie Whitlock. Below you’ll find her answers to our questions, followed by a list of resources you can turn to for more help.

A lot has changed over the course of the pandemic. How have your plans for reopening the BambooHR offices evolved since we first shifted to working from home last spring?

CASSIE: Initially, the focus was on the general steps necessary to return to the office. Now, we recognize the bigger opportunity of intentionally defining office and remote work and how to enable success under a dual-environment model. While not all businesses have the options of remote work, we can use this opportunity to focus on communication, collaboration, and further enabling employee success. At BambooHR, we’re defining our dual-environment success strategy and outlining a phased, team-based approach of returning to the office.

Is the process of reopening a business after COVID-19 different for small and medium-sized businesses than it is for larger organizations? What unique challenges do SMBs face?

CASSIE: Yes, there are differences based on company size, but there are also unique needs based on team function and potentially individual needs. With fewer employees, SMBs may have an easier transition in some ways, but at the same time they have fewer people and resources available if they discover gaps in their plan or something unexpected happens. This requires better planning with more communication. To ensure your plan is successful, you may consider a dry run to identify helpful adjustments.

Link: SCORE survey

How should a company decide when it’s the right time for returning everyone to the workplace after COVID-19? And should everyone who’s returning come at the same time?

CASSIE: There’s no one-size-fits-all answer. Deciding on the right time should include evaluating three key business aspects:

• First, the impact on business outcomes with special consideration for unique or seasonal timing. Consider factors of workload cadences, dependencies, and up-stream/down-stream impacts.
• Second, resource limits. For example, it would be impossible for my IT team to onboard all 700 of our employees in one day. This means it will likely be difficult to bring back all 700 employees in one day. There will be unplanned needs for resources.
• And third, individual readiness. Depending on the status of the pandemic, individual employees may have personal concerns or issues. Make sure you stay in tune with employee needs and communicate your transition plans early. Leave time for employees to give feedback or share personal constraints.

With the widely seen success of working from home during the pandemic, will more employers and employees embrace it in the future? What are the pros and cons of more employees working from home?

CASSIE: The question of embracing remote work really boils down to maintaining or elevating success. Just like with a business product, if it takes more money to create a product than you can sell it for, you won’t remain viable. This means leadership, teams, and individuals each need to do their part for remote work to sufficiently benefit the business.

Remote work can benefit focused work but may inhibit collaborative work. Company culture and employee engagement will continue to be of prime concern with remote work post COVID-19. Intention and innovation are essential for culture and more so under remote work conditions.

Will your organization be ready to weather the next crisis?

How can companies prepare their employees for returning to the workplace after covid-19.

CASSIE: Start with early communication, gather feedback , and leave room for iterations prior to launching your plan. My favorite idea is a journey map: a one-page document that helps each employee know what steps they need to take as they return to the office. Simple, easy to follow, with a clear outcome of energized, focused work.

What should an employer include when developing a comprehensive workplace plan for dealing with COVID-19?

CASSIE: The U.S. Centers for Disease Control and Prevention (CDC) is a prime resource when you’re setting up or revisiting your COVID-19 policies. Your plan should include:

• Employee education
• Office hygiene practices
• Facility evaluation and maintenance
• Screening processes
• Testing and reporting
• Contact tracing

To promote workplace safety, what role should testing and screening play in reopening a business after COVID-19?

CASSIE: Testing requirements really depend on the unique factors of your business. At a minimum, employees should complete a daily screening. You can get creative about how this is done, but it’s your best proactive measure for minimizing or eliminating potential workplace COVID-19 exposures.

Many leaders and HR professionals are currently discussing how we can influence pandemic-related employee choices and behaviors off the clock. This is a tricky area, but in all situations, employee education can be helpful. Make sure your employees have access to guidance and information about how to limit their COVID-19 exposure.

What about visitors to the workplace? What should employers consider as they decide whether visitors will be permitted and what safety protocols they must follow?

CASSIE: The company has the responsibility to provide safe working conditions for its employees and general protection and safety for visitors and patrons. With that in mind, aligning safety practices for both groups simplifies matters and creates self-sustaining momentum. Communicate early and often so everyone knows what to expect.

Have you seen all the cool stuff BambooHR can do for you?

How do you expect employees’ mental and emotional health needs to change as they return to the workplace what can employers do to meet these needs.

CASSIE: Getting back to “normal” post COVID-19, or just having a consistent workplace routine in the interim, can minimize stress and distraction. Emotional and mental health will continue to be an important lens of employee wellbeing. Employee assistance programs will continue to be important in benefits offerings, but we can also be more creative about supporting emotional and mental health. Start by talking with employees to understand their needs.

How should employers decide when and how to resume business travel?

CASSIE: Decisions about resuming business travel are another issue that doesn’t have a one-size-fits-all answer. Each organization can make a good decision by evaluating travel using the same three factors I recommended for deciding when to have employees return to the workplace:

What if an employee isn’t comfortable returning to the workplace after COVID-19? Or what if an employee refuses to comply with company requests to be tested or vaccinated?

CASSIE: There are ongoing regulatory changes that will influence what employers can do here, but the foundational principle will likely stay the same: generally speaking, an employer can prohibit an employee from being at the worksite if they pose a threat to safety or health or otherwise can not meet policy requirements.

• Impact on business outcomes
• Resource limits
• Individual employees’ readiness

An employee can be terminated for lack of compliance with company policies…but should an employee be terminated for refusing to be tested or vaccinated? That is a tough question to answer. You should consult with legal counsel in determining how your organization will address this.

How can organizations avoid common mistakes in reopening their business post COVID-19?

CASSIE: I don’t think it’s realistic to expect to have a flawless plan. Instead, we should focus our energy on building a solid, comprehensive plan and then incorporate a back-up plan. Use your business network to enhance your plan: your industry peers are grappling with the same issues, and you can work together to effectively address health and safety as you reopen your work site.

Prepare Now for a Brighter Future

In addition to Cassie’s advice, here are a couple of additional points to keep in mind as you work to develop your post COVID-19 reopening plan:

• Every organization is different. This article provides important information that most organizations can benefit from, but you may face additional challenges that are unique to your circumstances. As a foundational part of your plan, commit time and resources to identifying these unique challenges and developing effective strategies to overcome them.
• COVID-19 is a moving target. Conditions surrounding the pandemic continue to evolve. Chances are your plan will need to evolve too. Even when conditions improve, continue to seek the most current information about pandemic requirements and recommendations from the CDC and your local and state health departments.

As you develop and implement your plans to move forward, your organization may well find that it has changed forever—but that’s not necessarily a bad thing. Solutions and innovations that COVID-19 forced you to create may leave your firm stronger and better positioned to compete in the post COVID-19 business environment.

