According to a survey, 23.4% of small businesses in the United States say the COVID-19 pandemic had a very negative effect on their businesses. Most companies had to find ways to adapt to the “new normal,” which meant shifting operations online, reducing employees, and developing new business models. So, how do you steer your business to success in this pandemic? Here’s how.
- Move Your Business Online
The pandemic led to the closure of many businesses and unparalleled job loss. In addition, the ban on physical gatherings and rules on social distancing meant that some businesses could not host customers like in previous years. Because of this, businesses were forced to digitize most or all of their services.
A UNCTAD report showed e-commerce platforms reported a 50% increase in transactions during the first six months of 2020. More customers are now seeking services online, so you need to digitize your operations to survive.
- Invest in Innovation
When the pandemic was at its worst, most countries enforced strict lockdown regulations and more people started working from home. Many still are. Start investing in new software and communication tools that make it easier for your employees to connect and work from anywhere.
Businesses that invest in innovation promote collaboration among employees. They easily identify industry trends and leverage opportunities to innovate. Innovation will help your business to position itself better and put more focus on long-term goals rather than short-term gains. Each business now relies on technological innovations to succeed.
- Change Your Strategic Approach
Since the onset of the pandemic, there has been an increase in online shopping and logistics. For instance, the global food delivery industry is now worth more than $150 billion. Logistics companies have been very successful during this period as more people order products online.
If you are starting a logistics company, adapt to the changes in the market by developing new strategies. Take advantage of the rise of e-commerce to build and grow your business. Consider adopting a low-cost approach or targeting a niche market to compete with key players in the industry.
- Focus on Marketing
Although revenue has gone down for most businesses, it’s still important to have a marketing budget. You can downsize the budget, just don’t overlook marketing altogether. For instance, if you own a lending service and need more customers to apply for car title loans online, you have to advertise on social media or use paid ads.
- Have a Financial Plan
The pandemic brought many small businesses to a standstill. If you want to survive it and steer your business to success, you need a financial plan and a budget. While the worst of the pandemic is over, planning will ensure company operations don’t stop when the next event happens. Before making any new asset acquisitions or expanding, calculate the costs to ensure your business stays afloat.
Proper planning is crucial for every aspect of business and makes it easier to achieve your business goals even when times are tough. Follow our tips to make your business survive the pandemic and boost profit margins.