The outbreak of the COVID-19 pandemic has transformed the business landscape as we know it. Some industries have suffered substantial losses, others have thrived, and the overall business environment has undergone huge changes compared to just a year ago.
Companies and consumers are still very insecure about how to deal with the new reality, and when (if ever) they can expect things to switch back to normal. This especially goes for young startups who are only just getting into business, with financial plans built for significantly different circumstances.
Which Problems Are Businesses Facing?
The troubles that companies are coping with at the time are numerous, but they basically fall into three main categories:
- Demand problems
This is probably the most common COVID-related issue for companies. Obviously, the global economy has suffered a great blow because of lockdowns, closed borders, and rules of social distancing. A lot of firms have gone out of business, a lot of people are getting fired, and, as a result, consumers are inclined to decide that this is not the best time to spend money. This, in turn, means that a lot of businesses are struggling to find buyers for their products, whether their clients are individuals or other businesses.
- Supply problems
On the other side of the coin are businesses that are actually profiting because of the pandemic but failing to fulfill the new demands of their customers. Inefficient supply chains and the inability to scale quickly enough are hurting their bottom lines as well.
- Safety protocols
Protocols that save lives are necessary, but depending on the industry, they can get very expensive. And for some businesses, it’s literally impossible to stick to them without virtually going bankrupt.
Now, here are a few pieces of advice on how to handle these problems and make your startup as pandemic-proof as possible.
1. Move Online
Moving online as much of your business as possible can help minimize the consequences of all three mentioned issues.
When it comes to demand, online retailers have thrived over the last months. We’ve always known that online shopping is going to grow in the years to come, but this growth has been super-accelerated by the outbreak of the pandemic. People are buying from home in order to stay safe, so a serious investment in improving your online offer is an absolute must.
Plus, moving some of your inner business operations online will save money, and for some startups letting people work from home, it is the only way to meet safety rules and precautions. All this will probably mean updating your technology stack, but remember, keeping your employees safe is more than an ethical issue. Evidently, it also affects your efficiency, as an unwanted massive outbreak in your company can cripple your business.
Finally, you’ll need to teach your team to use new tools and help them adapt to this new reality. It can take time and patience, but sometimes there’s simply no other way. Either way, having your employees learn a new trick or two surely isn’t going to hurt your company in the long run.
2. Invest in Digital Marketing
When the business landscape evolves, it’s obvious that marketing approaches will change as well. If consumers are rapidly moving to online shopping, attracting them will best be done with the help of digital tools. So investing an additional couple of dollars in a digital strategy is a smart move, even in a tough financial situation.
The calculation is simple – if the economic crisis means you’ll lose some clients, you’ll also need to find new ones to compensate for this loss. And there’s no better place to look for them than the online realm. Not just because of the growing online market, but also because digital marketing allows you to easily find and accurately target the audience that cares about your product.
You’ll want to be very convincing in terms of why your product is different from your competitors’ and focus on its unique features. Additionally, in these uncertain times when people tend to be quite money-conscious, you should insist on how it will bring concrete value to them. Try creating marketing messages that will persuade them that your product is not an expenditure but rather a solution that brings them or saves them money.
3. Determine Your Priorities
When it comes to supply issues, sometimes they don’t at all depend on you and you can’t make things perfect. Sometimes it’s not even up to the suppliers, since transportation around the world has been substantially slowed down. So there will be times when you’ll fail to deliver what you promised and you’ll just have to live with it.
To minimize the damage caused by these circumstances, it’s best to talk openly to your suppliers about prioritizing certain goods or materials that you find vital for your day-to-day operations. If they can’t handle all your deliveries on time, you can suggest that they at least focus on the goods that bring you the most money or otherwise help to keep the business running.
4. Offer Refunds and Incentives
Top-class marketing is one way for new startups to acquire customers. Nevertheless, the fact that more and more consumers feel financially insecure means you’ll need to take your offer up a notch with discounts and incentives. It doesn’t have to be anything huge, just a bit of an encouragement to make the consumers feel less guilty about spending money.
Furthermore, in the times of the pandemic, consumers are reluctant to buy. That’s not just because of their financial concerns but also because they’re worried if their order will be delivered in time. Offering refunds for late deliveries may seem risky but it can be very stimulating for the customers, especially when it comes to purchasing time-sensitive products.
5. Be Transparent
Whatever you do and however you manage to solve the problems of supply and delivery, never try to trick your customers or hide something from them. If there’s a problem that may affect the quality or speed of your service, be open about it.
People will appreciate it and you definitely won’t seem unprofessional for being unable to guarantee top-level service in the middle of a global crisis. What they will find unprofessional is making promises you can’t fulfill. This can be very dangerous in the times when consumers’ decisions increasingly rely on reviews and ratings by other (un)satisfied customers.
In Closing: Stay Alert
At the end of the day, making your business entirely pandemic-proof is probably an impossible task. Right now, the pandemic is still too unpredictable in terms of its length, its further development, and its full effects.
However, taking the measures we’ve talked about and incorporating them into a solid, long-term financial planAuthor Bio:
Sarah Kaminski is a freelance writer and social media marketer. She works with a number of
small businesses to build their brands through more engaging marketing and content. is a good start. And frankly, that’s pretty much all you can do at this point. Closely monitor the situation, revise your plan when circumstances change, and try making your organization agile enough to adapt to new conditions.
Author Bio:
Sarah Kaminski
Sarah Kaminski is a freelance writer and social media marketer. She works with a number of
small businesses to build their brands through more engaging marketing and content.