Coronavirus and business: Staying relevant during the pandemic
It is important to note that while disruption and unforeseen circumstances, no matter the source, are never easy, they do offer an opportunity for a business to stand out and look for new ways to operate and be profitable.
It has become clear over the past few weeks that COVID-19’s impact will be far greater and more devastating than any entrepreneur or small and medium enterprise (SME) could have anticipated. It is also true that the coronavirus will not pass without leaving long-term business and economic consequences in its wake.
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How is your business surviving the new norm due to the outbreak? What about the new taste and preferences of your customers? What about your current supply chain and distribution channels?
Are you looking for ways that you can adapt to the situation and keep your business afloat? Here are some helpful steps to get you started.
Steps
Continue to operate and offer a great digital customer experience: Technology is one of the surviving factors that has allowed so many businesses to continue operations during the pandemic by taking advantage of the Internet and offering virtual services.
This is the best time for businesses to digitise their customer experience through various platforms.
Reduce costs: The recent lockdown across most countries means further cost-cutting to protect cash flow and keep the business running.
Businesses need to perform an assessment of their financial situation, which include expenses, revenue and profitability.
Four ways to reduce costs include reducing non-essential expenses, renegotiating fixed fees to pay-per-use basis, requesting payment deferrals and extension from suppliers and reducing fixed expenses.
Adapt your business model to the current situation: Most business to consumer (B2C) models, which rely on face-to-face, in-store interactions with customers would be greatly affected.
The Business Model Canvas is a good framework to ensure that all elements of your business are being looked at during this time.
Every business needs to be innovative and creative while developing new ways to still deliver their products and services to their customers.
Develop outstanding customer relationship strategies: The current pandemic is challenging businesses to develop new ways of building and developing customer relationships.
Furthermore, the pandemic has brought about extreme economic hardship. This has altered consumer priorities and preferences.
Businesses should empathise with those affected by coming out with steps being taken to help customers, employees and other stakeholders as they strategically leverage the company’s social media sites and customer mailing lists.
Identify the challenges of coronavirus to your business: Businesses need to list all the plausible challenges they might face in order to strategise for different scenarios.
The biggest challenge right now is that business continuity plans (BCPs) are being tested and reworked every day. Other challenges include the disruption of supply chains, generating customers and competition.
Restaurants, hair salons, barbering shops, movie houses, pubs, hotels and guest houses are experiencing low patronage and reduction in revenue with the question, how will these businesses sustain their fixed cost, especially, with loans and debt owned by them?
Converting production: Some businesses are re-purposing their production lines to join the fight against the virus. Fashion designers, soap makers, tailors, perfume producers etc., can consider the current shortage of face masks, hand sanitiser, hospital gowns, ventilators and other critical supplies, and also consider other areas firms could shift production to.
Collaborating with competitors: Businesses have the opportunity to work with a competitor, who is unable to meet its current demand, buy a competitor who is closing down completely or consider a buying competitor’s inventory, so as to expand operations within the industry.
Businesses can use their key partner’s relationship management portal and other resources to collaborate on leads and opportunities.
The writer is the Coordinator, MBA Impact Entrepreneurship and Innovation, University of Professional Studies Accra (UPSA), E-mail: [email protected]