The global COVID-19 pandemic has far-reaching repercussions for society, the health care system and the economy. Small- and medium-sized enterprises are going to be placed under tremendous pressure as people practice social distancing. Supply chains will be challenged, too. With the knock-on effects of COVID-19 impacting consumer behaviour, small businesses must be innovative and find ways to stay competitive and ensure their survival.
Certainly, these are extremely trying times, particularly because we are in unchartered territory. However, it is important not to panic.
Communication is key
Communication is the first area that needs your attention in any “panic” situation. Given the situation is likely painted as “dire” in the eyes of the news media, communicating your standpoint and any business changes to your team becomes critical. Without communication, the FUD (fear, uncertainty, and doubt) factor kicks in. This can cause panic to escalate.
Company owners should be open, honest and transparent with the facts, and to focus on communicating fact-based and most relevant information. At the same time, be empathetic, engaging and educational. Take a step back and look objectively at their entire business to find the greatest point of weakness – the biggest threat to business continuity.
With this pandemic or other supply chain issues, you might need to change the way you distribute, sell or deliver. Look carefully at where the missing links are. Consider if you need to deliver the product or service in a different model. Ask if your customer buys the product the same way. Don’t wait for the customer to find alternative sources.
A change is as good as a rest
You may have to source products from different suppliers to your prior sources because in some situations, the primary source for product or inventory might not be able to provide the quantity or timely delivery. This may be an opportunity to make a change that was already needed.
Small companies can quickly adapt to changes in the economy thanks to their size which makes them more agile and because most of their business comes from their local customers who largely prefer to “buy local”.
Adding value is one of the best and easiest ways of ensuring that customers do not stray. Consider carefully what customers need and think strategically about how this can be delivered to them more seamlessly and at a fair price. Focus on the little things such as optimising communication, levels of customer service and by making it easy for people to source and pay for products.
Refinancing debt at a lower cost could be of benefit. The decrease in cashflow that comes from slow payments (higher accounts receivable) might mean greater use of borrowed capital. Also, a disaster or pandemic or other types of “emergency” as defined by local or national governments, sometimes means the freeing up of cash to keep economies stable. Look for finance opportunities to smooth the way.
Small businesses contribute significantly to the economy and it is important to the health and sustainability of local communities that they survive. As individuals and fellow business owners, we should continue to support local businesses.
If you are feeling overwhelmed, consider commissioning a business coach to assist simple yet effective tools to achieve and strategies for managing this turbulent time. Importantly, make sure you are healthy physically, mentally, and financially. This is critical as you are the driver of your bus.
Source: Inside Small Business