Amidst the Covid-19 pandemic, companies in almost every industry have gone downhill. For small businesses that have dried up sales and broken cash flows, the effect is more severe. There are many ways a small business can weather the recession and be able to come back when things get normal, but it will be difficult. In the past few months, to thrive, companies have had to adjust, transform, and find innovative ways to work. The most important measures include eradicating unnecessary costs and exploring new ways to increase your profits while protecting your employees, customers, and society. Here are some tips from business owners who found ways to move forward during this trying time.
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Tips for Businesses to Survive the Coronavirus Crisis
There are a lot of Coronavirus-affected countries. The deadly epidemic virus, COVID-19, is causing people to live in constant fear and alertness. Because of the severe outbreak, people’s livelihoods and businesses are unable to thrive. We would like to share some primary survival tips for businesses during COVID-19:
Outline a Plan and Prioritize Action Items
Before you do something, set a timeline. Review your ongoing company activities to make a list of all monthly bills and operational costs. It is essential that these are given priority so that you know where expenses can be cut. Employee wages are going to be one of the highest, if not the largest, running costs, so would you imagine temporarily cutting salaries by a few percent instead of losing employees? The same goes for hours. This is definitely better than losing someone if you have a strong team.
Consider Transitioning Remotely
While this does not apply to all businesses, it is something worth mentioning. A study shows that workers who were willing to work remotely were typically satisfied and more successful than their non-remote peers. Telework is now being used as essential, however, you may be reaping benefits in the long run.
Not only will workers experience reduced levels of stress and better employee engagement, but it can also help cut expenses. Any planning will have to be done before you transition to a remote working model because there has to be a good structure in place before staff can thrive.
Focus on Customers over Competition
It is customer service that separates large enterprises from small businesses. It’s time to dive further into your business, look into what has served you well in the old days and what you can do beyond that to add benefits to the customer and keep them so that once things get going again, you are the first they hear about.
Make a Short Business Plan
To avoid the unexpected impact of the unforeseeable COVID-19, a short-term 3-month business plan/strategy should be quickly developed. The schedule will guide you with specific measures during the set duration to minimize losses and optimize your current operation. You can move your goods to free online distribution instead of selling them at your store or restaurant or moving to another product or service segment that has a strong demand during this time.
Don’t Be Afraid of Making Decisions
When the future is uncertain, determining what to do next may be difficult. But if you have a plan, follow it through and make the decisions you feel are correct for your business. Because of the fear of the repercussions, holding off decisions can cripple your business. Do what you can to move it forward.
Provide Employees with Resources
Do not forget to take better care of the workers, too, with this being a rough moment. Each person deals differently with stress, and you can look at offering services as a business owner. Some services provided can be an employee social network with channels for mental well-being such as online counselling and telehealth and even one-on-one conference conversations with quick follow-up by management and supervisors.
Review All Expenses
Have a glance at all of the expenses, to see what you can reduce, if only temporarily. If you have standing orders for any stock or office equipment, suspend prospective purchases if necessary. From laundry and advertising, to see how you can cut prices, take a peek into all the items you pay for on a regular basis. For facilities and incentives, ask whether the service companies are providing any fee adjustments owing to the epidemic.
Focus on Cashflows
Do not depend on profits, but on cash inflows. Find out how you can offer some valuable services to your consumers, even if it’s not the mainline of your market. Speak to the existing contractors and manufacturers to see whether you should extend the billing cycle or have a longer grace period.
Check for Any Available Financial Aids
Governments all over the world are putting into place financial assistance plans for small businesses and the government of UAE is no different. Research and find out if you are eligible for any such assistance. Tap into all the help at hand to stay afloat.
Brainstorm Diversification Opportunities
Now’s the opportunity to be innovative. What aspects of the enterprise can be converted into online components? In terms of what challenges, you can fix for them by virtual means and your customer-first mindset, you need to look outside the cage. Is there valuable content that you can supply them with on interactive platforms? Will you offer to hold video meetings in lieu of actual ones? No suggestion is a bad idea. Put on a thoughtful cap.
Lead with Empathy
It is important to remember that this situation consists of a health crisis, a business crisis and a family crisis. While you might be dealing with challenging business choices, keep in mind that your staff might also be experiencing a variety of difficulties. Think about areas in which you can encourage efficient schedules, review everything your staff do on a regular basis and wonder if you can do more to make it easier for them. Empathy will lead to open conversations, a committed workforce, and a sense of optimism that can guide you and your friends during tough times.
We Are Here for You
One thing is certain –, the war against this pandemic will be won, no matter how extreme and devastating this crisis is. What is most important, though, is to be able to adjust and stay agile and versatile. At the other end, with a positive outlook, adequate planning, and staying concentrated, you would be able to come out stronger and therefore produce the best potential outcomes. If you have any questions on how Riz and Mona Consultancy can support you and your business during these times, please reach out. We’re in this together.