Trends and tips to build a leaner and stronger business post coronavirus pandemic.
From history, we can learn that crises are the most appropriate moments for fresh ideas, innovations, and creativity. Some of the major companies worldwide: Uber, Whatsapp, Airbnb, but to name a few, were created after the 2008 Global Financial Crisis.
For more than a year now, the world has been battling a pandemic that has claimed millions of lives. The coronavirus pandemic has completely changed peoples' way of living in unprecedented ways. One of its significant impacts is a global financial crisis that has left many people unemployed and many businesses forced to shut down.
Tips to Run a Leaner and Stronger Business Post Covid-1 Pandemic
The environment can seem challenging and frightening, but the current environment might be the opportune moment for young and ambitious entrepreneurs to start the business of their dreams. Raising capital might be a bit harder in the current economic climate, but studying the market and customer needs can help you stay on course.
Here are a few feasible tips for running both existing lean small and midsize businesses and new startups in a post-COVID-19 climate:
1. Empower your workforce and promote working from home
Workstations and offices have been the most vulnerable to people getting infected by the coronavirus infection. When carrying out their everyday work activities, workers are more likely to spread the virus to each other. It is impossible to run your business without your employee, or when most of them are sick and unable to execute their duties productively.
Working from home keeps your business up and running. Many businesses have had to change their way of thinking because of the coronavirus infection. Big companies have the flexibility, technology, and enough resources to switch to remote work. However, transitioning to a work-from-home set up for small businesses with no experience of managers and employees working from home can be a tough challenge.
A remote working setup presents several challenges such as home distractions, no cohesion with other employees, and high misunderstandings. However, there are ways to make it work as a small business owner:
Empower employees with suitable technology and tools
Supervise your remote employees through open and regular communication
Build opportunities for social interactions and engagement to boost productivity
Assign team leaders
If remote working doesn't seem feasible for your business, then we suggest that you execute the widespread standard operating procedures that health organizations worldwide are insisting upon. Keep your team leaders well informed.
2. Understand and adapt to changing market trends
In reality, not all businesses can adapt to the several changes, and there are and will be considerable consequences for many. Many small businesses have already failed, and others have survived and have learned to use the innovations adopted during the pandemic to drive streams of income flow and create new opportunities as the economy recuperates.
Keeping in mind that the market is changing now and then, as a small business owner, it's imperative to reconsider your business model and reanalyze where your business stands regarding revenue streams and expenses. Many people worldwide have opted to new ways like shopping online amid COVID-19 and prefer digital payment methods rather than traditional methods. You might want to transition to an online working model and incorporate digital payment gateways into your business to ensure growth.
3. Explore refinancing your business
Unless you have sufficient capital streams flowing into your business, you should consider getting more finances to cushion the market volatility after coronavirus. There are several options to consider when it comes to raising money for your small business post-COVID-19, including:
Traditional loans and macro loans
Small business term loans from banking organizations, credit unions, and online lenders
Merchant cash advances
Business credit cards
Financing methods are not limited to those mentioned above. Each option has its pros and cons. If you consider refinancing your business, keep in mind that lenders need guarantees that the loan can be repaid, and the field can be very competitive. Review your business and personal finances and evaluate the possibility of securing a loan.
4. Create a contingency plan for the next crisis
Even though COVID-19 appears to be once in a lifetime global event, the truth is that a predicament might arise along the way to interrupt your day-to-day business operations at any time. Leveraging the events of the current pandemic and using that information to prepare your business for the next emergency is not such a bad idea. This can help cushion your business from future shocks and crises.
For example, if your business is doing well, it is crucial to saving some money in liquid cash to shield your business during times of crisis. Perhaps, as you prioritize saving, you should also focus on cutting down debts and avoiding unnecessary spending habits to keep your budget under control. Also, you may devise other ways of minimizing operational costs in your business.
5. Develop a timeline to rebuild your business
The first thing you want to do is assess the extent of the damage caused by the pandemic to your business. You might have many things to do to recover from the damage caused by the pandemic. It is not a good idea to try and do everything simultaneously, but developing a plan and schedule might help.
It would help if you prioritize the important things first, and then the others will come after. For instance, the most critical objective is to secure money to refinance your business. After obtaining a financing source, you can now proceed to incorporating your workforce, restocking inventory, and finally reopening your business again.
As you start your recovery journey, it's essential to monitor your progress along the way, especially if you have secured a loan to finance your business. You don't want to waste your time and resources on activities that don't bring substantial returns on investment. At the early stages of the recovery, you might want to monitor on a weekly timeframe to find out the strengths and weaknesses of your business.
Regardless of your line of business, you need to develop a sound strategy that is flexible enough to keep your business afloat in case of an unfortunate event. Learning is a standard curve in the business world, and you should keep yourself updated with all the new trends and skill sets. A flexible working business plan and a desire to learn and explore will help keep your business afloat and ensure development even in the most unfortunate events.