Having a sound, comprehensive plan in place for reopening your business after COVID-19 and resuming normal activities will not only help ensure your organization’s future success, it will help leaders and employees move forward with renewed peace of mind. After everything we have all been through during the pandemic, regaining a sense of inner peace may be the most coveted benefit of all.

Helpful Free Resources for Reopening Your Business After COVID-19

Bamboohr: what post covid-19 will mean for hr departments.

An in-depth look at expected changes affecting benefits, hiring , company culture, and more.

CDC: Resuming Business Toolkit

Includes an exhaustive checklist for preventing and reducing virus transmission, continuing healthy business operations, and maintaining a healthy work environment. Also features a worker protection tool that helps you choose the most appropriate protective measures for your workplace.

OSHA: Preparing Workplaces for COVID-19

Discusses steps employers can take to protect all workers, then explains how to classify the risk level(s) of your employees and take additional protective measures that are tailored to their needs.

CDC: COVID-19 FAQs for Workplaces and Businesses

How can you reduce the spread of disease in your workplace? What should you do if an employee is diagnosed with COVID-19? How do you know if your business is considered critical? Find simple, straightforward answers to many common COVID-19 questions facing businesses.

Faegre Drinker: Question & Answer Employer Guide: Return to Work in the Time of COVID-19

Answers dozens of questions that employers should keep in mind to help ensure a smooth reopening process, including thorny legal issues that require careful attention.

Mom always said we should have studied law or medicine, but we didn’t listen. So, it’s important to tell you that although BambooHR always strives to provide accurate information, nothing in this article constitutes legal or medical advice. For that, seek qualified professionals (who undoubtedly made their mothers proud).

The best way to rebuild business resilience post-COVID-19? Lean into uncertainty

Safe reopening of businesses and nations involves enormous questions spanning public health, the economy and society Image:  REUTERS/Gonzalo Fuentes

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Stay up to date:.

• Salesforce has devised three scenarios for the next 18–36 months that organizations can use to plan their crisis response to COVID-19;
• An interplay of uncertainties will determine when and how countries and businesses reach a next normal;
• Understanding and leaning into these uncertainties is one way leaders can prepare for the next normal and rebuild resilience.

Uncertainty is my stock-in-trade. For nearly 50 years and most recently as the head of strategic planning at Salesforce, I’ve looked at how the future might play out, identifying critical areas of uncertainty to help businesses and government leaders navigate risk and make better decisions. In all that time, I’ve never seen uncertainty like that arising from the COVID-19 pandemic.

Have you read?

How are companies responding to the coronavirus crisis, covid-19: 3 ways businesses can find growth opportunities during the crisis, how to build sustainable business leadership in a post-covid world.

For organizations seeking to stabilize their businesses and communities and rebuild growth and resilience, the unknowns are profound. Safe reopening involves enormous questions spanning public health, the economy and society: how long will our twin health and economic crises last? When can we move from crisis mode back to work? What will the next normal look like and how can we see the signs for change early enough to act quickly when the time is right?

Salesforce is working hard to apply its products and expertise to help all of us navigate these uncertainties. We recently created Work.com, for example, which includes new technology solutions, such as contact tracing, and other resources to help businesses and community leaders around the world reopen safely, re-skill employees and respond efficiently on the heels of COVID-19.

In turbulent times, futurists often reach for a powerful tool: scenario planning . With a team of experts spanning industries and regions at Salesforce and beyond, we’ve come up with three broadly applicable scenarios for the next 18–36 months that organizations can use to plan their crisis response journey.

Mapping the crisis in three phases

As a first step, we looked at the global public health, economic and socio-political dimensions of the crisis. The situation is different for different nations and regions. Nonetheless, when and how any region or country reaches a next normal will generally depend on how the virus and economy behave there and how people respond as a society.

Next, we took those dimensions and mapped their evolution across three distinct phases. For instance, nearly every country first experienced a “losing control” phase, where the virus emerged and took everyone by surprise. Some places, such as Taiwan , responded swiftly, while others, such as North Korea and Tajikistan , took much longer to acknowledge a need for any virus suppression measures.

Nearly every country has now moved into a more structured crisis response mode, aiming to control the virus’s growth through measures like lockdowns, social distancing, border closures and contact tracing. In many places, this second “hammer” phase, to borrow a phrase from Thomas Pueyo’s influential article , has been quite successful — take New Zealand , for instance, along with Vietnam and Hong Kong . In other places, such as Yemen , there may still be a long way to go.

Critical uncertainties defining the next normal

More recently, a third “reopening” phase has started to take shape as countries seek to safely end shutdowns, stabilize economies, and hasten growth. In our model — again following Pueyo — we refer to this phase as “the dance” because it will likely involve us doing the quickstep with the disease, reopening but then potentially shutting down to keep infections under control. Already, we’re seeing wide variations in some of the places looking to reopen. In the UK, for example, along with some US states, infection curves have not yet been hammered down. In others where the virus has been suppressed, the risk remains that it will reappear.

This third phase is what will give shape to the next normal. To understand what that might look like, we worked to identify seven critical uncertainties that have emerged along with the virus. For example:

• How timely and effective will suppression be?
• Will healthcare capacity cope with the peak and beyond?
• How will we go back to work, within and across countries?
• How quickly and broadly will the economy recover?
• What are the economic costs of the shutdown and how successfully will they be mitigated?

Three paths to the future

Crucially, it’s the interplay of these uncertainties that will determine when and how a country reaches a next normal. Analysing that interplay, three different paths to the future emerge, each representing a crisis of a different depth and duration.

1. The most optimistic scenario assumes that things go mostly right: people maintain social distancing, the virus does not return later in the year, immunity persists and economic policy is effective. Re-opening begins in mid-summer, allowing a path to the next normal to begin by spring 2021 and a vaccine arrives enabling the economy to return to growth

2. In the second scenario, the virus persists and a second wave resurgence in the winter requires another lockdown, causing a much more severe economic recession. A vaccine is available by mid-2021, signalling reopening and steps toward the next normal.

3. In the most pessimistic scenario, the virus resurges in a giant second wave, as large as what we’ve seen in the worst-hit areas to date. The lengthy lockdown that is required leads to a long and deep recession with profound societal impact. With no vaccine becoming available, no new normal arrives. Instead, a “COVID normal” emerges, with continuing waves of the virus, persistent economic uncertainty and deep societal unrest.

Business and government leaders can use the axes we have developed in our scenario planning materials, layering in details of local dynamics and policies in response to each of our seven critical uncertainties, to help them think through how the next normal may play out in their specific situations.

Designing a better future

Leaning into uncertainty is one way leaders can prepare for the next normal. We have a unique opportunity to learn from this pandemic and intentionally design a better future.

