6 steps small business owners can take to survive the pandemic
“I have often talked about the importance of pivoting when contemplating a career change, but this notion has never been more critical than it is now. In order for businesses to move forward, pivoting is essential.”
There’s no doubt about it. Life can throw some incredible curveballs. And while some are expected and even accepted, nothing could have ever prepared me for the curveball the entire world encountered just a few months ago. To call the current COVID-19 pandemic a crisis feels like an understatement. It is more like a tsunami whose ripple effects have thrown everyone and everything out of balance. In addition to the grave health concerns affecting millions of people around the world, businesses -- especially small ones -- have taken a beating. However, what has hurt us also unites us. No one is in this alone.
I have often talked about the importance of pivoting when contemplating a career change, but this notion has never been more critical than it is now. In order for businesses to move forward, pivoting is essential. The rules have changed. Businesses cannot operate the way they did before. Business owners have had to quickly take stock, get creative and spend time understanding the new consumer mindset in order to re-emerge stronger than ever. TAP’s mission has always been to help accelerate small business growth, providing underserved businesses with access to professional services they wouldn’t otherwise have. However, we, too, have had to pivot -- from helping businesses grow to helping them stay afloat and navigate uncharted waters. In some cases, they had to reinvent themselves to become as relevant as possible in this new world. In other cases, there was only a slight shift needed. Regardless of where your business fits in this paradigm, there are some best practices that can help during this time.
1. Mobilize Your Talent
When the world changed in what seemed like an instant, the TAP team quickly mobilized our resources, in the form of our talented consultants, to jump in and help both new and former clients in any way we could. We developed quick solutions to maximize cash flow, identify opportunities, brainstorm ideas, reduce and negotiate expenses and provide assistance with SBA loan applications and other grant opportunities. Ask key staff members or trusted advisors to take on new roles to help you address your most pressing needs. It’s important to re-emerge and develop new skills to become more relevant in this new environment, such as creating online/e-commerce if you don’t already have a presence or relaunching your business in a slightly different way.
2. Get Closer to Your Cash
As you manage your way through this trying time, take note of the things you’ve done well and what you can do better in the future. Liquidity is extremely important for the long-term health and survival of businesses even in the best of times. Think about building reserves. Cut unnecessary expenses. Make sure you have more cash coming in than going out. If you do have reserves, you might be able to afford to ride out the storm, but most businesses only have enough to cover 1-2 payroll cycles, so it’s important to leverage the good relationships you have with your vendors to try to get some breathing room as you adjust to this situation.
3. Take the Time to Reflect and Innovate
This pandemic has forced us all to slow down. Regardless of the state of your company, use this time to reconnect with your consumers. Build that database you never got around to creating. Spend some time enhancing your social media presence, as people are online now more than ever before. If you don’t have a website, create one now, as most transactions are being conducted online. Platforms, such as Shopify, make it easy to build your own, but consider asking a college student, who might be out of a summer job, to assist.
4. Communicate the Changes
If you have created enhancements to your business, flag it on your website, email your customers and post on social media. If you are a restaurant, perhaps you have implemented new cleaning and safety measures. Let your customers know. Consider utilizing videos to show the changes you’ve made -- pictures are stronger than words.
5. Nurture Relationships
Keep in touch with your clients, employees and customers. Check in with them regularly to see how they are doing and if you can assist them. Consistent communication will go a long way to keeping those relationships strong and possibly generating more business, as people are craving interaction. Survey your customers to better understand their needs and make sure you are meeting them. Keep talking to them and reminding them you are here. That personal connection is always important, but especially now.
6. Adjust Your Mix
Every business needs to adjust their offerings. Clothing retailers can focus on selling tops and accessories for the current Zoom world. Photographers can offer socially distant photo shoots. Exercise studios can offer Zoom classes privately or for groups of friends or hold classes in parking lots. Restaurants might ship products around the country for virtual dinner parties or start serving their customers outdoors. Businesses should all take credit cards instead of cash only. The common theme here is the pivot!
As daunting as it may seem, we will get through this one way or another and TAP is always here to help. Businesses that can be flexible, patient and responsive should persevere and will hopefully come out stronger on the other side.