You may read this post at a time when the networks are flooded with information, news and endless recommendations on how to face the Coronavirus crisis.
This topic occupies the main trends in all social networks because a global threat of such dimensions rarely arises, and it is obvious that the situation leads many people to feel concerned about their financial and health future.
I don’t really want to stop to talk about the same thing anymore. I do not pretend to be, or to seem like an expert in coronavirus because there are many very good ones for that. Nor do I seek to bore you with more redundant recommendations about washing your hands and “staying home” and all those things that already saturate the networks.
I want to briefly but seriously address a collateral issue that we should occupy ourselves with and has to do with the economic impact that this crisis will have directly on our pockets.
Hence, I decided to write something that is useful to my followers. I want to give you ideas and possible actions to take in your business to overcome this crisis.
The Economic Impact of the # Covid19 Crisis
And it is that the medical recommendations added to the provisions taken by each of the state governments have a common denominator and it is the cessation of a high percentage of commercial work.
As you know, we suddenly find ourselves with the almost total disappearance of tourism, cessation of airlines, suspended educational system, closed businesses and shopping centers, stagnant industry and partially functioning banking, to name just a few businesses that have their operations interrupted. normal.
Many of the large companies are concerned about their inability to continue operating 100%, but those who surely see their pockets most affected are small companies, service providers, small industry and informal businessmen who work and earn from day to day .
Companies that in the short term will find it difficult to pay their employees, pay their fixed expense commitments and even delays in paying their suppliers.
Experts say the economic recovery will be slow once we emerge from the pandemic. But the most critical thing is that the end of the health crisis is still uncertain.
However, the future in the short and medium term for small and large entrepreneurs is worrying because they will have to continue subsisting as their own governments manage to have some control of their own cases of infection and free trade.
But this will be very slow. It is hard to read but it is the reality and the faster we understand and act on it, the faster we will be able to find alternative ways to generate income that will help us overcome the crisis victorious.
Of course, not all businesses receive the same impact and not all will be able to float in the same way, but the worst thing you can do especially at this time: is to do nothing.
If one thing is certain, it is that governments, with very few exceptions, will hardly take care of supporting trade with compensation measures, and even if they wanted to do so, it is something extremely complicated and expensive.
Therefore, as an entrepreneur, it is best to take immediate action so that the effect of this epidemiological crisis impacts you as little as possible. That is why here I share some practical recommendations so that you can achieve it:
Immediate Actions to Overcome the Health Crisis
1. Stay calm and prepare a contingency plan
As in any emergency situation, the first recommendation is to remain calm. Getting upset and stressed doesn’t help at all. We are all immersed in the crisis and what we have to do is get ahead.
Hence, thinking with a cold mind is more effective than thinking with anguish.
Try to stay calm and together with the leaders of your team you must prepare a contingency plan that includes actions for the next 15 days, 90 days and even for 180 days.
This is because we do not know how long this can last and that is why you must contemplate different scenarios and consciously know what to expect.
2. Talk to your suppliers and negotiate your inventory
The second action you must take is to recognize that your sales will surely drop a bit. What we are looking for is that the impact is the minimum but still you must accept that you will have a drop in your sales.
You should contact your suppliers and let them know that in view of the coronavirus crisis you are taking action and are forced to temporarily reduce orders.
At the same time, you must send an email letting them know that you will meet your pending payment commitments but that you request to negotiate a temporary extension of the deadlines while you manage to recover your income necessary to make the payments.
It’s important for your providers to know in order to keep the relationship healthy.
3. Ask your staff to support you remotely from home
Not all business operations can be moved home. But many can be moved. And in view of the fact that we are unable to go to the office or the premises, we must appeal to the support of your trusted people.
Almost everyone has an Internet connection and a telephone to continue performing many of the administrative tasks and they will surely be willing to continue working from home so as not to expose them and help the company be impacted as little as possible.
