For the past three months, the world’s economy has been at the mercy of a global health crisis. The COVID-19 pandemic has reduced business activity to the minimum, and companies all over the world are reeling from its crippling effect. Recently, however, a new trend has emerged: amid the depression, some businesses are posting record sales and profits. How is this possible?
Well, every crisis comes with opportunities. And if you can adapt your business accordingly, you too can overcome the current pandemic. Below, we highlight some steps you can take to insulate your business from COVID-19 and become stronger than ever.
1. Recognize changes in customer and business activity
The first step to making your business immune to the current crisis is to understand how the market has changed. For example, fewer people are leaving their homes, so online businesses are flourishing, while brick-and-mortar companies are struggling. Customers are spending more on essential goods (like food, groceries, face masks, antiseptic products) and less on clothing, shoes, and other non-essentials. Dispatch companies are in high demand.
2. Set up a strict money management system
As you attempt to reposition your business, you need to manage your funds smartly. Prioritise expenses that are vital for the survival of the company and cut out all non-essential spending. Analyse your business process and identify the positions that are critical to your daily operations and which employees can be let go (or placed on temporary leave).
3. Conduct market research
Conduct in-depth market research and keep track of changes in customer interests and shopping behaviour. This information will come in handy when you want to restock your inventory. Also, carry out competitor analysis to see what you can learn from businesses in your sector.
For example, research has shown that during this crisis, businesses that depend on supplies from abroad are struggling in comparison to those that source their supplies locally.
4. Increase marketing efforts
This is not the time to cut back on marketing or customer retention initiatives. Rather, you need to intensify your efforts and become more aggressive. If you don’t have a system that targets prospects from social media, you need to set one up quickly. With most people stuck indoor, they are spending more time on Facebook, Twitter, and Instagram; you need to maximise these platforms.
5. Move your business online
While everybody else is complaining about the crisis, online businesses are smiling to the bank. Over the past six months, Disney, one of the biggest companies in the entertainment sector, has seen its value reduce by ~25%.
During the same period, Netflix has seen a 34% boost, and Amazon has grown by over 10%. The difference between these companies is that Disney operates mostly offline while Netflix and Amazon are online businesses. To overcome the current crisis and avoid losing your company, you need to streamline operations and move your business online.
If you are looking to create an online presence for your business and you need professional help, send an email to firstname.lastname@example.org right now. A representative will be in touch with you shortly to schedule a FREE strategy call.