10 Effective Survival Tips For Small Businesses In Crisis
When in crisis, small business are historically the worst ones to get hit.
Currently, with the COVID-19 pandemic, much small businesses has already closed shop around the world with many barely holding on.
Here are some essential survival tips for small businesses during a crisis even as Coronavirus tears throughout the world.
Work From Home
If your small business can afford to work from home, then use it. This is by letting employees work from home.
This reduces the costs incurred in everyday office work including the rent of the premises and internet connection costs. To ensure the work runs smoothly, ensure that there are good communication streams with employees and that they understand their responsibility.
A crisis is not all doom as it can present various opportunities for business owners.
The COVID-19 pandemic currently crippling the world economy has presented business owners with the opportunity to create products and services that are essential to people at this time.
These include the making of hand sanitizers and soap among many others.
If you can, shift your focus to more crisis management centered goods and services and your business stands a chance of surviving.
Concentrating On Small and Priority Projects
While businesses prioritize diversification as a strategy to grow, during a crisis the inverse can be true.
It is therefore important to analyze the main income-generating services the business offers and concentrate on those while terminating or putting the rest on hold.
This way, you will ensure that money is still coming in without spending too much to keep the business afloat. Things like sales, for example, should be reduced as the business needs all the money it can get during a crisis.
Cash is king in any business operations.
Put in place a plan and strategy to conserve cash coming into the business and try finding a way to keep the money coming in. It is also important to have cash on hand during a crisis as you will need it.
Use Effective Tacticts
During a crisis, it is important to use cost-efficient tactics when running a business.
Employees are among the most cost consuming assets in a business. Some tactics to employ during a crisis include ways that will reduce expenditure such as in-house hiring, layoffs and pay cuts.
It is, however, important to remember that they are an asset and to practice the cuts and layoffs accordingly. Always preserve the ones you need most as you can’t run the business alone.
Be creative about finding sources of cash.
Think of ways to get Government grants. With COVID-19, you will be eligible for support under an emergency federal bill passed by the Senate on March 25.
It will provide $2,000 per month to support people who have lost their income due to COVID-19. It allows employers to retain their employees rather than lay them off.
In times of crisis, the competition for customers becomes stiffer and more aggressive than ever.
It is during such a time that you should ensure that your company produces the best services so as to attract not only your loyal clients but your competitors too.
Review Inventory Practises
Check how you run your business and look for alternatives that will save costs but won’t affect the quality of goods.
Look for alternative suppliers who offer goods of the same quality but cheaper. Also cut down on the quantities of goods that don’t sell fast.
While most people look to cut back on costs and terminate marketing, this is exactly the time for small businesses to invest in marketing.
During a crisis, hardly any business is marketing their product thus giving your business all the attention in the market.
Make yourself visible during this time and it will pay off.
Funding for small businesses and personal loans always goes up during a crisis such as the Coronavirus pandemic.
Make use of these loans to keep your business afloat. Keep your personal credit in good shape to be able to secure even more loans.