The outbreak of Covid-19 continues to wreck havoc across the global economy. And, unfortunately, self-employed professionals and small entrepreneurs are the most affected groups. This pandemic situation is also forcing many small companies to shut down their business deals temporarily or permanently.
With mere cash reserves and limited sales, startups are finding it difficult to stand straight in this dire crisis. And, the more distressing part is that nobody is aware of how long this situation will last. However, as it is said, tough times will never last, but tough people do. So, instead of dwelling in pain and being exhausted, let’s dive into how you can use this time to transform your business and find opportunities in the fog.
To help you navigate the crisis, we have listed down a few powerful strategies that can help you sustain businesses
Make a financial planning – First of all, the small-business owners need to confront the situation and analyze their current financial condition to stay afloat in the business. Due to the lack of prior planning, the business owners are unable to support their own business in times of crisis. Therefore, the first step in getting out of this pandemic crisis is to do financial planning. In this planning, analyze all your income, expenses, debts, and identify - what are the fundamental costs of operating the business, and what are the unnecessary expenses that can be reduced. For instance, you can disconnect the equipment that consumes a lot of energy and is not fundamental to the company's operation right now.At a tough time like this, prioritizing the necessary business expenses will surely help your business to survive.
Attract your regular customers – While the regular business might not be going normal, but there should be room to attract your customers during this uncertainty. The whole idea behind this is to stay in the customer's minds, and as everything gets normal, they will reach you first. Thus, reach out to your customers immediately through email, Instagram, and other social media channels through quizzes, discount programs, or other such creative activities. This will enable you to keep the communication alive even if no sales are happening during this period.
Negotiate with your employees – To deal with the state of public calamity due to the coronavirus, the government has published a provisional measure that eases labor relations. Also, as a small employer, you can negotiate with your employees and prevent your business from going into the financial crisis in this pandemic situation.
Ask your employees to work from home, which is a great option if this working model suits your business. But, if your employees don't have the necessary connections for the home office, you can also opt for another alternative. That is the anticipation of vacations or the granting of collective leaves. Thus, the period without work will be calculated as a vacation for your employees, and later they need to work without taking any leaves. Remember to do this negotiation, when all steps of cost-cutting and when all alternatives are not enough to stop the crisis in your business.
Do Marketing Actions – During social isolation, many businesses close their doors, as they make no profit, and remain with products in stock. So, it is necessary to take advantage of the post-crisis period to sell the stock and generate cash. The first few months after the pandemic are essential to carry out marketing actions, such as promotions, to stimulate consumption, burn your stock, and increase your cash. However, be careful! Don't offer discounts without doing the math. Before making promotions, determine whether the promotion is viable or not.
The current situation is showing us that, even in this world of data and analytics, many circumstances are still beyond our control. Rather than blaming the situations, work smart, and you will be able to catch your breath little by little, as your business will resume growth over time.
Besides working smart, it is also necessary to have patience and optimism to overcome this situation. It is important to remember that despair will not pay your bills. It takes strategy and right executive to survive the pandemic.
Yes, together we can do this!