Managing a business in crisis requires a collection of bold steps that the small business sector must rigorously act on to be relevant in the present commerce space and this COVID 19 global crisis. Small business owners have no choice but to fight for their survival or go out of business.
In any crisis, it’s the small businesses and midsize companies that are negatively impacted first, and they are more likely to fold. They must search for and apply ingenious tactics to stay afloat. It’s obvious that it’s not going to be business as usual in the upcoming months, so there needs to be some leadership changes in the marketplace.
Managing Business In Crisis- The Obvious Challenges Present Today
With the spike in corona cases in the US again, the full reopening of the economy seems on the distant horizon. A new plan of action is called for and is being formulated on many fronts by the SMBs. It is now of the utmost importance to navigate the immediate risks posed by the crisis with wisdom so that your business can emerge with minimal damage when this is all over.
At the same time, the whole world must prepare for a post-COVID 19 world that will surely be different from the one we live in at present.
With the ongoing partial lockdown of the business sector, the shift from the customary physical spaces to embracing digital connection has for many people been the core step in managing a business in crisis.
We are already in a digitally enabled world and experiencing a physical disconnect, which has more than doubled the amount of time spent online for thousands, depending on the type of business.
Food businesses must continue to serve the community. Restaurants and supermarkets have found new ways to stay in business, although some supermarket shelves are empty due to panic purchasing or high levels of unproductivity in some sectors because of the lockdown.
Any business that provides basic commodities is always relevant in any pandemic. Online, tele-purchasing, take-out, and delivery services have taken precedence.
Reach Out And Connect
Many SMBs are reaching out to their stakeholders, which include the customers, partners, bankers…etc. This is to stimulate trust and a feeling of goodwill as the business community rides out the storm.
Here are some of the boldly recommended steps that you can take as you manage your business during these crisis moments.
- Reach out to your lenders. You can organize short-term relief by requesting a more long-term payment plan or ask for extended credit. The SMBs have a 27-day cash buffer in reserve. Federal and state governments also have several relief programs. This makes it easier for lenders to listen to and have a dialogue with SMBs. As a small entity managing business in crisis, you need to be proactive and reach out to your financial institutions before you fall into financial disasters that you can’t recover from. Follow your State Government twitter page for timely financial relief information. If you are in the US, follow NFIB so you are in constant grip with emerging regulations as FNIB is the voice of the small business.
- Reach out to your vendors to confirm that supplies will continue, bearing in mind that they too may be having their challenges. Some of them may be able to offer you deferred payment terms as well. You could consider doing the same for others if you do business to business.
- Give discounts. Managing business in crisis calls for discounting some essential items. Although the discount is given primarily to promote store traffic, several of your customers’ work hours might have been cut, and they are also facing financial difficulties. Any discount that helps customers manage their expenses better, even for a short time, can earn you their long-term loyalty in the post-COVID era.
- If you’re still open for business, all employees should wear gloves, especially at the point of sale. Your customers should feel comfortable with physical proximity at the exchange of cash. Floor markers are also needed to show minimal social distancing. It is also responsible to wear a mask for all-round protection.
As you continue the manage your business in this crisis, it is important not to give up. The climate may not be right for fruitful merchandizing as it once was, but noone knows where demand will be after the crisis.
All SMBs and midsize businesses must pull together, lean on each other, collaborate, and get the latest information from their politicians on the latest lockdowns and openings. Earn the trust and credibility of your stakeholders in this time of crisis, as you need each other now and post-COVID.
Plumlogix advocates for all best practices during this COVID 19 era and is here to support you in managing your business in these times of crisis. If you are having difficulty riding out these waves, please talk to us to find out how we can be of help.
