The COVID pandemic has been around for more than a year now, and it has taught several important lessons to business owners. It isn’t going anywhere because the virus is still here and may hit back again. The only way to get through the situation is to stay afloat now and rebuild in the future.
Both are easier said than done, considering that the economy is struggling and more unpredictable than ever. The road could be even more daunting for small companies running on shoestring budgets.
But things aren’t as bleak as they sound. If you can see the silver lining, you will probably understand the value of these lessons. The situation is challenging, but you can use it as an opportunity to build resilience. Everything boils down to finding a strategy that helps you keep your small business afloat in a crisis.
While there is no playbook to follow, you can still find ways to make a comeback despite the downturn. Here are some tips that can help you keep your small business afloat in a crisis.
Tips that can help you keep your Small Business afloat in a Crisis
1. Prioritize business interests
If you genuinely want to sustain through a crisis, you will have to keep your business first. You may want to help your employees at this point, but you cannot do it at the cost of survival. Be prepared for some tough decisions, but you do not have a choice. A great boss may choose to support employees’ weather the downturn, but what if the business collapses?
Your employees will have no place to come back to. While it may sound controversial, you must have the survivability of your business on top of your mind. You may need to take drastic steps like pay cuts for now, but employees will eventually understand. Be authentic and transparent while conveying your concerns to them.
2. Ensure access to cash
Crisis or no crisis, cash is the fuel that keeps businesses going. At this point, you need to make sure that your company has access to cash for day-to-day operations. You may get into a rut if expenses keep piling, but receipts do not come. Finding an alternative revenue stream can keep the cash flowing during tough times.
It is equally vital to line up potential sources of capital such as personal savings, borrowing from family members, and bank loans. You may not have to use them, but it makes sense to have a backup plan if things get out of control.
3. Pay attention to the small stuff
You may have overlooked small stuff in the past, but now is the time to pay attention to everything that may affect your business. It could be something as trivial as inadequate parking or the absence of traffic access to your area. Do not forget bigger things such as ineffective advertising and poor customer support because they can hit you seriously.
Identify the bottlenecks and consider the impact they may have on the business bottom line. Addressing these issues can go a long way in supporting your survival and revival in a crisis.
4. Enhance visibility and reach
When it comes to revival after a crisis, a lot depends on visibility and reach. It requires aggressive marketing, which may not fit within your current budget. Thankfully, you can rely on Internet Marketing to ace visibility and reach without spending a fortune.
The best part is that most buyers opt for online channels these days, so an online presence is a big advantage. Start with a good-looking website where customers can get all the information they need. If you are in the e-commerce domain, it is the right time to strengthen your service offerings. You can leverage social media for a broader reach without much effort and investment.
5. Provide more value to customers
When the economy is unstable, customers often cut down on their expenses. They may even reduce consumption to save more. It means small businesses have fewer opportunities to sell their products and services. The competition makes things even harder.
The only way to stay afloat is by retaining your customers. It is possible if you offer more value for money to them. They will happily spend and stick with your brand because you give them more for less. You can even try enticing them with offers and freebies such as no-cost delivery. The strategy keeps revenues flowing and builds a loyal base for your business.
6. Realign your offering
Besides providing more value to the customer, you may realign your offering according to the current needs. Customer expectations evolve during a crisis, and it is vital to keep track of them. For example, your buyers will expect to get doorstep delivery of products instead of visiting stores even in the new normal.
Continue delivering because it may be the more viable option in the new normal. You can operate with a smaller team in the physical location. Additionally, you have to worry less about managing the foot traffic and ensuring safety for the customers.
7. Don’t compromise quality
Even as you give price cuts and offers to have the buyers stay amid a crisis, never compromise quality. Similarly, you may change product components such as size and weight to improve profit margins. It can act as a big negative for customers, and they will probably never come back.
Moreover, cutting corners can affect your reputation in the long run, which is the last thing you will want to encounter. The key is to cut costs without sacrificing the quality of the product or service. Think creatively, and you will have some bright ideas to help. For example, you can reduce the cost of packaging instead of altering the core product.
A downturn is challenging for a small business owner, and it is equally daunting for employees and customers. Survival boils down to facing it and getting through it together. Focus on consolidating long-term relationships because the economy always bounces back.
When it does, only loyal customers will come back and buy from you again. Retain them today, and you will not have to work too hard to rebuild tomorrow.
