Regardless of whether the pandemic ends in a month or two or is long term, small business owners must be ready to change, reevaluate, and change their business strategy to resist the storm (and beyond).
Analyze your current burn rate in both normal and “bear bone” scenarios.
Think of excessive marketing, rent, the size of your business, and other expenses that can be reduced without sacrificing your business’s quality. Efficiency is the key to succeed and outperform competitors. Many companies work to excess, which is the perfect opportunity to gain an advantage by running more efficiently.
Make sure the optimizations you have made are well thought out. As CEO / owner, you only have so much time and bandwidth. The key is to run as thin as possible without sacrificing quality.
Think about complementary adaptation to current market trends.
Current market trends will be difficult to understand and predict, but this could be an advantage. By quickly taking the time to understand your market and the world’s current landscape, you can once again optimize your company’s positioning. Your company may be able to provide your products or services remotely than you thought. A repositioning of the brand may even be appropriate. If you can take advantage of this now, you may have a whole new source of income or a whole new way of doing business when you’re quarantined. Your business could range from a company that focuses solely on personal services and sales to a company that analyzes these sales from two perspectives: personal and / or online.
Some companies are currently suffering more than others. Study those who seem to be going through this crisis and learn what they do differently. Take a look at your direct and indirect competition to understand what others are doing and which strategies seem to be most effective. While some strategies may not apply in all industries, use what you can, and customize them to suit your own needs.
By understanding how your competitors position themselves during and after this crisis, you can prepare to gain an advantage when companies return to normal.
Think in the medium term: does something change the way your customers think?
While the pandemic continues to dominate in the short term, it is important to think about what will happen in the medium term. Will your customers change their way of thinking or acting after the pandemic ends? Some may prefer to use services or buy products remotely, even after quarantines have been lifted.
You need to consider whether traditional business models still make sense after things have returned to normal. Take, for example, experiences with limited capacities, such as theaters, airplanes, and cruises. Each of these sectors needs to consider how the traditional business model will affect customers in this new context. Like companies in these industries, you wonder how your business model and strategy should change accordingly.
You can take this into account and evaluate the assumptions you made in the medium-term business strategy if you know which of these assumptions apply and which should be adjusted accordingly.…