It’s safe to say that 2020, thus far, hasn’t gone as planned. While the Novel Coronavirus may be extremely harmful to the elderly and those with a weaker immune system, it’s has led to businesses having to close their doors as they are unable to operate, in turn, also badly affecting the economy.
Businesses are experiencing a massive drop in production. This is because many employees have fallen ill, have to stay at home as they’re unable to work due to the current level, or sadly lose their jobs or experience pay cuts. These issues can hurt a business’s bottom line, as these times are challenging for employees and can create stress and demotivation. It’s, therefore, vital for small business owners to find effective ways to relieve the financial stress of this pandemic.
Here are six effective ways to relieve the financial burden’s caused by the virus:
This infectious virus has taken the world by surprise, and people across the world are trying to adapt as best they can. Consumers are stockpiling on essentials and are in panic mode. And, unfortunately, if you do not sell an essential good, you may be the last business on their mind. This is why you need to monitor their behaviour and see how you can use it to your advantage. This will give you an idea of what South Africans are thinking, and how you can utilise those findings to bring in sales for your business. For instance, people are afraid to leave their houses, so why not incorporate a delivery option or start a new product that they need that can be delivered. That way, you’re offering an essential, and you won’t have to let people go or close your doors. Thinking or seeing opportunities even in the midst of a pandemic is what will keep your doors open for the long run. And, monitoring your customers’ behaviour might be the exact thing that pushes you to the next opportunity.
Things are changing fast, and it’s still unclear as to when things will go back to “normal”. Even post coronavirus, it will take time for business to boom again, so you will need to cut back on expenses.
Take a moment and think about how you can cut company costs, and how you can find processes which are cost and time-efficient. You can use technology to your advantage. If your employees can, and are able to work remotely, make use of that option during this time so that your business can still bring in money. Not only are you keeping your doors open, but this is a way for you to lower your company’s utility bills. Sit down with your finances and take a look at where your money is going and where you can reduce. This is the ideal time for you to find ways which your business can cut down on costs for the long run.
Even as a bootstrap business which prefers to use their own finances, you can see that the coronavirus outbreak is making it difficult to stay afloat. Apart from government funding, you can apply for business finance. Lenders understand the financial burden which comes with this virus and, sometimes, government funding might not be sufficient, or it might take a while to receive the money. This is why applying for a business loan makes the most financial sense. You can use the business loan to stay afloat, cover expenses, seek new business opportunities or pay some of your workers. That way, your business can still grow or stay afloat even during the pandemic. So, take a moment to look for finance for small businesses; many lenders have competitive, budget-friendly rates.
If you’re struggling to stay afloat, even with business funding, it may be time for you to go into a partnership. This may be with a competitor where you start a co-opetition, which means you cooperate with your competition. Unlike before, where you always had to compete in your industry, this is a time to work together so that your business stands a chance to get through this. So, contact a competitor or a brand you wish to work with and see if you cannot bounce off ideas for a partnership, share knowledge and find ways which can help both parties survive this. If you both come up with a great business opportunity, this might change everything for your business, even post-pandemic. And, it can help bring in a completely different market.
As a small business owner, it may be difficult to strategise, especially if you have a lot on your plate. Making a business successful takes a lot of time and work, and it may be easy to miss a few things when coming up with new strategies for your company. Well, now is the time where you can strategise effectively. Use this time to plan out what you wish to improve and what you envision for your organisation post-pandemic. Whether you are ready on not, things are changing. This is the time where you find ways to build and create a sustainable business which can withstand environmental changes that may negatively impact the economy. Be the company that, takes note of your consumer and employees’ grievances, and finds ways to improve it so that your business can continue to grow.
Now more than ever, you need to market your business. Consumers have a lot on their plate, and with all the clutter online, your business can fall through the cracks. To avoid this, try and find effective ways to market your company, whilst ensuring that you are sensitive with your approach. For example, your organisation can improve or create more, consistent content, SEO, paid advertising to maintain a strong online presence and brand awareness in your industry. Be open with your customers and share with them what you’re doing during this time. This will ensure you are still on their minds. Many consumers prefer businesses which are transparent.
These are hard times for many businesses; it’s important to be proactive in ensuring your organisation survives this outbreak. Start strategising and find ways to improve your product or service during this time. When needed, don’t hesitate to seek corporate finance to help your company. And, if you continue to take it one step at a time, you will make it, and your business can only come out stronger.