Business Survival: It’s About…

June 24, 2020

Small businesses and SMEs seem to always be worrying about one thing...survival when, in fact, they should be contemplating growth and success rather than simply survival. During a pandemic (that we hope will never be experienced again), survival is definitely on every owner’s mind. Almost every business to one extent or another is experiencing lower sales, employee layoffs, and an uncertain future. Small businesses to large, long-established corporations are all worrying about the same thing...survival. Are we going to be able to survive the negative effects of the pandemic? How are we going to survive? 

It’s all about planning and making very prudent business decisions (like never before).

It’s about being agile...

In today’s unstable environment, businesses must be quick to make changes and pivot as soon as possible to meet the current demands of the market place. This is actually a situation in which small businesses and SMEs have an advantage over large corporate entities. Small business owners and their managers can make instant decisions that have an immediate effect on top line sales and bottom-line profits. There is no red tape to cut through or layers of management needing approval before a decision can be made. With a pandemic at hand, decisions must be quick and decisive. 

It’s about marketing...

Customers need to know how a business is operating and what changes have or are going to take place. Customers must be informed as to what to expect from a business. Are masks required? Is social distancing enforced? Are employees tested daily for COVID? Will orders be shipped on time? What are return policies? Are payment terms the same? Even though business has changed, businesses must still market. It is imperative that customers know a business is still in existence and operating to serve their needs.

It’s about cash flow...

Cash has always been known to be king in a small business. Cash flow projections have always been important for a small business or SME to know that sufficient cash will be available in three months or six months to pay employees, service debit, and have sufficient working capital to operate. If cash projections were important in the past, they are doubly important now when sales revenue is reduced. A business cannot be sustained if there is no money to operate; therefore, paying very, very close attention to cash during a pandemic is vitally important.

It’s about satisfying customer needs...

Since there are few monopolies existing in business, customers have always had the choice of who to do business with. The same certainly holds true today. Businesses must understand what their customers want and make necessary changes to meet those needs. Changes might be in pricing, payment terms, value-added enticements, return policies, warranties, or customer support in addition to changes in actual products or services sold. When similar entities are all vying for a customer’s business, providing satisfaction is key to beating the competition.

It’s about building relationships...

Long-term growth in a business is not just about making a sale today. Without question, daily sales are important. What is equally important, however, is building a foundation for future sales, loyal customers, new customers, and repeat business. There is no better time than the present for businesses to start working on developing relationships and building trust with customers. Although a sale today is good, two sales next month are even better.

It’s about the future...

Think not of what is going to happen in the future but what could happen if the right business decisions are made today. The future of any business is never guaranteed, but the future can be made more optimistic with proper planning and execution of critical decisions.