How SME survive in the Corona Virus (COVID-19) Crisis?
How SMEs survive in the COVID-19 Virus Crisis?
Definitely, whether large or small companies have been affected by this disease and mostly is in transportation, retail, consumer sectors, service businesses, and tourism-related businesses. Yet, the business that inevitably gets the greatest is an SME that has less working capital than other businesses and has export rates to China about 13 percent, so this makes them get stuck. When there is no end in sight for the coronavirus soon, if the entrepreneurs are not preparing themselves enough to cope with it, they may not be able to stay still anymore.
However, there is still a chance, so we can turn it into an opportunity. If you are one of the SME operators, who are looking for ways to change from or to increase revenue, read these guidelines and apply it to your business, it may be another way to help.
1. Adapting financial strategy
Tightly fasten your seat belt! Change your financial strategy! In this crisis time, entrepreneurs have to leave out unnecessary expenses. Financial strategy becomes another important thing that must be concerned, so even if we can’t prevent sales decline, we should try to maintain the numbers in the account at least. It feels more secure to have cash or tangible money in your hands at this time. Therefore, we might reduce the number of employees or focus on stock clearance sale, get cashback and reduce sunk cost, as well as new investments, which may not be the answer to survive.
Another, reducing costs or investment and turning to pay more attention to the market demand because if the products that we sell aren’t needed by the customer, it definitely forces the loss. Finally, entrepreneurs take this time as a break time to analyze the real problems of their business and look back to find out what they missed, improve it and come back with better business.
2. Retaining existing customers
We can make it by the development of the new products or services for our valuable customers we already have. It is a way to increase sales channels with the least risk because finding new customers is more difficult than selling products to existing customers. Therefore, developing new products for existing customers, who are trustworthy and no need to start getting to know each other again seems to be the easiest way. This may be achieved by studying the problem, collecting feedback, talking to customers, and having regular interaction with them. if not, it will be just a single sale and then end.
Try to alert the customers by promotions, rewards programs, product updates and any other content you think they interest and relevant. Make them feel special to us, it will help to impress and build a Brand Loyalty very well. In addition, we should find out the problem of the product or service, are there any faults? or what the customers do not like? then try to improve it, I guarantee that if the first sale impresses the customer when they need the products or services that we provided, we will definitely be the first choice of them.
3. Finding a new way to gain extra income
Doing an existing business may not be enough in this crisis. So, entrepreneurs who have special talents or interests can find extra income from there. This way is risk diversification of your business because even the income from the main businesses decreased but the expenses do not. Doing a special job is another way to survive especially, online work that you don't have to go out and risk.
4. Create Online Asset
Even in this crisis, we must not let the opportunity fry away, using this time for investing to create value on online or internet seems better. It is not only making money but also getting value from followers, being famous or having many fans is an extension of business opportunities. Moreover, creating content assets or giving information and knowledge even if it is not relevant to our business to attract consumers and gain more traffic is a good way. Nowadays, the more communication in different ways will attract more people and a group of people that are called organic to know more about brands as well.
5. Looking for new customers and building good relationships with them
It can be called to expand the customer base which might sound difficult to do during this crisis, but there is a way. First, making a great first impression is the key because sincere communication and empathy for the consumers create a good brand image and the relationship of the brand with the buyer, so instead of seizing the chance to get their money, we need to rely on each other. Nonetheless, looking back at people who are not our first target and try to find out what those people really want or what will you do to meet their needs? Also, adjusting our products or services to be more acceptable price or be accessed to all ages can help as well.
6. From Reactive to Proactive business
Nowadays, entrepreneurs must make a strong decision, you will fight or flight. Especially during this recession, If we let our minds deteriorate, then it will make us even more depressed and exhausted. Therefore, entrepreneurs must be mindful and try to think about changing the way to run your business. From being reactive to proactive business is a good way, you will aware of the strengths and the weak points of yours and your competitors. The most important one, we have to always seek the loophole and opportunities. Now, using new technology to facilitate the customers is considered to be a great advantage to the business, especially, increasing sales channels by focus on online channels is a really good way. We have to adapt and bend ourselves to any situation for more opportunities and income due to the customers’ behaviors always change, so don’t let our business become weak because of COVID-19!
Even in this terrible crisis, if the entrepreneurs are conscious and always ready to handle or try to change perspective, it is a good opportunity for us to see actual weaknesses that need to be improved and look for new markets for our business. :-)