The National Bureau of Economic Research had published a new economic survey, which said that the extended economic depression resulting from the covid crisis would see a sharp decline in small businesses. Small businesses survive on a few months of cash flow, making it more difficult for them to face the recession.
Times as hard as covid impacts largely poor and underprivileged classes of people and small business companies with limited access to survival kits and resources. But, thanks to the helping hands that come out at such odd times to help these calamity-affected people and businesses.
That being said, we have also made a brief on how small businesses can survive the covid recession and bring back their business from the dead. If you run a small business at this time, this article is a must-read for you, and I hope it helps you and your small business survive the hard times.
Changes Small Businesses Must Make in Their Processes to Survive The Covid Recession
1.Your business may be small, but your promoting and marketing activities must be extensive
With the current lockdown scenario and restrictions in doing smooth business, the only hope of every industry is digital marketing.
Small businesses must also move in the same direction and start planning to promote and market their business on various digital platforms, such as social media sites, email marketing, link building, and more.
People now tend to spend more time on social media than anywhere else. So, you must create innovative marketing campaigns extensively for all the social media channels and keep interacting with your followers regularly to build a strong relationship.
By doing so, you will be creating a large chain of potential customers, which will only increase with time.
2. Keep your worries behind and use the resources provided by the financial institutions and government
Governments of each country understand the plea of the small business owners. They are constantly rolling out numerous initiatives and support schemes to bring their businesses on track slowly.
Governments have also asked banks operating in their country to assist small businesses in whatever way possible. From providing business loans at a minimal interest rate to even interest-free ‘covid’ loans, financial institutions and banks are doing their best to lift each industry.
On the other hand, the government has launched several welfare schemes, especially for small-scale business houses. Mainly, governments have stretched helping hands to support small businesses monetarily.
If your business has a presence in multiple nations, you can seek support schemes of other countries as well in which you operate. The CARES Act added $349 billion to the Pay Check Protection Act, where it provided a forgivable loan of up to $10 million to those small business houses that promised to pay 75% of the loan amount on the payroll.
3. Create a three-month financial plan
This step talks about chucking those expenses, which are not paid urgently and can wait for a certain period. You make a list of all those expenses that will stand due in the coming three months. Now, in this comprehensive list of your business expenses, look for those costs that you think can be delayed by persuasion.
Of all your creditors, check those who agree to receive payment after a certain period and invest that amount into your business as working capital to keep it floating.
But remember that you do not stop the payment of another small business because that company also needs to sustain the crisis as you do.
4. Constantly look for better opportunities
Multifaceted Businesses can bear any economic crisis because they have diversified business activities. If income from one industry stops, the entrepreneur can generate more revenue from the other business activities.
Small businesses should apply the same technique if they want to revive themselves as early as possible. If you run a small company making homemade food delicacies, you can start tutoring online on food items or writing food blogs.
You will start earning a decent amount initially, but you can make massive income solely from this business with the right approach and attitude.
5. Invest in upskilling your staff
This point is a mix of the above two points. Just like small businesses must diversify or expand their business line, small businesses should also upskill themselves and be able to perform multiple duties.
If they learn a new set of skills, they will be doing other people’s work, and the business will be able to save cost by removing such extra employees whose work can be handled with someone who is better efficient.
Upskilling will also increase the employees’ value, which will be seen when they get an excellent promotion and a hike in pay compared to the industry standards. Learning multiple in-demand software or digital marketing techniques is one of the most demanded skills in today’s world. So, if you want to succeed fast in this world of crisis, learn as many skills as you can.
The survival of small businesses depends on their ability to make a difference even in such challenging times. If they have the courage and passion for pulling out their business from the recession, they will find more than one door in their support. Otherwise, the above methods are always there to help you come out of the covid recession.
How Can Small Businesses Survive The Covid Recession?