Small businesses face many challenges to start up, manage,
and sustain over a long period. These challenges become greater during an
economic downturn or a pandemic. Now this Corona crisis has devastated the global
economies and there is period of
economic decline in the gross domestic product for next few years.The challenge
is to be aggressive and imaginative. Entrepreneurs who survive and even prosper
during hard times try to overcome the
constraints with a new perspective, and
do business differently.So be a leaner, be innovative find more
cost-effective and more efficient operation techniques to improve the business.
Look for costing cutting measures.
Focus on cost cutting only in operating cost and unnecessary
cost
Focus on Core Competencies, mainstream business
Small business must focus on the core competencies rather
than adding other products or services completely different from mainstream
business, as it will damage your brand and reputation.
Drop the extras and focus on what you have do best in it
, innovating it and make most profit out
of it.
Focus on customer service.
Reducing your employees might seem to be a logical way to
cut costs of the companies, but it will affect business in long run because
when economic conditions improve, you will have to start from scratch to train new
employees.
Customer service is the main reason why your small
business will survive so instead of cost cutting we must effort to improve
customer service.Give your customers a reason to invest their money in your
business.
Regular check your cash flow
Check your cash flows and accounting statements
regularly. Businesses that review their cash flow can manage their assets and
liabilities in better way. They will look to streamline wherever possible,
cutting incidentals cost,travel expenses, minimize lines of credit, and payment of cash .Maintain a strong cash stream throughout
the pandemic, in will help you escape liquidity problems.
Improvement in employee productivity
Be sure to improve productivity by offering employee
incentives, such as small bonuses or sales percentages, is an innovative way
and increases productivity. Remember that employees are your small business'
biggest asset.
Implement SWOT Analysis
SWOTstands for strengths, weaknesses,
opportunities and threats and implementing SWOT analysis will help you to
identify your weak points and take certain measures to overcome it.
Don't cut on Marketing Efforts
Many small businesses make the mistake of cutting
their marketing budget as a measure of cost
cutting , but this is time when your small business needs marketing the most
because customers are restless and always looking for innovative buying
decisions by changing product. So don't ever think of quitting marketing efforts
as it will help customers to find your products and services.
Benefit from Current Customers
We've all heard the proverb that, “A bird in the hand is
worth two in the bush”. The bird in the hand is your customer or client that is
sales lead without incurring the costs of finding new customers.
Customer who are happy and contended with the business
product and followup will , give you many more sales opportunities. The key to
survive tough business is excellent
customer services you cannot afford to ignore the potential profits from the
existing customers.Identify their business needs, and do a prompt query
resolution for customer retention. Customer retention is measure to recover
business cost.
Win the Competition's Customers
Expansion of business by increasing new customer/client
base if your small business is going to prosper in tough times. This means
drawing customers from your competition.Offer something more or different than
what the companies offer to increase sales
Review Inventory Management
See if anything can be done to reduce your inventory
costs without sacrificing the quality of goods sold as it will cost
inconvenience to customers.
11The Digital Transformation
Covid-19 has caused digital transformation for
businesses. Let me highlight some points
Video & Zoom Calls
All business activities of managing customer relations like meeting, online
lectures, transactions, , job interviews, and demo for products have already
moved online via video conferencing/Zoom calls.
Communication Chain- With good work from home
policy, it is important to be in loop with the office staff.
Data Theft- Digital transformation has
posed us to risk like internal threats such as data leaks and external ones
such as cyber hacks .Make sure that your
company regularly updates the anti-virus software, keep a 24-hour IT helpline to
stay connected.
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