How can small businesses survive the Covid-19?
There’s no doubt that the outbreak of the coronavirus negatively impacted businesses all over the world, and more particularly, small businesses that tend to operate on a few months’ runway. How can small businesses face this long-term economic impact?
In this article, we are going to explore several strategies small business owners can adopt to help them survive these financial difficulties, and even come out with a stronger business after the crisis.
- Take the time to adjust your financial plan
Making a financial plan for the next few months is a good starting point. In such critical times, every dollar counts, so spend carefully and keep enough cash for the coming period. You can start by making a list of all your company’s expenditures for the coming months. This will help you prioritize your expenses and identify all the non-essential payments your business can function without and the ones that can be rescheduled.
For example, you can downsize your office or terminate your lease agreement if it is possible to operate fully remote. Consult a lawyer to make sure you are not violating your agreement with the landlord or to negotiate a settlement with them. Since it is a global problem, everyone understands the situation and can agree with you on rescheduling your debts.
You can also consider cheaper, yet, efficient alternatives for your operations. You can invest in an accounting software with a low monthly subscription instead of paying a full-time accountant. As hard as it looks, especially regarding areas that were once critical for your business, this is a beneficial step that can help you to breathe.
- Benefit from the resources provided by governments and financial institutions
On a daily basis, governments around the world are coming up with initiatives to support small businesses. If you are present in more than one market, you can explore available options in these markets. If you are based in Dubai, check out the stimulus packages offered by the Dubai government which include financial assistance measures for startups and small businesses. Free zones in the United Arab Emirates are also offering discounts on registrations and licenses renewals. For instance, the DIFC innovation license is an interesting option for fintech companies to explore.
- Build partnerships
It is always beneficial to join forces with other similar or complementary businesses, especially during these hard times. For example, if you are a shoe-store owner, you can partner up with a delivery and logistics company to deliver your products to your customers’ doorsteps. Restaurants can sell prepared meals in local grocery stores, etc. Visit Lexyom.com to request a partnership agreement that protects both businesses’ interests.
- Move your business online
With the new social distancing requirements, everyone is going online. Ask yourself how can you digitize your products or services, and start selling them online. Even if your business requires your interaction with customers, you can adopt new ways to deliver your products or services virtually. Improving your online platform is the way to accomplish this. For example, you can create an online form with questions you usually ask when a customer walks in to fulfil his/her needs. By offering your services online, you maintain your existing customers, and potentially expand to new markets.
Most importantly, never lose contact with your customers. Use virtual channels to provide them with your latest services and offer them a discount on orders or recommendations.
Check out Lexyom’s Delaware and Cyprus company formation packages if you are interested in setting up a company for your online business, opening a bank account remotely, and linking it to a payment gateway to start accepting payments online.
- Invest in your team
Your team is your most valuable asset, especially during hard times. If you have a really talented and highly involved team, they can help you create a survival plan to get your business out of the crisis. Keep your staff productive as much as you can. Affordable online courses are available to train your employees on additional skills, especially when their department is slow. You can also think of new beneficial tasks to be handled by your staff and organize daily online meetings and conferences to keep them motivated.
On a final positive note:
Your business can almost certainly survive the Covid-19 crisis and potentially any crisis when you stay calm, focused, and adapt quickly to the new circumstances. Adopting simple measures can make all the difference and keep you a step ahead of your competition.