During the crisis we’ve already started reinventing how we work, learn, shop, socialize, operate our health systems and even govern through innovative technologies that allow us to operate remotely. What more can we do remotely, so we don’t have to travel halfway around the world for a one-hour meeting? How can we rethink our supply chains to make them more resilient in the face of disruptions like this pandemic? There are so many interesting questions to explore.

To make those sorts of changes, however, companies will need the enabling foundation of a digital transformation. They will also need increased openness to dealing with ongoing uncertainty and change. Those that undergo that transformation and are willing to think creatively and adapt will be in a stronger position to succeed in the next normal.

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World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

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US small-business recovery after the COVID-19 crisis

The unique nature of the COVID-19 crisis poses a new set of challenges for US small businesses as they claw their way toward recovery. Many face muted demand, new customer expectations, and operational challenges because of health and safety restrictions. Recovery will take time. After the 2008 recession, larger companies recovered to their precrisis contribution to GDP in an average of four years, while smaller ones took an average of six. 1 Kathryn Kobe and Richard Schwinn, Small business GDP: 1998–2014 , US Small Business Administration Office of Advocacy, December 2018, advocacy.sba.gov. How long it takes in the current recession will depend on both economic vulnerability to the COVID-19 response and the prevailing macroeconomic outlook in their respective industries. Across all businesses, that could take five years or longer under two scenarios that McKinsey Global Institute and Oxford Economics have modeled and that more than half of global executives surveyed see as the most likely to unfold (Exhibit 1). 2 McKinsey survey of 2,174 global executives, June 1–5, 2020. Among small businesses, recovery is again likely to take even longer. Many may never reopen.

Many small businesses in the United States will need to make extreme changes to survive. The broad themes are, by now, familiar and generally the same as with most large businesses: protecting the health and safety of employees and customers, adapting business models, investing in talent and technology, and adjusting staffing models and labor practices. But like Ginger Rogers, who danced the same steps as Fred Astaire, only backward and wearing high heels, small businesses will need to make all these changes at greater relative cost and with less working capital. Small businesses with slim margins have little room to invest in the business models and technologies that they will need to survive. It will take collaboration across the economy to keep them afloat.

This article covers the unique challenges and opportunities for recovery in three critical sectors: manufacturing, retail, and restaurants. Taken together, these sectors account for approximately 30 percent of small-business jobs in the United States. And while these sectors have distinct characteristics, much of their experience can be extrapolated to other sectors.

Facing pressure on already-slim margins

Many small businesses across sectors came into the COVID-19 crisis with low financial resilience . Among respondents to our survey, close to a third were operating at a loss or breaking even prior to the crisis. 3 McKinsey COVID-19 US Small and Medium-Size Business Financial Pulse Survey, May 5–12, 2020. The sample of 1,004 respondents covers a representative range of industries (North American Industry Classification System 2) and states. This article focuses on employer small businesses with at least one but fewer than 500 employees. EBITDA 4 Earnings before interest, taxes, depreciation, and amortization. margins are typically below 5 percent for small retailers selling staples, such as groceries, and below 10 percent for those selling discretionary items. Balance sheets for small businesses in manufacturing, retail, and restaurants also lack flexibility, since a significant portion of the costs for small businesses in those three sectors are relatively fixed. Occupancy costs, for example, are especially so for smaller businesses, which often lack the market power to renegotiate the terms of their leases. Along with fixed occupancy costs, small retailers have less flexibility in managing the material amount of cash tied up in maintaining inventory. It isn’t uncommon for clothing stores to carry 90 days’ worth of sales in inventory, which creates significant pressure on margins when inventory is seasonal, inventory has an expiration date, and customer demand is volatile.

Many small businesses across sectors came into the COVID-19 crisis with low financial resilience.

Small manufacturers, whose working capital tied up in inventory often adds up to 20 percent of sales, also have the added cost of servicing their debt. They tend to rely heavily on financing for their investment and working-capital needs—and indebtedness is high. Our survey of more than 1,000 small businesses suggests that the cost of servicing their debt is, on average, 30 percent of revenue for small manufacturers, 11 percentage points higher than for more financially resilient industries, such as high-skilled professional, scientific, and technical services. The overall sector could take longer than five years to recover to precrisis GDP levels, depending on the economic impact of the COVID-19 pandemic. And their experience could be illustrative for other industries with high capital intensity, such as transportation, warehousing, or natural-resource extraction.

Restaurants, too, face margin challenges. A shift to a more off-premises world—delivery or carryout—is likely to erode their profitability by increasing packaging costs and hindering their ability to sell high-margin items, such as alcohol and desserts. And many small businesses were already vulnerable before the crisis. Nearly 40 percent of small businesses in the restaurant sector operate at a loss or just break even, according to our survey. And any increased costs for accommodating changed expectations would come with a bigger hit on relatively slim operating margins (Exhibit 2).

In manufacturing, retail, and restaurants, the added cost of complying with new hygiene and safety protocols could be onerous. The cost of cleaning supplies and disinfectant wipes—which more than half of restaurant customers now expect to be provided—are less likely to be negotiable for smaller businesses, which are less likely to qualify for the bulk-pricing discounts available to larger ones. The same is true for smaller retailers and, more generally, for most customer-facing small businesses in other industries, including arts, educational services, entertainment, and recreation. Small groceries would need to invest approximately 1 percent of their revenues to cover the cost of additional labor and cleaning products. And space constraints will make it harder for independent retailers than larger retailers to carry out required physical distancing.

Revenues, too, are at risk. A weekly survey conducted by the US Census Bureau found that nearly 50 percent of manufacturing companies are reported to have experienced a decrease in revenue in the first week of June 2020. In a recessionary environment, we anticipate consumers to curb their spending on nonessential goods and services: the same US Census Bureau survey found that two-fifths of retail companies experienced a decline in revenue at the start of June. For restaurants, capacity is a particular issue. In many states, such as California, Florida, Illinois, Michigan, and Texas, official return-to-work guidelines for food-service establishments require tables to be separated by at least six feet of physical distance. The smaller the restaurant, the more significantly such restrictions will limit the number of customers that can be served. Even an average medium-size restaurant typically needs to operate at 75 percent capacity to break even. And while some cities are cutting red tape to allow restaurants to set up tables on sidewalks and public squares, such moves aren’t always welcome by the neighbors and may affect local tax revenues.

