As a small business, you are probably feeling the financial crunch from the lockdowns and curfews that have restricted customers from making shopping trips. Surveys conducted by Goldman Sach reveal that most retail stores may not be able to continue operating in the next three months under the current situation caused by the COVID-19 virus.
Despite all these challenges and fear, there are ways in which your business can survive and thrive during this pandemic. You should reduce your cost of operations, continue generating revenues and participate in goodwill activities. These are the ways to save your business from collapsing and maybe thrive.
Reduce your cost of operations
If you have a brick and mortar store, then ask your landlord for a rent concession until things get back to normal. You can even negotiate with your landlord for deferred payments if you are sure the business will be running optimally in the next few months. Whatever you decide about your rent, remember that unless you ask for something, you will not get it.
You should also reduce your revenue target by 40%. Doing this ensures that you remain profitable and lower the cost of operations in your business. The rationale behind this suggestion is to think of ways to make it so your revenues are only down by 40 percent.
Reduce the amount of salary you give to your employees instead of laying them off. Some of these employees have played a big role in growing business and losing them may be tragic.
There are numerous ways to generate revenue during this period. The first one is to deliver the products directly to your clients’ homes instead of them coming to your shop. Make your phone number public so that your customers can reach you for free delivery.
You can also pre-sell your products to existing clients. If they don’t buy because they are cash-strapped, provide appealing offers such as discounts and coupons.
Look for products that you can sell online that are related to your business. If you’re in the pet products industry, then this is the best time to take your business on Amazon, eBay, and Facebook Marketplaces.
You should also be innovative and create products that your customers may also need during this period. These new products don’t have to be in your niche. As long as you sense profitability, then make those products.
Create online products such as courses and ebooks about how your existing clients can take care of themselves. The information business is booming as people are after knowledge. You may end up creating profitable side-hustle for selling ebooks and courses.
Participate in Goodwill Activities
Encourage your neighbors and friends to stay home. Remind them that they will be safe in their homes than when they walk on the streets without protection. While communicating with your neighbors, you can also inform them about your new home delivery services. If you can visit their homes, then it’s even better because you can leave your business card.
Assist people who are working in the hospital in any way you can. For example, if you bake cakes or sweets, giving health workers these products may be a good gesture. Do something that can brighten the faces of the coronavirus helpers.
Since banks are currently offering loans at a low rate, you can get a low-interest loan and offer stipends to your employees. Such acts can deepen your employees’ loyalty to the company.
There is no denying that pandemics such as the COVID-19 are bad for business. However, companies that learn to adapt to the changing circumstances are the ones that always survive and even thrive in such difficult times. Brainstorm on the ideas I have stated and decide on the best ones to help save your business.
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