Small-business owners are now using tech strategies to weather the effects of the coronavirus on the economy.
According to Karen Mills, a Harvard Business School Senior Fellow, the pandemic may lead to a worse market crunch than the Great Recession in 2008. Nowadays, entrepreneurs are downsizing or temporarily stopping operations, as the government advised the public to stay at home.
With no adequate cash inflow for almost a month now, many small and medium-sized enterprises, including stores and restaurants, may have to stand down employees or close for good. So how can SMEs survive in the coronavirus recession?
Tech Strategies May Help Small Businesses Endure Market Crash
Based on the estimates by JPMorgan Chase Institute, small enterprises usually have 27 days’ worth of cash reserve. With scientific forecasts telling that the outbreak may last to eight weeks, money could be running out fast.
Mills predicted small companies with a weak infrastructure would not last long in this crisis. What they will need are interest-free business loans and cash buffers to keep employees and maintain commercial space during nationwide lockdowns. She further added that if SMEs remain solvent, a bigger chance for recovery after the pandemic subdues could be possible.
What tech strategies should you employ to keep your business running? Here are five innovative ideas to help you survive the coronavirus market crash.
1. Move Your Business Online
A change in the business model may appear like an arduous task. For many establishments, the traditional brick-and-mortar model has been the norm. However, the COVID-19 outbreak has taught entrepreneurs across the globe to make difficult decisions for your business. Look at how you should bring your business into the internet.
2. Use Online Ordering Systems
Migrate your business to an online ordering system. With most customers staying at home in isolation, a brick-and-mortar shop would be the last place to go. Companies may take advantage of ordering platforms online. By going digital, services and essential products are now available to patrons and new customers.
3. Improve Online Presence
Customers are currently developing new spending habits because of the coronavirus pandemic.
For that reason, mapping out a new marketing plan is essential to your business’ survival. Build your online presence by informing your customers that your business is still around. Ensure to keep all of your patrons updated. Use social media, announce through news stations, send email notifications and newsletters, and pay for digital advertising.
You must begin choosing which new tech strategies will work for your business in the best way possible.
4. Re-Orient Your Staff
Before shifting towards a digital business infrastructure, take time to educate your staff. Train them in new processes and prepare them with changes in the rules. Before launching, know whether your employees are comfortable with the alterations in operations. Remind your staff to begin or continue to keep the social distancing rule, too – particularly your delivery drivers.
5. Build a Support Team
Create a customer service crew that will process orders online. Choose a team of tenacious and adaptable problem-solvers who can handle various customers. Install a working tool and a VOIP service to ensure connectivity. It may sound overwhelming; however, building a support team may take a lot of weight from your back.
Aside from these tech strategies, it is also crucial that you have a recovery plan previously set up, especially when the situation goes awry. On the other hand, do not forget to back up business data to ensure the integrity of all records in your company.