Adapting new business and operating models

Navigating the current crisis and thriving in the next normal will require significant changes in business and operating models for all businesses. Since early in the COVID-19 crisis, around 60 percent of restaurants in the country have added curbside pickup, and more than a third of consumers who have ordered food for in-store or curbside pickup were first-time users of the service. Independent retailers have also innovated rapidly to adapt to the new environment. Retailers that were deemed essential, especially grocers, began offering curbside pickup, limiting the number of customers in their stores, adjusting their hours, and sometimes creating special time slots to cater to the most vulnerable populations. To further maintain physical distance, many experimented with new payment methods and apps. Retailers that were deemed nonessential—those selling apparel, for example—experimented by rapidly uploading products to their e-commerce websites, offering free delivery, and extending return policies.

Yet sustaining such actions in the medium term could be difficult, especially for small businesses. Large restaurants can make changes to operating procedures  and marketing techniques to return to stability—but such changes can be onerous to smaller ones. Operationally, small restaurants and retailers alike could adapt by increasing promotional activities, offering temporary price reductions, adjusting their product mix or menus to focus on high-value items, and potentially renegotiating terms with their suppliers to preserve their margins. That, too, will be easier for larger chains with deeper marketing resources and the ability to run data-driven promotions. Larger retailers may be able to increase promotional activities and take a margin hit to attract and retain customers, clear their inventory, and free up working capital. In apparel, for example, our analysis suggests that 56 percent of available products at US fashion retailers at the end of April 2020 was offered at a discount, nine percentage points higher than the same time in 2019. But smaller retailers, which have less financial flexibility, may not be able to compete on price and promotions.

Factories will also need to adapt to address the operational challenges of meeting health and sanitation requirements. To protect employees, the manufacturing floor must be rethought to allow distance between workers. Factories may need to experiment with a “pod” system , assigning operators to fewer machines but giving them greater responsibility for tasks within their work areas. Such a system can reduce contact with staff and equipment outside the pod. Both modified physical infrastructure and optimized operating procedures that limit the number of individuals each employee must interact with will help meet physical-distancing guidelines. In many cases, workers will also require additional personal protective equipment and regular health testing, including temperature checks prior to entering the building.

For small retailers, a refreshed business model could help with adapting to changing consumer behaviors. Millions of consumers are up for grabs. Disruption in the marketplace, whether driven by supply-chain challenges or by changes in shopping behaviors, have led 15 to 20 percent of consumers to switch stores. About half of those who switched report that they are planning to continue using their new store, according to our US Consumer Pulse Survey . But customer behaviors may also put small retailers at greater risk: customers are taking fewer trips but increasing the size of their baskets. That favors one-stop shops, such as big-box stores, and could be detrimental to smaller retailers that offer a more limited selection of products. To compete, smaller companies may need to find new ways to differentiate their value proposition: focusing on “hyperlocal” demand trends, competing on service quality instead of price, or building customer loyalty through marketing campaigns that engage the local community.

Tracking US small and medium-sized business sentiment during COVID-19

Adopting new technologies.

The most effective way for small businesses to meet new hygiene and safety expectations is to design effective contactless experiences. For example, the restaurants that have fared better since the onset of the COVID-19 crisis have often turned to their digital capabilities and investments in technology to reset their channel mixes to increase takeout and delivery, build loyalty by enabling customers to order through their first-party apps, and increase the flexibility of their supply chains. An international restaurant group managed to keep a majority of its US restaurants open during the crisis by serving food through drive-through, delivery, and takeout channels. New menu items even drove a net increase in sales for some of its brands in the first quarter of 2020.

Among retailers, too, those that have performed well since the beginning of the crisis were those that leveraged their superior digital capabilities. Target, for example, saw comparable store sales grow by more than 10 percent in the first quarter of 2020, reflecting a 141 percent increase in digital sales, while physical-store sales rose less than 1 percent. While the barriers to sell online are low, competition from large retailers is also fierce. Software-as-a-service tools and platforms such as Amazon, Etsy, and Instagram make it relatively simple to reach customers and sell online. Even those digital options come at a cost to operating expenses, such as the expense of taking professional product photographs, as well as the costs of strong back-end order processing, seamless logistics for delivery and returns, and high standards of customer experience.

For many small businesses, adopting new technology will require significant changes. In manufacturing, for example, the scale of the necessary digital shift  is massive. Between 40 and 50 percent of US manufacturing assets will require upgrading for digital readiness—and the transition may come sooner now that the COVID-19 crisis has disrupted the sector. Additionally, other tech investments, including digital training courses for workers and digital floor walks and performance-management tools to reduce in-person check-ins, may become necessary. Because smaller, lower-tier supplier businesses are the least technologically enabled today, much of the potential gains from digital adoption in the sector lies with them.

Searching for solutions

One thread that runs through all of the challenges is that smaller businesses seldom have the resources to make significant investments, which all solutions are likely to require. Even if business-model changes and new technologies offer small businesses an avenue toward survival in the post-COVID-19 world, many lack the capital, people, and access to technology that their larger counterparts enjoy. It will take innovation and participation from across the economy to help small businesses thrive.

Here again, small businesses are challenged  compared with their larger counterparts. Less able to invest in equipment and facility upgrades, small and medium-size manufacturing companies have about 40 percent lower productivity relative to large businesses. Operational modifications are costly—particularly when significant changes to a factory layout are required—and small businesses have limited cash on hand to invest in such changes. For those that are unable to fund necessary safety modifications immediately, operating at partial capacity, which carries its own cash-flow implications, may be the only viable option. Among small manufacturers, two decades of revenue growth at roughly one-fifth the pace of larger manufacturers make smaller businesses less attractive than larger ones to investors (Exhibit 3). Without capital inflow, small manufacturers will find it difficult to fund the upgrades needed to bring their production lines into the modern era of tech-enabled manufacturing.

Some market-based solutions already exist. For example, independent restaurants might digitize their businesses by using aggregators to increase their visibility, reach potential diners, and outsource their delivery. Factories might use tech-enabled “digital twins” to simulate factory operations under changing operating conditions. Upskilling workers via digital curriculums to give them the capacity to flex into more roles can also help mitigate risk. New innovations could go even further to help small manufacturers build out their digital lean tools or to help retailers digitize their call centers. Aggregators, for example, often charge a commission of up to 30 percent for independent restaurants, while some national chains have been able to negotiate a much lower commission of 5 to 7 percent.

Beyond small businesses’ ingenuity to adapt to newer business models, they may find support elsewhere. Large companies can play a significant role in supporting small suppliers, customers, and service providers. Large tech companies might, for example, offer free online-advertising credit. Aggregators might help by offering additional onboarding support or spotlighting small, independent restaurants on their platforms. Large manufacturing businesses may find that they are well positioned to provide demand guarantees to smaller companies, assist in technology and productivity diffusion, and deliver capital financing. Large companies often depend on small businesses as lower-tier suppliers, so financial fragility constitutes a longer-term supply-chain risk for large manufacturers. Bringing US small businesses into the digital age would be valuable to all parties, as it would improve efficiency and strengthen the domestic supplier base.

