Due to the sudden spread of the coronavirus, small companies were seriously impacted by 2020. The pandemic caused companies across the globe to close down the unusual situation. Small companies must also be vigilant and take the steps taken to sustain their start-ups.
Figures and estimates
Goldman Sachs estimated after surveying small companies that over 75% of small firms will not survive in the next 3 months as a result of this situation, pandemic, and lockdown situation.
- 7 million Small companies have been impacted in the US due to the pandemic.
20 million employees affiliated with SMEs have suffered directly due to the pandemic.
Industries have been affected, including recreation, transport, studying, sports, and art.
More than 95% of small enterprises have already been infected by the outbreak.
Coronavirus and Small Businesses
Global authorities have sought to adapt by releasing new SOPs to the changing situation. Governments around the world have taken many measures to promote small firms. Financial assistance for small business owners has been subject to new initiatives. There are some extraordinary policies:
- Provision of bulk defence devices for small enterprises before reopening
Free portals for small business support and advice
Act with financial institutions to endorse small business owners’ grants, benefits, and loans
Incentives and recommendations to digitize small enterprises and provide long-term funding
Encourage customer support and local shops via different platforms
How will your small company stabilize through the pandemic?
One of the most common queries for small business owners right now is how to sustain and stabilize their small business during the Coronavirus. Although the economy has been crippled due to extended lockdowns, however, there is still hope. Small businesses need to re-strategize to remain operational.
As small businesses have a lack of cash flow and money reserves, it gets difficult for them to cope in uncertain times. In this period of turbulence and confusion you should take 4 easy steps to secure your small business:
-
Communicate
It is important to connect with your clients, regardless of whether your company is product-based or service-based. During such circumstances, your clients would also be curious about how you are adapting to the current situation. If you are offering any alternate working hours or other services in the wake of the pandemic, then it is important to let the word out.
For example, multiple stores have launched their e-stores in the past few months, so you must let your customers know that you have shifted online, and they can contact you via email or website rather than giving a physical visit. Moreover, several restaurants have started providing free deliveries, take away and car dine-ins, if you are offering such services, make sure to communicate those to your customers.
The UK cleaning service Carpet Cleaning London has updated its SOPs since the Coronavirus outbreak and has used its Website as a tool for delivering consumer alerts. For the purposes of the latest alerts, many organizations have applied COVID-19 to their websites. You can also use email marketing to inform customers about the updates.
-
Alternate Services
Due to COVID19, the supply chains have also been disrupted. The import-export channels were unable to work like normal hence delays in shipments are common. If, due to any reason, you are unable to get the supply of your goods, look for alternate services that you could provide to your clients.
Look at the needs of the consumer and think critically about complementary programs. Several enterprises have begun to offer online advice, webinars, e-books, and other materials to transfer their physical services to the internet and remote services. In the last few months, at-home assembly kits have become more common. You will make the buyer happier to make the end-user and the distributor easier.
-
Time To Go Online
No matter how less of your presence was on digital media pre-pandemic, now is the time to shift online. We’ve all known the impact of technology in these last few months and how start-ups offering internet content boomed. Even once the pandemic is over, the current consumer behavior is likely to prevail and people would continue purchasing online.
Multiple meetings and online classes have been shifted towards apps like Zoom and Skype. People now tend to buy from smartphones so that they don’t have to go out. Now’s the time to make one if you don’t have a website. Begin to focus on and re-strategize the business strategy for new media marketing. Several companies are offering digital marketing services to small businesses during COVID-19 time, make use of these services to create a robust online presence.
-
Manage Your Expenses Carefully
We don’t know when the world is back to normal. The future is unpredictable. A single penny matters a lot in this time of turmoil. Therefore, you have to very carefully manage your expenditures. Shut all unnecessary costs off, and find opportunities to save as many as possible.
Figure out your source cash flow and highlight the top expenses to minimize. Pay attention to your inventory and project management during these tough times and reevaluate your finances.
Meanwhile, there are several financial programs offered by governments and banks in the wake of COVID-19. You must also look for financial funding programs and apply for the ones you are eligible to keep your business stabilized.
- Be careful about the payments and clear the dues as a top priority task
- Keep your personal and professional expenses separate
- Keep track of your expenses by monitoring your books
