How to reopen a closed business?
It’s common for a business to shut down for different reasons, such as natural disasters or public health crises.
According to Businessdasher.com, about 595,000 businesses close in the USA every year.
But when it comes to opening up a closed business, the biggest challenge is to know how to do so.
Business owners have to struggle with lots of difficulties before they are ready to reopen their businesses. The entire process includes lots of operational hurdles and legal compliances. If you are looking for guidance, this article should help.
How to Reopen a Closed Business?
Start with a reopening plan.
If you are reopening your business, your old customers might be happy. But what effect does it have overall on most of your customers? You must know what part of the business is getting carried forward with you in the next phase.
Start with the reasons why you shut down in the first place. Now, build your story around why you are returning and how to make up for the void in time for a smooth transition.
This includes reaching out to your old employees. Can you get back some of your old accomplices? What are your limitations for coming back?
You must also check out how competitors filled out the void your absence created in the market.
Size Up your Budget
Many businesses have to interact with their customers face-to-face to make sales. For such businesses, a shutdown due to environmental impact or accidents can damage their quarterly budget. A study by FEMA suggests that 40% of businesses shut down cannot reopen.
If you analyze your business and the events affecting the business shut down, you’ll know the dramatic events that can hinder your business. It’s best to create a plan to reduce operational costs when reopening your business. This should help you boost your profitability while narrowing down the chances for future shutdowns.
Now, you can consider a few things for a perfect and sound reopening. For example –
Does your business have any scope for reopening on a smaller scale? Do you have all the assets needed to reopen the business? It’s also critical to have a clear picture of your business finances before you reopen.
Communicate about Your Comeback
Customers of even some of the biggest global brands tend to forget the brand once the brand closes down. If you want to know how to reopen a closed business, then one of the answers is clear communication.
Let your customers know why your business was shut down and why you’re coming back. Most customers wouldn’t know that you are reopening unless you market your comeback well.
This is where all your strategies and the story you developed around your comeback comes in handy. Announce your store opening a week or two beforehand. You can also throw a reopening event and provide some discounts on your products to kickstart the sales.
If you open up your business abruptly, it’ll confuse your customers. To avoid confusion, you can start your comeback campaign through social media and through flyers. In addition, let your customers know about the store opening and closing times. Clear any confusion your customers have about the store to make your comeback smoother.
Know Your Local Laws
Reopening a Business requires you to pass through different legal hurdles. Start by understanding the legal approach to reopening your closed startup.
Not following the legal protocols for reopening your business can result in different effects. For starters, lawsuits from customers, social media backlash, and fines for not maintaining legal compliance are common.
The best approach would be understanding the legalities of the local, state, and federal governments (available on the government website). In addition, several industry-specific preparations are also required before you reopen your business front. Here are a few legal aspects to remember –
Infectious Disease Outbreak
In case your business is shut down due to an infectious disease outbreak, you have to get approval from the State’s Department of Health. These outbreaks include COVID outbreak, TB outbreak, or any similar infectious disease.
With approval, your state government or the federal government will suggest the right procedure for reopening your business. They’ll probably suggest maintaining safety measures like making your workers wear PPE kits and different protective gear.
Natural Disaster
Some businesses are shut down due to natural disasters. So, if you ask how to reopen a closed business after a natural disaster, it’s best to ask your country’s government. You have to maintain certain careful measures before you are allowed to reopen your business.
In cases where the business location is still under emergency and only emergency personnel can enter the area, you have to get special permission from the country’s government to reopen the business.
Violation of Codes
Some businesses are closed due to violations of fire codes. If you are reopening your business after violating such code, it’s best to correct your actions and pay your fine before reopening your business.
Landscaping
Many businesses leave operations temporarily since the company is working on landscaping around the business location. If that’s the case, remember not to keep any open holes on the ground around the business location.
Construction Projects & Renovation
Business owners have a duty of care toward their employees and potential customers when they are at the business location. So, if your business is going through renovation or construction, it’s best to keep the location completely shut down.
You may be under tort liability if your customers or employees get hurt because the business site is under construction. So, before you reopen your business, cut off access to the location. It’s best to keep it shut until the business location is fully ready for customers and employees to access.
Keep sign barricades and signposts outside the business location to keep the customers and employees away. Make sure there are no nails or sharp objects sticking out from the ground. Clear your business location of anything that seems dangerous before reopening it.
Employment Law Issues
Small business owners must concern themselves with how to make the safest employment. If you are planning to bring back your workers while reopening the business, look for ways to avoid lawsuits under such conditions.
As a small business owner, here are some of the employment law issues you must keep yourself updated with –
- What’s the process to keep the work environment safe for employees?
- Should employees wear PPE kits on the job?
- What do workplace policies for natural disasters include?
- What should COVID-19 policy include for employees and their families?
- The legalities of testing employees for COVID-19 or other infectious diseases.
- How does unemployment work for people who don’t want to come back to the workforce?
There are other legal considerations for employees, such as OSHA considerations. OSHA consideration includes a general duty clause. It outlines that the workplace should be free from any known hazards.
It’s also important to update the employee handbook if you are reopening your business with new policies.
Relocating Your Business
You might want to relocate your business if your lease has expired after a year of shutdown. Under such cases, you can also renew your lease. But, if a natural disaster follows the shutdown, you may have to relocate your business.
When shutting down, you must safeguard and maintain your business intellectual property. If you are reopening, you need your business intellectual properties like the logo, trademark, and more.
Wrapping Up
How to reopen a closed business? As you can see, the answer isn’t as simple as opening up the shutter of a closed candyshop. You have to think of the legal part, your comeback strategy, and your communication to the customer. You must have a team to work with you throughout the process. Make sure that you have a –
- Reopening a team that has a clear picture of your current vision.
- Have a clear financial picture of where you want to see your business.
- Always stay ready to adjust to the changing situations.
You can follow the tips provided in this article to make your journey smoother.
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