There may also be a role for public administrators. Some cities, such as Boston and Detroit, are already identifying business and financial resources for small businesses online and facilitating collective-buying arrangements for personal protective equipment. Regulators may also play a role in ensuring fair business practices and guarding against predatory pricing and other moves that threaten the market share of small and independent retailers. Some combination of public and private aid may also be necessary for small restaurants, especially offering technical and financial support they’ll need to compete with larger ones that can build contactless solutions at scale.

In manufacturing, regulators might also play a role in ensuring that US small businesses have access to international markets, both as a source of demand and a way to reduce costs through imports. At the end of May 2020, two-fifths of respondents to our global Manufacturing and Supply Chain Pulse Survey  believed that manufacturing in Asia will recover within two to three months. Ensuring that smaller companies have access to those markets, particularly in a regions that are ahead on the path to recovery, can benefit smaller manufacturers with a limited domestic market.

The survival of US small businesses across the economy will require new business models and technology solutions that few have the resources to finance. The COVID-19 crisis has exposed financial frailties that have built over time, and the next normal could impose additional burdens. Adapting to such challenges will require that small businesses find new business and operating models and accelerate the adoption of new technologies. But those solutions will not be easy and will require an economy-wide effort to provide financing, restore demand, and improve small businesses’ capability and resilience.

André Dua is a senior partner in McKinsey’s Miami office; Deepa Mahajan is a partner in the San Francisco office, where Lucienne Oyer is a consultant; and Sree Ramaswamy is a partner in the Washington, DC, office.

The authors wish to thank Austin Baker, Rushan Guan, Neha Jain, John Moran, Steve Noble, Dave Rosin, Jake Silberg, Yohann Velasco, and Kumar Venkataraman for their contributions to this article.

This article was edited by Dennis Swinford, a senior editor in the Seattle office.

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Back in Business: Marketing Strategies After COVID-19

2020, a year like no other, brought about profound changes in our daily lives. Stay-at-home mandates, enforced to promote the health and safety of communities, resulted in the massive disruption of businesses of all sizes. While made for the greater good of society, these changes to business procedures and practices left many organizations in vulnerable positions during the economic downturn of the COVID-19 pandemic.

Even as things progress for the better, it is safe to say that, in 2021, things have not reverted to “business as usual.” There are, and will undoubtedly continue to be - lasting effects across social, economic, digital, and behavioral aspects of life.

The significant lifestyle changes that resulted from COVID-19 protocols, such as remote work, at-home schooling, and even curbside pick-up, contributed to the development of new social values and trends in online behavior and consumer preferences.

Businesses and their marketing teams can leverage these insights to revise and optimize their digital marketing strategies. Evaluating, or reevaluating, your consumers’ behaviors and actions will help ensure that your marketing efforts are relevant and set up to produce a positive ROI.

Approaching a post-pandemic marketing strategy might seem like a daunting task, but we can learn a lot from 2020. Businesses should be asking strategic questions, like:

• What are the most important takeaways from the pandemic?
• How should we account for changes in behavior in our marketing planning?
• How has the marketing landscape changed over the course of the pandemic?

Key Marketing Trends Your Business Needs to Implement Post-Pandemic

To help you develop an effective digital marketing strategy post-pandemic, consider the following key trends and considerations your organization should adjust and implement.

1. Consumers Have New Expectations

One of the most noteworthy takeaways from the pandemic is the acceleration at which traditionally in-person behaviors and actions transitioned online. Without question, an upward trend in digitizing business to consumer relations was already in motion pre-pandemic, but COVID-19 regulations forced businesses to extend their online offerings to remain accessible to consumers - and to get online if they were not already.

Regardless of industry, businesses have had to adjust their practices, whether that meant event companies developing virtual events, brick-and-mortar retailers implementing online ordering and curbside pick-up options, or colleges and universities creating virtual campus tours and admission sessions.

For many organizations, adapting to COVID-19 restrictions out of necessity set a new standard and opened up possibilities for online interaction and engagement that hadn’t existed before.

But what does this mean for businesses post-pandemic?

Consumer expectations and demand for digital experiences are increasing . This means businesses must leverage data and put technology at the forefront of their marketing plans. Tech-savvy consumers are fully aware that companies have access to personal information and online behaviors, which means they’re also expecting relevant ads and personalized experiences. Be sure you are engaging appropriately throughout their customer journey.

To simplify and automate many aspects of this process, your business should consider investing in a customer relationship management (CRM) tool that collects first-party data about your consumers and how they’re engaging with your brand. Using a CRM tool that aligns with your business and marketing goals will be instrumental in providing consumers with experiences that align with their personal motivations, goals, and behaviors.

Even as it slowly becomes permissible to gather for in-person events, consumers have grown to appreciate the accessibility, flexibility, and convenience of online and digital experiences. It’s evident that consumers will continue to demand these options, so your business must be prepared to meet the needs and expectations of their consumers or risk falling behind.

2. Prioritizing Your Brand Experience

Consumers appreciate transparency, and that’s only been highlighted by the pandemic. Your organization and its overall brand should feel empowered to highlight the measures it took to promote the health and safety of the community, both with internal employees and with external customers (if this applies to your business).

Research conducted by EY demonstrates that factors like sustainability, trust, ethical sourcing, and social responsibility are increasingly important to how consumers select their products or services. At times, these factors are often of greater importance than convenience and price. In addition to the pandemic, other monumental social and political events in 2020 resulted in shifts in social values and behaviors. Authentically communicating your brand values and organically integrating them into your content and messaging will help your brand resonate with audiences and create an improved brand experience.

3. Content Marketing Opportunities

Throughout the COVID-19 pandemic, people have been spending significantly more time online. While brick-and-mortar establishments were closed for a period of time due to federal and state-level restrictions, consumers took to the Internet to find online resources that would replace their in-person behaviors and experiences. This included consumers searching for instructional “how-to” videos and other at-home tutorials, as well as registering for virtual events. There is an opportunity here to extend the value of your brand to customers by refining your content marketing strategy.

Consider using this newfound data to create or optimize website content or use new marketing channels to promote what’s relevant to your consumers or aligns with what they’re searching for and engaging with, such as the aforementioned tutorials. Pioneering a new content marketing approach can help promote brand awareness and contribute to a more sophisticated and unique brand experience.

As you adjust your content strategy and marketing and communication efforts, keep in mind that your brand’s voice should be consistent across channels to provide a unified brand experience for users.

