The virus from hell has affected more than our healthcare system, it has devastated our economy as well, and small businesses are its first victims. If you are a small business owner looking to sustain your business until the pandemic subsides, then you are at the right place. Make a note of the points listed below to keep your business from bankruptcy and ruin:
1. What is my Current Situation?
If your business has been affected by COVID-19, the first thing you should do is to assess the extent of the damage. Investigate the financial, operational, organizational, and strategic aspects of your business. Once you can identify your situation accurately, only then can you move towards a practical and workable solution.
Here are a few things that you should investigate:
- Do I have enough capital to remain operational in the next 1 3 months?
- How will the supply chain disruptions affect my operations? Will I get the materials I need to remain in business?
- Do I need to downsize to remain operational?
- Is my product in demand during the pandemic? Do I need to modify my product offering?
Finding realistic answers to these questions will tell you where your business stands accurately. Being optimistic can create misperceptions, which will keep you from finding workable solutions. Therefore, be as strict in your assessment as possible and prepare for the worst-case scenario to sustain your business in the long-term.
2. What Financial Options Do I Have?
This pandemic has revealed that more than 70% of businesses do not have a war chest; they rely on their monthly profits to sustain their business. Therefore, it’s likely that your small/micro business is suffering financially during the pandemic. What does this mean? Financial distress leads to downsizing and cuts in the best case, and bankruptcy in the worst.
However, don’t throw your hands up in the air at the first sign of trouble. Government and non-government organizations are giving financial aid and loans to small businesses to help them survive until the pandemic is over. Here are a few options you can consider:
- Government Relief Packages: Governments across the world are offering financial relief packages to their small business sector to stabilize the economy. In America, the Small Business Administration (SBA) is offering multiple financial aid options, including paycheck protection, Debt Relief, and Loans. Similarly, regional/state governments are offering their versions of tax relaxations, deferred debt payments, subsidies, and more. Check your local government resources to learn more.
- Non-Government Financial Relief: NGOs, Big Corporations, and even communities are stepping up to help small businesses during this challenging time. These non-government initiatives are usually small-scale loan schemes for a particular niche or industry. Keep in touch with your local small business association to learn of any such resources. You should also search online for any financial aid in your locality for further information.
Some popular examples of non-governmental loans are:
Many other initiatives are being driven by celebrities, communities, and concerned individuals all over the world. Apply for loans and grants where applicable to get the cash to keep your business afloat.
3. Which Turnaround Strategy Offers the Best Chance of Success?
Once you have your financials sorted, you need to have a robust strategy to sustain your business during the pandemic. This virus has affected every aspect of our lifestyle, and undoubtedly it has changed consumer perceptions and buying behavior. Even if you get the money to keep your business open, your customers might not be interested in purchasing what you are selling anymore.
Consider the example of cleaning businesses during COVID, many small businesses that offered residential cleaning services experienced a sharp decrease in sales following the lockdown in March. However, commercial cleaning businesses saw increased demand as the need for cleanliness in public places, government buildings, hospitals, nursing homes, and other such places intensified.
Some residential businesses saw this increase in demand and seized the opportunity by shifting towards commercial cleaning services. Carpet Cleaning London[ss1] businesses in the UK found that acquiring commercial cleaning licenses kept them in business while their competitors couldn’t survive.
Hence, you must also determine how you can modify your product offerings to suit the new needs and purchase behaviors of your target audience. Some options worth considering are:
- Initiating E-Commerce and home delivery services.
- Taking precautionary measures as per government-issued SOPs to ensure consumer safety.
- Implementing safe distance in your physical stores to reassure consumers.
- Invest in digital marketing.
- Postpone expansion or growth plans.
4. Should I Continuously Monitor and Update the Plan?
The coronavirus situation is continuously evolving, and you must watch it like a hawk to sustain your business. Review the ongoing situation closely and then update your business operations accordingly. We suggest you be patient and make use of foresight to make logical decisions that will sustain your business in the long-term.
Additionally, measure the success of your turnaround strategy against KPIs to determine its success. If the strategy is not working, you must think of a new one before you get stuck deeper in the quagmire of loans and debts.
Final Thoughts
By now, we all know that the world was very ill-equipped to deal with the Coronavirus. From China to the USA and from India to Europe, no country (bar New Zealand) has been able to curb the virus or sustain their economy. Small businesses, the backbone of an economy, are the first casualty when an economic calamity strikes, and this was no different.
If you are a small business owner who is wondering how to keep their business afloat during the Coronavirus, than the tips mentioned above will help you a great deal. Assess your business to determine the nature and magnitude of the problem you face, evaluate the financial aid options available to you, consider a robust turnaround strategy, and continuously monitor your plan to maintain success. Although challenging, it is not impossible to sustain your business until we are rid of this virus.
Author Bio:
Shaheryar provides ghostwriting and copywriting services. His educational background in the technical field and business studies helps him in tackling topics ranging from career and business productivity to web development and digital marketing. He occasionally writes articles for Carpet Cleaning London
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
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