Even though the situation with the coronavirus is becoming a bit better as each day passes, we still have a lot to go before we can return to our normal lives. Among everyone that was affected, small businesses received a hard blow to the face. Be it because of the curfew that is still active in some countries, or simply because people are not going out as much, the financial loss is apparent. Nevertheless, when one door closes, another opens. With that in mind, let’s see how small businesses can curb losses caused by the coronavirus outbreak.
Make a reality check
First of all, it is essential to understand how your business is being affected by the global pandemic. For example, if you are a retailer who sells clothes, there is a whole array of issues that you might be facing. If there is a curfew in your country, you cannot open your store. Next, if your store is open, you could also have issues with re-stocking your supplies, since the borders are closed. Or, let’s say that your employees are living far away, and there is no way for them to get to work.
Before we start discussing how small businesses can curb losses caused by the coronavirus outbreak, it is crucial for you as a business owner to research all potential problems and put them on paper.
Do you have an online store?
Today, almost all businesses are already online. However, if you are the one who still did not embrace the benefits of the Internet, now is your chance. The Internet is not affected by the pandemic, and it can run without any issues.
At the moment, many people lost their jobs due to the virus outbreak, and they are massively turning toward looking for work online. The Internet changed job market in amazing ways, and not only can people find work, but companies can also find new customers!
Look for other markets
Finding new customers is imperative in any line of work. An important action during these hard times is to look beyond your regular type of customers. Start researching new target groups. Demands change, and buyers change as well. If you as an employer do not become the part of this changing process, your business may be at serious risk.
Let’s talk about cash flow
Managing your business finances is always difficult, even if your business is running regularly. Now, it is crucial that you have insight into where your money goes, and how it works for you. Since your income is probably lowered, you must work with what you have in the most productive way.
A pro piece of advice is to create a cash flow forecast for 10 to 20 weeks in advance. Consider worst-case scenario and calculate your losses. Knowing this information can save your business.
Furthermore, you should try to boost your liquidity at all costs. A great suggestion is to offer a discount or cashback to customers who pay more quickly. This way you are making sure that you always have some money flowing through your system.
Another advice is to read finance articles in your free time. This is an excellent source of information for any business owner.
Introduce new products to your customers
Being creative and thinking outside of the box is a way for small businesses to curb losses caused by the coronavirus outbreak. If you can introduce new products that will have a higher selling percentage, you should most definitely do it.
To give you an example, companies who do 3D printing started creating plastic protective equipment for healthcare. A number of companies provide that same equipment to their customers, so they can feel safe and secure.
Depending on the type of the business you are running, you should try to look for a new idea that will expand your market and reach out to your customers.
Moving your business as a last resort
Hopefully your business will not reach this stage, but it is good to know that this option exists as well. If your offices are not in the town where you live, getting to work may be almost impossible. If you cannot travel between cities, you may want to move your business to a new space, preferably somewhere closer to home.
Saving money when moving office
Moving your office may be a costly investment, but there are ways to save money during relocation. Think about moving only the essentials, which will also reduce the time consumption. Finally, ask if your employees can help out with the relocation.
Working from home
As you are probably familiar with this information by now, a lot of companies are working from home. While this is not something that will directly increase your income, it will greatly reduce your expenses. You won’t have to pay the rent, and there is no time loss between getting to and from work, which will in return increase productivity of your employees.
This is a fantastic indirect way in which small businesses can curb losses caused by Coronavirus outbreak.
That’s how small businesses can curb losses caused by the coronavirus outbreak
Since we reached the end of this short, but information-packed article, let’s do a quick summary of the possible options:
- Note all liabilities and possible worst-case scenarios
- Use the benefits of online sales
- Expand your market
- Offer new products
- Target different groups of customers
- Work on the cash flow forecast
- Increase liquidity
- Consider moving your business or working from home
All of these options are viable if you wish to curb losses caused by the coronavirus outbreak. Nevertheless, every business is unique in its own way, so go through this list carefully and pick options that will have the highest rate of success. Good luck and stay safe!