4. Focus on the Customers You Already Have

The pandemic left many companies in vulnerable financial positions. In anticipation of lost revenue, some organizations looked to decrease costs. For many businesses, the marketing department was among the first to experience budget cuts.

If your team has been working within limited budget constraints, consider adjusting your marketing strategy to focus on customer retention and loyalty.

Rather than investing in brand awareness campaigns to attract new prospects, market to current customers and contacts - the folks who have already engaged with or expressed interest in your brand. One way to do this is through remarketing campaigns. For example, use the first-party data captured by your CRM tool to deliver relevant messages to consumers respective to where they are in the customer journey. Retargeted ads can produce a good return on investment, too. They have higher conversion rates and a click-through rate 10 times higher than a typical display ad.

As your marketing budget increases, you can layer brand awareness campaigns back into your marketing mix to attract new consumers and extend the visibility of your brand.

5. Make the Most of Your Data

During times of uncertainty, data can serve as your guide in making well-informed marketing decisions. Your team should leverage analytical and research tools, such as Google Analytics and Google Search Console, to gain insights into your users’ behaviors and understand where your traffic is coming from.

With users spending more time online than ever before, it is essential to invest in search engine optimization (SEO) to heighten your search visibility. While SEO might already be part of your marketing efforts, there could be important shifts to be aware of.

Search intent and trends change over time, and that has clearly been the case during the pandemic. With increased time online, coupled with other lifestyle changes brought on by COVID-19, your target users have likely adjusted their search habits and interests - and this is data your business can capitalize on.

Knowing what your audience is looking for and what search queries are driving them where is imperative to inform your SEO efforts. Use your research tools and resources to identify new search trends, high-volume keywords, and other opportunities. Keeping a pulse on what your audiences are looking for in relation to your brand and business not only informs your marketing and SEO efforts but can also be instrumental in developing new business goals and opportunities.

Resuming Business and Moving Forward

If there’s one key takeaway marketers can learn from the pandemic, it’s that customers no longer hope that your brand offers something; they expect it. Consumers have formed new expectations over the past year, which in turn requires companies to find new ways to resume business to stay relevant and successful.

As your business reopens and restrategizes its marketing efforts, utilize the aforementioned key marketing trends to optimize your business to reflect and provide what your audience is looking for. This is, ultimately, imperative to finding success post-pandemic.

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Prepare Your Company for the Next Covid Wave

• Patricia Toro,
• Jeff Levin-Scherz,
• John M. Bremen

Four actions to take now.

With more surges of Covid-19 highly likely, companies should have a plan in place for dealing with whatever the pandemic throws at them. It should include these measures: reduce restrictions as the situation allows, plan for another surge or outbreak now while cases are low, embrace remote and hybrid work, and effectively communicate pandemic plans.

Leaders of companies in the United States and many other parts of the world are breathing a sigh of relief as the Omicron BA.1 surge is in the past with higher community immunity, new effective treatments, and plentiful tests and vaccines. But with the Omicron BA.2 strain and its descendants becoming dominant and immunity from infections and vaccinations waning, the pandemic is not over and companies must be prepared for whatever the pandemic throws at them next. This article outlines four actions leaders can take now to increase the safety of their employees and decrease business disruption in the event of future community outbreaks.

• Patricia Toro , MD, is a senior director in the Health Management Practice of WTW. She is trained in infectious diseases and works with payors, providers, and employers to improve the quality and outcomes of health care delivery.
• Jeff Levin-Scherz , MD, is a population health leader of the North American Health and Benefits Practice of WTW. He is trained as a primary care physician and has played leadership roles in provider organizations and a health plan. He is an assistant professor at the Harvard T.H. Chan School of Public Health. Follow him on Twitter at @jlevinscherz .
• John M. Bremen is managing director and chief innovation & acceleration officer at WTW. He advises boards and senior management teams on complex people, risk, and capital issues.

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Best Practices for Marketing During and After COVID-19 Marketers need to proceed with caution and empathy.

By Andrew Reid • May 10, 2020

Opinions expressed by Entrepreneur contributors are their own.

A global crisis can either paralyze a marketing team or galvanize it to thrive. In the wake of the COVID-19 pandemic, that's exactly what we're seeing: some companies are cutting back on marketing (in some instances, laying off the entire marketing team), while others are being more agile and coming up with interesting ways of engaging their audience during these difficult times.

If you want to stay in business, you can't stay idle for long. As a business owner myself, I understand why many entrepreneurs would want to cut down completely on marketing activities. Being conservative feels like the safe choice when there's uncertainly about how long the crisis will last. But we have to balance financial responsibility with the need to keep consumers informed and engaged when things get tough.

Related: 5 Ways Brands Can Reinvent Their Digital Marketing Strategy

In fact, long-term studies show that the right approach during economic uncertainty is to increase — not decrease — your marketing spend . The last thing you want is to be caught flat-footed and find yourself lagging your competitors when the economy revs up again.

For the most part, consumers are receptive to some marketing at this time. A recent study from the American Association of Advertising Agencies found that 43% of consumers find it reassuring to hear from brands. In addition, 56% said they like learning how brands are helping their communities during the pandemic. Only 15% said they'd rather not hear from companies.

That said, marketing during these times requires sensitivity to what's going on in people's lives and the flexibility to keep up with swift and swooping changes.

Start with customer empathy

COVID-19's impact on consumer behaviors and attitudes cannot be understated. An ongoing study we're conducting with our sister company Reach3 Insights recently found that 76% have recently picked up new habits, behaviors and routines in the wake of COVID-19. Of those people, 89% said they plan on keeping some of their new habits. Consumers are also trying new products, with 36% planning to continue using new brands they've tried after COVID-19.

Now is not the time to rely on assumptions. Any data you have from 6 weeks ago—let alone 6 months ago—is already out of date. As the consulting firm Gartner recently advised, CMOs must be proactive in monitoring changes to customer behaviors and purchasing needs while the crisis is unfolding.

Related: 3 Tips for Marketing a Service Business

Businesses must move forward but do so with genuine empathy. Marketers can help C-suite executives take the right action by acting as a lighthouse for consumer understanding. Many companies already have existing Voice of Customer and research programs—these can be leveraged at this time to uncover the emotions underlying people's shifting attitudes and behaviors. Doubling down on customer engagement and listening programs can help provide insights on how to best move forward.

Tell relevant, authentic stories — and give, give, give

Impressively, some brands have already produced compelling campaigns that speak to the realities of the pandemic. Dove , for example, created a spot shining a light on the courage of health care workers. Some brands, like Budweiser and Burger King , are focusing on social distancing and encouraging people to do their part by staying home. One of my favorites is Sam's Club, which recently created a 60-second spot thanking its employees and calling them "retail heroes."

