Impact Of Covid-19 On Small Businesses
Uncertainty
The pandemic has caused huge amounts of uncertainty in every industry, the systems and rules in place are constantly changing according to the rates of infection. All stakeholders are being impacted in some way, causing dramatic changes for the operations of most businesses. Business owners, employees and consumers are experiencing uncertainty in varying ways and many economies are struggling to support businesses in the way that they need.
Disrupted economy
Economies are in poor states because of the mass uncertainty and the high cost of implementing systems to respond to the pandemic. Millions of people have lost their jobs around the world and many families are experiencing financial difficulties. With less disposable income, fewer people can afford to purchase products and services that are not completely essential.
Employee difficulties
With isolation rules in place, many businesses have experienced much less ‘manpower’, employees have been unable to work or have been distracted and less motivated whilst at work. Employees are often a large expenditure for businesses, many businesses are struggling to afford the operating costs.
Tips For Your Business To Survive The Pandemic
Utilize free platforms
Online platforms such as social media and selling platforms are helping many small businesses to survive. Social media advertising can be hugely effective and it costs minimal amounts! You can use these channels as a form of communication to make your customers aware that you are still in operation, and inform them of any adaptations you have made in response to the pandemic.
Learn to adapt
You must adapt your business to ensure it is operating within the most current Covid-19 guidelines. You should also adapt your business offering to ensure it is effective during these circumstances, such as becoming more convenient for the customer and focusing on products or services that are most suitable and in demand.
Carefully manage your finances
It is important to manage and track your business finances during unprecedented times closely. In order to survive, you must try to minimize your expenses as much as possible and utilize the resources you already have in place. You should make careful financial plans and ensure that you include several contingency plans.
Research what you are entitled to
During these times, there are various schemes and systems in place to help small businesses to survive. There are various government schemes and loans to help you to manage the finances of the business, there are also mentorship, support and advice schemes to guide you through the process of adapting your operations. You should spend some time researching every opportunity and scheme that you are entitled to engage with and utilize everything on offer.
Money-Saving Tips for Your Business
Negotiate
Many businesses forget to negotiate their expenses. You can save money by negotiating with stakeholders about the price and payment system, helping to give your business more flexibility. You can have discussions and find solutions that are mutually beneficial to ensure that your stakeholder network remains as strong as possible during these uncertain times.
Utilize existing resources
Before spending money on new products or materials, you should try to utilize the resources you already have. If you can operate online on an existing website or platform, you should try to utilize this. You should also try to generate capital by selling the products and services you already have available before continuing production.
Cut costs
One money saving tip is to evaluate your monthly expenses and make cuts where possible. For instance, you can shop for more affordable utility providers and do a PA power switch for a better rate. This will allow you to save more capital for adapting your operations and working towards maintaining a loyal customer base.
Infographic created by Clover Network, a retail POS company
