Economic crises are inherent in any entrepreneurial environment and as you can tell so far, running a business often resembles an endless race through obstacles.
But how can your company face the multiple challenges that COVID-19 pandemic brought by storm worldwide?
Here are some helpful extra pointers for growing business in this climate:
1. Deconstruct the danger.
Don’t make a crisis out of an already existing one.
Nowadays, it’s so easy to panic at the lack of money/ solutions and the uncertainty of the future. Cope with the COVID-19 pandemic’s effects on your business like you did it with any other difficult situation surpassed in your entrepreneurship days.
Having a healthy mindset and keeping perspective will help. Remember why you have started the business in the first place. It might be useful to return to its core to visualize the path and strengthen your overall state of mind.
2. Assess your “wounds”.
Scan the current state of your business.
It’s a must to review your actual financial situation and available resources. You have to clarify your real budget for at least three months ahead. Also, list your company’s main weak points, such as the access to digitalize your products/services, the investments-costs-profit ratio, or the capacity to move the business online. Target them with different challenging scenarios and the appropriate solutions.
In this case, the current pandemic is an opportunity for real improvement: to see what works and to go in that direction, it’s probably the most efficient short-term strategy.
3. Don’t go with the flow, take care of your cash flow.
“Cut costs drastically to stabilize the company”…nearly every entrepreneur is naturally drawn to that, when it comes to reducing the expenses in times of crisis. Any amount saved counts indeed, but you have to be careful at the “boomerang effect” of the unplanned cuts.
Avoid taking measures that might affect the quality and the productivity. Also, you need to consider a mid-term strategy within your limiting expenses policy: when the pandemic will pass, you will need to be more productive than ever.
Some recommended costs reduction may involve: the office/ headquarters rent, the utility bills (especially the electric energy usage), out of date advertising, or the employees (holidays/ governmental help/ freelancing).
4. Look for grants and loans.
Access the given resources.
Now, more than ever, you have to be informed about every institutionalized financial aid you can get.
Depending on your company situation, you might need to ask the banks to change your loans. It’s helpful to obtain a debt relief or a refinancing loan.
Moreover, many financial institutions, besides the government, offer support and stimulus packages to those entrepreneurs in need. Stay informed and seek for help!
If you need guidance Contact Us
5. Adapt your company to a post-pandemic future.
Tips for business improvement.
Adaptability is the key and creativity is the way. Brainstorm and transform!
There are two fronts you have to fight: the current, restricted market and the one after the outbreak will pass. Undoubtedly, the pandemic has already shaped your business (from changing up the schedule and the workflow, to applying discounts and even, ceasing some activities). At the moment, the quarantine dictates the norms of the businesses and what is profitability.
You will have to sort out what of the customer behaviour will remain after the quarantine and to draw value from it. You will need to keep yourself relevant. For that, company rebranding may become essential. Create new products or new services.
So far, one of the most efficient strategies to increase sales in this context were:
opening/ increasing digital services channels, migrating to online sales forces, and reallocating the workforce to other activities/ companies. One viral example for the last strategy comes from China, where more than 40 restaurants and hotels outsourced their workforce to supermarkets chains that needed staff urgently for delivery services, once the online shopping exploded.
As you can tell, the solutions are always finding a way to those who are willing to communicate, join forces with others, adapt and seek help when it’s needed.
We are in this together Contact Us.