It's great to see creativity in storytelling at this time, but marketers must push their companies to do even more. This is the time to pay it forward and provide as much value as possible to your customers and communities.

Every organization and person has the capacity to contribute in their own way. The most important question companies should ask themselves is this: "what can I do to help?"

Giving back can take several forms. For instance, Jägermeister is hosting a virtual event to help raise funds for New York restaurant owners. In tech, companies like Apple quickly mobilized their resources to produce much-needed PPEs. In my home country of Canada, big-box retailers such as Loblaw and Save-on-Foods have increased the wages of their front-line staff to show appreciation for their efforts. Following the lead of many software companies, Nike has temporarily eliminated its subscription fees for its app to help people stay fit while quarantining.

These moves transcend marketing and may not increase sales immediately, but they'll build goodwill and help drive long-term loyalty. Giving back is simply the right thing to do. The faster the world can beat the COVID-19 pandemic, the better chance all companies have in surviving the crisis.

Be agile for the new normal

Some entrepreneurs and marketers are holding off action, thinking that things will be back to "normal" in a few weeks or months. I do not hold the same view.

Related: 4 Ways Solopreneurs Can Strengthen Their Businesses Through Marketing

For one, some scientists are predicting that some form of social distancing may need to happen until 2022 . That's a long time to put any type of marketing on hold. A more important consideration is the fact that the pandemic will have a long-term effect on the psyche and outlook of consumers. In our own COVID-19 study, 86% of Americans and 81% of Canadians agreed that the crisis will create a new normal and have a lasting impact on society.

Regardless of how long the crisis actually lasts, COVID-19 will forever change the consumer landscape. After this comes to pass, companies can't go back to their old playbooks. Personas, messaging and even your product strategy may need to significantly evolve for the realities of the post-COVID-19 world.

For various reasons, some CMOs are hesitant to engage consumers in research at this time. But as Gartner's Frances Russell points out in a recent article , many marketers who have deployed surveys specifically about COVID-19's impact on customer experience have seen actionable responses. We see this in our own research as well: Not only are people answering our conversational chat surveys, they are also providing detailed selfie videos, which is really helping us and our clients and partners understand the human impact of the pandemic.

The bottom line is that fresh data and accurate insights have never been more important. In these uncharted territories, relying on instincts alone is dangerous. If you haven't reached out to your customers in the past month, now's the time to do so.

While it's important to recognize the uncertainties and fears surrounding COVID-19, don't let this crisis paralyze you. Enabling your team to really understand your customers and act based on timely insights is key to navigating your way through this crisis both for your marketing team and your company.

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Michigan schools must plan for budget changes as COVID relief funding ends

EAST LANSING, Mich. (WILX) - Michigan schools received billions of dollars to address challenges during the COVID-19 pandemic. In a matter of months, that money will be a thing of the past.

Across Michigan, public schools are currently in the process of preparing their budgets for the upcoming school year.

Since 2021, school districts have had COVID-19 relief fund dollars to pad their budgets.

“The investments that have been made coming out of the COVID pandemic have been critical to helping students recover,” said Doug Pratt with the Michigan Education Association (MEA).

Pratt says that in five months, school districts will need to determine how to proceed when the funding ends.

“Right now, there’s just shy of a billion dollars in American Rescue Plan funding available to be spent from now until September by school districts.

Pratt says funds distribution varies by school district depending on needs and enrollment.

According to the MEA, school districts across the state invested in mental health, instructional upgrades, technology, educator wages and infrastructure.

“Like heating and cooling systems and air quality. There is one situation, a district that hasn’t spent a bulk of the money yet is in another. It could vary so much from school district to school district.”

A recent survey discovered that schools throughout the state may have to reduce staffing to pre-pandemic levels, which could impact the needs of students.

“We are looking at the data, and we’re looking at each individual district’s spending decisions, having conversations with them about what’s best for students and the educators who serve them.”

To continue making necessary and impactful improvements so schools endure once the COVID funding expires.

The MEA says if you feel strongly as a parent about any program your district recently began, please contact them and ask for the program to be continued. Visit the state’s website to find out how much funding your district has.

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How to Get Student Loan Forgiveness in 2024

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Student loan forgiveness has a mixed track record. Last summer, the Supreme Court struck down a broad plan that would’ve erased up to $20,000 per borrower. Still, student loan forgiveness is more accessible now than ever before. A handful of existing federal student loan forgiveness programs have erased $143.6 billion in student debt for 3.96 million borrowers as of March 21, according to the Education Department, with more to come this year.

The White House is currently trying to push through a narrower forgiveness ‘Plan B’ version of its failed broad forgiveness plan. The proven paths to forgiveness, however, include programs that range from income-driven repayment (IDR) plans — which cap monthly bills at a percentage of your income and forgive your remaining balance after 10 to 25 years — to niche programs for borrowers with certain loan types, jobs or school circumstances.

Here’s how to get student loan forgiveness in 2024 — and what you need to know before pursuing this path.

Check your eligibility

You must have federal student loans to qualify for a forgiveness program. Private student loans aren’t eligible.

To verify you have federal loans, go to StudentAid.gov , and try to log in or recover your account.

Next, check which types of federal student loans you have. If you have certain types of loans, like commercially held FFELP or Perkins loans, you may have to consolidate them before going after forgiveness .

Income-driven repayment

The newest IDR plan — Saving on a Valuable Education, or SAVE — is the most accessible path to forgiveness. All borrowers with federal direct loans are eligible to enroll.

The SAVE plan forgives remaining student debt in as little as 10 years if you have an original balance of $12,000 or less, and in up to 20 or 25 years for other borrowers. While working toward forgiveness, your monthly bills could be $0 per month if you earn less than $32,800 as an individual or $67,500 as a family of four; otherwise, they’ll be capped at 5%-10% of your income.

Public Service Loan Forgiveness

If you work for a qualifying government or nonprofit employer, you could be eligible for Public Service Loan Forgiveness (PSLF) . This program erases your remaining balance after a decade of repayment.

“Generally, the PSLF program is the best one if you have access to it,” says Scott Stark, a financial coach and certified financial planner at Financial Finesse, a workplace financial wellness company.

Other forgiveness programs

Outside of IDR and PSLF, your student loan forgiveness options may include:

Teacher Loan Forgiveness , if you work in a qualifying low-income school. 

Borrower defense to repayment , if you think your school defrauded you. 

Closed school discharge , if your school closed during or shortly after your time there.

Perkins loan cancellation , if you have Perkins loans and work in public service.  

State-based student loan payment assistance , if you work in health care or are willing to relocate to a new area. 

Do the math

Use the Education Department’s loan simulator to see how much debt you could get erased under various forgiveness programs and repayment plans, how much your monthly payments could be and how long you’ll be in repayment.

