Who would’ve thought that there would be a pandemic all of a sudden? Covid-19 and the worldwide lockdown crisis have changed so many things making businesses experience major impacts whether it was a big business or small, they have all suffered and started re-looking at the ways to manage their businesses during these tough times.
Businesses are having a very challenging period trying to maintain their finances during the lockdown as there is a global financial crisis.
Unfortunately smaller businesses have suffered the most. There are some steps entrepreneurs need to keep in mind to be able to keep their businesses alive during these challenging times and the second half of 2020. This article will be talking about the steps that an entrepreneur should think of in order to keep their business alive.
1. Create a plan
A lot of entrepreneurs make the mistake of not thinking ahead, there always must be a plan B ready for such circumstances. Having a plan can mean planning a financial plan or simply planning a new work strategy.
Having another business plan or a plan B means setting new goals, investigating the market, and learning about what’s going on around you in order to implement it in your business.
It is important to have it as you will know where your company lays and how to take advantage of this crisis in a positive way.
2. Transparency in communication
The key to a successful business is to be as transparent as possible to customers and employees. Since we are all in this together, it is best to be transparent with consumers on what the business is going through. People understand that businesses are going through a very tough time and can empathize as long as the communication is done transparently. It is also important for businesses to communicate with consumers and understand their perception of goods/services offered by them.
3. Keeping the teams engaged
Employees rely on leaders and managers therefore it’s always important to stay connected and engaged with them. Video conferencing is the best way to do so, apps like Microsoft Teams and Zoom are very helpful during this time. Team members need to be informed and updated about everything that is happening in the company, it is the leaders and managers to do so. It is also important to maintain a positive spirit during these times as businesses always need to understand the moods of their employees and keep them updated.
4. Having a healthy relationship with contractors
Contractors can understand that it might be very difficult to pay them on time during these tough times. However, it would be helpful to give landlords, suppliers, etc. a fair notice in case of any delay in payments so that they can prepare themselves for the delay.
5. Making a financial plan
It is always best for a company to keep a financial plan to keep track of their expenses. Ideally making a financial plan for at least 3-months ahead can save so much time and will help in understanding how to prioritize the finance. Speaking to landlords, suppliers, etc is the only way to find out what options to have to spread out the costs and knowing what costs are necessary and what can be put on hold, prioritizing finance.
6. Do overall research:
Governments worldwide are providing daily basis information about the crisis and updates that help business owners in decision making and planning. Staying up-to-date on the updates and adhering to the coronavirus guidance as provided by the government is another important step that needs to be taken seriously.
7. New ideas for pricing and terms
Coming up with new ideas for pricing and terms means introducing new terms for dealing with these crises. Consumers should understand that there will be changes made regarding terms and pricing policies. Prices can change to match the same level as the market, so changing that means being safe as consumers will still consider this business. Consumers being informed will build up loyalty and trust between them and the company.
8. Finding opportunities
A lot of businesses find it hard to find opportunities during this time. Finding an opportunity includes, learning how consumers will behave forward, finding new customers. Most importantly, a business should know to consider shifting any of its products or services online to be able to gain more profit and get more potential customers. Companies should know how to implement technology in their business to track the profits and losses by the new customers.
9. Do not sacrifice quality
Many companies tend to reduce their quality to save costs. This is not the best way to keep the business running as this will affect the current consumers. Consumers will lose interest in the product or service offered as the quality will not be as they were used to and will make them stop consuming. Therefore, the company will lose loyal customers to competitors who do not reduce or sacrifice production quality.
10. Update rules
Companies should consider adding new rules to their terms and conditions. Adding rules in the company when employees get back to work is essential. Rules including, no handshakes (non-contact method of greetings), washing hands (the employees should always wash their hands when they arrive and frequently throughout the day), temperature check at the door before entering the office. The company should always keep the office clean by hiring people to clean up each day.
In conclusion, for any type of business especially the small ones to survive during these crises should keep in mind steps and procedures to do so. Teamwork is always the key to survive, business owners should consider updating their employees or staff of every single update. They should be as transparent as possible to their employees or staff and their consumers to keep their business alive.