If you own a business and you are surviving – congratulations, you are one of the few.
According to data compiled by Yelp, as of mid-August 2020, approximately 98,000 small businesses in the US have closed permanently.
So for the survivors out there, what are you doing to be open – and be sensible at the same time? How are you managing amidst the chaos? As there is no official end in epidemic vision, what can business owners do to ensure their survival? Let’s take a look at some strategies that business owners should consider now. Some may be obvious, others not so much.
Clear axis: more takeout, more delivery
Probably according to a survey released by the National Restaurant Association in July, about 1 in 6 restaurants in the US have closed on a permanent or long-term basis.
As the epidemic spreads, restaurants and foodservice providers not only need to increase, but also have to get creative with takeout and delivery orders to achieve profitability. Of course, the bill for the dine-in is less than average for takeout, but there are ways to think outside the box. For example, to prevent a portion of the benefit to the distribution application, restaurants may suggest that people call the restaurant directly for an order.
In addition, there may be time to remove less profitable items from the menu and manage costs to work with suppliers when the total value of each order can be reduced. The good news is that customers will make more sense when certain items are removed; They understand that this can happen due to supply chain disruptions.
Retailers and manufacturers, if they have not already, need to consider that a large proportion of their sales will now be epidemic-related and in the foreseeable future.
The meaning may be obvious, such as selling more hand sanitizers and masks, as well as hints about staying safe.
Furthermore, as more people are living in the home, retailers and manufacturers should promote the purchase of new furniture or upholstery that make for a better work from home environment. This may include chairs, desks, cushions or decorations. (Customers can also claim this as a tax write-off for “office” expenses.)
Providing remote consulting and digital services
As a challenge, some in-person services can be remote – at least for the first or few meetings.
For example, home improvement or personal care counseling can be controlled through videocools or sharing of photographs. This reduces the number of in-person meetings, making the customer feel secure as well as building trust with you as a provider in the process.
This can be a great way to promote business, too, as you can ask the customer permission to use screenshots or short clips for your website.
Negotiate your lease
Commercial landlords do not like to lose tenants, but no doubt, they are aware of the enormous pressure on small businesses to remain open.
Take time to negotiate your lease, perhaps agreeing to re-sign for lower rent or smaller space. The landlord may own other properties, and may transfer the business near you, temporarily, to another location.
Looking for alternative sources of capital
Although the Paycheck Protection Program (PPP) expired on August 8, 2020 – with a lack of clarity when it could be revived – businesses still needed capital.
All hope is not lost. If small businesses have exhausted their traditional sources of capital, they should consider private lenders, which have fewer requirements than banks, to get approval for loans quickly. Multiple essential cash may be available as working capital within a few days.
Of course, some of these strategies are not exactly pivot; Instead, they are more like an adaptation. This is completely fine.
As cases lighten up and quarantine lift, you can return to some of your former services. However, you will be satisfied to know that the changes you make in your business, including additional services, can also be put to work.
Like, you will grow stronger than ever.