The whole world is bracing for a massive economic slump as a result of the Covid-19 Pandemic. Nations around the world are preparing not only for contracted growth of their economy but for a coming recession too. Big and small businesses alike are already suffering from closures, slow sales and outright work stoppages. It has been a strange 2020 so far with no relief in sight.
Throughout the history of the world, countries and economies have gone through periods of growth and recession. For example, the United States went through the Great Depression during the early part of the 20th century and the entire world benefited from the dot com boom during the early 2000’s. Despite the rollercoaster events in history, there are businesses that not only survived but thrived during these tough times.
Luckily, there are lessons to be learned as the world grapples with the highly contagious Covid-19 Pandemic. Not only is it re-writing the way we do business, it is also giving us valuable insights that businesses should know about as the world goes through this most recent global recession.
Here are some ways you can pull through during this economic downturn.
It is important for businesses to act swiftly during economic downturn or pandemics. According to scientific models, the Covid-19 Pandemic could last 18 months and small businesses are the most susceptible during these times. The most important thing for businesses to remember no matter how big or small they are is to act immediately.
For example, there should be policy in place on how current stocks should be handled. Guidelines regarding employee safety should also be reviewed and put into action. With regards to inventory and ordering, contacting suppliers and following an adaptive inventory system can help replenish raw materials so your business can go on as usual.
The faster you act, the more resilient your business can be. It is also good to remember to be flexible during times like this because Darwin said that only the most adaptive are likely to survive times of crisis.
How Much Money Do You Have?
Money is the lifeblood of businesses. Knowing how much money you have will allow you to important decisions. If you know how much money you have, you will know how much you need to cut, sell or how much more you need in order to survive.
Aside from this, you also need money in order to buy raw materials or stock. It is also needed for your worker’s salaries. Basically, money is an essential survival tool for businesses and knowing how much you have will make it easier for you to make informed decisions.
Communicate With Customers
In today’s digital age, it is now easier to talk to customers thanks to social media. In fact, many people expect businesses to have at least 1 social media account. Social media is not just for promoting your business, it can also be a tool to communicate with customers.
Take time to communicate with customers regularly and not just for promoting your business. Customers are your primary source of revenue so it is important to understand their needs during this time. Their feedback can become a tool on how you can invest or innovate better. Giving value to your customers’ needs and wants will give you valuable insight and help you run your business better.
Use Existing Assets
With low sales, money can be tight during times of pandemic so it is natural to cut cost. One of the ways of doing so is by repurposing old content and managing assets you already have. For example, you can re-share most popular blog content. Not only will this save money and time in the creation of a new blog, it can be seen by new audience without having to spend another dollar.
You can also look into boosting your email marketing. Not only is this a cheap marketing strategy, this will allow you to reach customers who are already used to receiving content from you.
Invest In Your Brand
Customers are on a tight budget too so they might not be spending as much as they used to. However, this does not mean to say that they no longer want to hear from you.
Take this time to invest in your brand. Continue to engage customers especially on social media. Communicate with them regularly, ask them how they’re doing and tell them what you’re doing too. Customers want to feel that they are important and engaging them regularly will make them feel valued.
It may take some time before the whole world can finally be Covid-19 free and recover fully. The impact of this pandemic is far reaching and still unknown. However, businesses need to know what to do during uncharted times like this so that they can survive and thrive.
Since many businesses are forced to close their doors in response to social distancing measures by many governments, perhaps focusing on online selling can help you build connections with customers and tide you over until this crisis ends.