Media Tactix has examined some ways for small business to survive during the COVID-19. The extended national lockdown has meant that businesses across all sectors have taken a hit. The impact is more severe for small businesses who have seen their business dry up and their cash flows disrupted. While the going will no doubt be tough, there are ways a small business can survive the crisis and be in a position to bounce back when things get better.
Take Immediate Action
In such a scenario it is better to be proactive rather than be reactive. Decisions need to be taken and taken very fast. Look at ways to reduce costs as much as possible. You might have to put on hold any expansion plans. Try to wait it out until things improve. While you may usually try to help others, this may be the time when you ask others for help and support.
Focus On Cashflow
Now is the time to focus on cashflow and not on profits. While the focus should be on collecting receivables, that is also be under pressure now. While your business might to be functioning as usual now, you can offer your customers gift cards and vouchers with no expiry date and earn some cash. Figure out if you can offer some essential services to your customers, even if it is not the primary function of your business.
Now is also the time to talk to your existing to your vendors and suppliers to see whether you can extend your payment term or get a longer grace period. If you have a lease, you can see if the landlord offers you a similar benefit or a discount on rent.
Engage Your Customers
While business might not be going on as normal, now is the time to engage more with your customer through social media channels. The idea is to stay in their minds so that when areas reopen, your business is at the top of their minds resulting in more business more quickly. Reach out to your customers through email and social media and engage them whether it is through quizzes, games or any such activity. Remember that the customer is king. It is important to keep the communication going even if it is not directly leading to any sales during this period.
Check For Any Available Financial Program
Governments all over the world are putting into place financial assistance plans for small businesses. Find out if you are eligible for any such assistance whether it is any financial assistance or easier terms in terms of business loans. Tap into all of the help available to stay afloat.
Make A Financial Plan
The financial plan you had in place is not likely to work now and adjustments need to be made. Take a closer look at your income and your expenses. See if there are any expenses which can be delayed or put on hold. Discuss your plans with your partners and stakeholders so that you are all on the same page. Have a plan in place of how you can get back to normal business as soon as the crisis is over.
Finally, remember that you are not alone. We are all in this together. However bad the scenario may be right now, things will get better. As the cliché goes, there will always be light at the end of a tunnel.