If an IDR plan will result in you paying more interest for a longer period or paying off your debt before getting forgiveness, then it may not be a good choice for you. (Public Service Loan Forgiveness also requires enrollment in an IDR plan.)

“It really is a case-by-case kind of thing, but generally speaking, for people whose income is relatively high compared to their student debt loads, the income-driven repayment plans can be pretty unattractive,” says Tisa Silver Canady, founder of the Maryland Center for Collegiate Financial Wellness. “It might behoove them to just stay on a balance-driven plan and pay extra when they feel it makes sense.” Making extra payments toward the principal while on a balance-driven plan — like the standard 10-year plan , which splits your loan into 120 payments — allows you to shrink your debt faster and reduce total interest costs.

On the other hand, if the math for IDR works out such that borrowers can have smaller payments and keep more of their money to reach other financial goals, pursuing forgiveness is a good option, Stark says.

Prepare for a future tax bomb

IDR student loan forgiveness is exempt from federal taxes through 2025. After that, any amount forgiven could result in a student loan tax bomb . A small number of states tax IDR forgiveness, too.

It’s important to plan for a tax bomb if your forgiveness timeline will extend past 2025. Put a small amount of money aside each month to cover your future tax bill, Stark says.

Use the loan simulator to determine how much forgiveness you could ultimately receive: Your taxable income will increase by that amount in the year you get forgiveness. In some cases, the forgiveness could push you into a higher tax bracket, which could further increase your tax burden. If the amount you have to set aside each month to cover the tax bill is larger than the amount you’d save on the IDR plan, it might not be worth it.

Loan balances forgiven through PSLF, Teacher Loan Forgiveness, borrower defense to repayment, closed school discharge and Perkins loan cancellation are exempt from federal taxation.

Change your repayment plan

If you decide IDR forgiveness is the right choice, you must switch to an IDR plan like SAVE.

To sign up for an IDR plan, submit an online application at StudentAid.gov/IDR or call your student loan servicer.

You must also sign up for an IDR plan if you’re striving for PSLF. Choose the plan that gives you the smallest monthly bill to maximize the amount you could get forgiven after 10 years. It’s a good idea to submit your PSLF employer verification form each year to stay on track for forgiveness, Canady says. You can do this through the Education Department’s online PSLF Help Tool .

On a similar note...

Student-loan borrowers could benefit from Biden's new debt cancellation plan as early as this fall. Here's what you need to know.

• Biden unveiled details for a new student-debt relief plan that could benefit 30 million borrowers.
• The new plan could go into effect as early as this fall.
• While there could be lawsuits, the White House said it's confident in the legality of the plan.

A new student-loan forgiveness plan is coming — and millions of borrowers could benefit.

President Joe Biden's administration unveiled new details for a student-debt relief proposal that could benefit over 30 million borrowers. While this plan is more narrow than Biden's first attempt for broad relief that the Supreme Court struck down , it would aim to tackle a range of issues borrowers face, including interest capitalization and decadeslong repayment without relief .

Biden formally announced the new plan during a speech in Madison, Wisconsin, on Monday, saying that even when borrowers "have worked hard and paid their student loans, their debt increases, not diminishes."

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"Too many people feel the strain and stress, wondering if they're going to get married, have their first child, start a family, because even if they get by, they still have this crushing, crushing debt," Biden said.

I said I wouldn't back down from using every tool at our disposal to get student loan borrowers the relief they need. That's why today we're announcing new plans that, if implemented, would cancel student debt for millions more. pic.twitter.com/rNiCxzzlU3 — President Biden (@POTUS) April 8, 2024

While more details on the plan will be announced in the coming months, Monday's announcement offers a fresh look into the types of borrowers that could benefit from this debt relief. Here are the key details from the administration's proposal.

Which borrowers will qualify for this relief?

The administration outlined five groups of borrowers that could benefit from this relief. They include:

Up to $20,000 in debt relief for over 25 million borrowers whose balances have grown due to unpaid interest. 23 million of those borrowers would have "all of their balance growth forgiven," per the White House.

Relief for borrowers eligible for loan forgiveness under repayment programs like Public Service Loan Forgiveness or an income-driven repayment plan but who have not yet enrolled

Relief for borrowers who entered repayment over 20 years ago. Borrowers with undergraduate student debt would qualify if they entered repayment on or before July 1, 2005, and borrowers with graduate debt would qualify if they first entered repayment on or before July 1, 2000.

Relief for borrowers with who took on debt for "low-financial-value programs," including schools that lost financial aid eligibility or were found to have defrauded students.

Relief for borrowers experiencing financial hardship . A senior administration official told Business Insider that more details on hardship requirements will be released in the coming months, but it's likely to address those who are at high risk of defaulting, along with borrowers who have other financial burdens on top of their student debt.

What is the timeline for this relief?

The administration said it expects to begin implementing this relief in the fall. In the coming months, it will publish the proposed text for the new rules to the Federal Register, after with the public will have an opportunity to submit comments on the proposals.

Is this relief legal?

This new plan results from the Supreme Court striking down Biden's first attempt at broad debt cancellation at the end of June. While the first plan used the HEROES Act of 2003, which allows the education secretary to waive or modify student-loan balances in connection with a national emergency like the COVID-19 pandemic, this new plan uses the Higher Education Act of 1965, which doesn't require an emergency but does require a lengthy regulatory process.

Senior administration officials told reporters during a Sunday press call that they believe this new plan for relief is consistent with the Supreme Court's decision, noting that the new plan differs significantly from the one the high court struck down.

Of course, the plan's legality is ultimately up to the courts, and it's likely conservative groups will launch legal challenges against the plan in the coming months. There are already ongoing challenges to some of Biden's other targeted debt relief efforts — for example, a group of GOP state attorneys general recently sued the administration over its new SAVE income-driven repayment plan, arguing that loan forgiveness through the plan is unconstitutional.

Watch: Why student loans aren't canceled, and what Biden's going to do about it

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How Tesla Planted the Seeds for Its Own Potential Downfall

Elon musk’s factory in china saved his company and made him ultrarich. now, it may backfire..

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When Elon Musk set up Tesla’s factory in China, he made a bet that brought him cheap parts and capable workers — a bet that made him ultrarich and saved his company.

Mara Hvistendahl, an investigative reporter for The Times, explains why, now, that lifeline may have given China the tools to beat Tesla at its own game.

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Mara Hvistendahl , an investigative reporter for The New York Times.

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A pivot to China saved Elon Musk. It also bound him to Beijing .

Mr. Musk helped create the Chinese electric vehicle industry. But he is now facing challenges there as well as scrutiny in the West over his reliance on China.

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