Similarly, there are a number of tools available to conduct online meetings, transfer confidential documents, organize work groups, and even organized instant messaging.
4. Implement a store immediately on Facebook
There are many ways to do e-commerce but they take some time to build. But in times of crisis, Facebook can be a very efficient alternative tool to continue mobilizing your products and receiving orders.
You must request online support from a digital agency to quickly mount an online sales strategy using social networks combined with home deliveries. This can take 48 to 72 hours and there are many messaging systems in place that will be the perfect ally for this purpose.
It is very likely that your sales volumes are not close to what you normally sell in your local but surely you will be able to recover a good percentage, which is better than having your business completely closed and inoperative.
5. Immediately inform your customers about your online sales strategy
The next thing is to communicate to your customers effectively and clearly about your preventive actions and the different options they can find to continue requesting your products through your social networks.
You must consider within the plan, the cost of the courier and define return policies, which are essential to sell online and build trust in buyers. You are probably not ready for this, but it is time to sit down and work it out.
Not all businesses receive the same impact and not all will be able to float in the same way, but the worst thing you can do especially at this time: is to do nothing.
6. Build trust by complying with prevention measures
Remember that during this health crisis people are very afraid. Nobody wants to expose themselves. Therefore, it is essential to create trust by observing the minimum prevention measures and letting your clients know that you would not expose them for anything in the world.
Make sure that the people who deliver products arrive properly identified, with gloves, a mask and that they know the importance of keeping a safe distance.
This will help your customers feel more confident and continue to order your products.
7. Get advice and reduce your expenses
The most difficult decision in a situation as critical as this is to reduce costs and even personnel. It is something really complicated and even delicate because you must protect yourself from violating labor laws in your country.
Therefore, it is advisable to immediately consult a good lawyer and plan the cuts that will be necessary in operating and administrative expenses in order to survive.
Cutting some jobs is hard on everyone, but the trade-off is between keeping your entire staff or allowing your business to weaken to the point of bankruptcy.
8. Offers added value
Whatever your business, especially right now, it requires you to make a huge sacrifice to deliver even more value. You have to go the extra mile and do things that you didn’t do before.
Offer your clients advantages that you did not have before. Competing will require even more creativity and innovative services.
For example, if you have a travel agency or are a tour operator, find out about the most vulnerable destinations and choose alternative destinations where there is no risk. Call your clients and offer them alternative packages to those destinations.
Of course, offers and insurance are very important to mention to increase confidence. Remember above all that people are at home but it won’t be for long. Sooner or later people will seek destinations to get away from the hustle and bustle and seek some tranquility.
Your own or outsourced home delivery service can be part of that added value that you did not use before and today is the time. These things can take weeks to implement, but you will have to do it at lightning speed.
Just don’t be afraid, try not to panic. Clarify: At no time do I suggest or pretend to say that all this is easy, far from it. On the contrary, when we are against time and in a critical environment it may be more complicated but you will have to try something to avoid letting your sales come to zero.
See also 👉 How to make cleaning products at home
Learn to Use the Internet for Your Business
Finally, it must be recognized that today more than ever the Internet is once again that powerful tool that will save many from bankruptcy.
Learning how to do digital marketing seriously and knowing how to sell is decisive. The most important requirement is creativity turned into a plan.
- If you are a teacher or educator, use educational platforms to continue serving your students and even sell other courses.
- If you sell food, use services like UBER Eats or Glovo to keep selling
- If you are a lecturer, organize an online seminar
- If you have a clothing or book or toy business, you can sell through facebook
- If you have a nightclub, you can contact a recognized artist and organize a virtual party
- If you are a fitness or zumba instructor organize online classes that people can take from home
In short, there are always solutions and alternatives. Undoubtedly we are living an event that will mark history and we are part of it.
We must get ahead as entrepreneurs, show what we are made of.
Remember what we have always said: speed to adapt is the greatest competitive advantage of every entrepreneur.
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