Business Survival during COVID-19 - RECOVERY POSITION

As the COVID-19 pandemic grows right before our very eyes, it is very necessary for businesses especially “small” businesses, entrepreneurs and gig workers to take some drastic steps to make sure that their doors stay open and services continue to be offered. If your business depends on physical contact with people like salons, massage parlors or gyms; the doors may be closed for now, but it is important to stay optimistic that this will pass as soon as it started.

At Ntare Consulting, we believe and have been telling all our clients and friends that as the world stays in place to avoid the spread of COVID-19, there is a worldwide economic slowdown that is affecting EVERYONE. The idea is that once this cloud lifts, the business world is going to jump into action and there will be a huge demand for services; more jobs will be offered and governments around the world will be working tirelessly to reignite their economies. Those smart business people that took the survival tips seriously will be the ones standing and ready to cash in on their solid preparation.

The following suggestions are almost common-sense measures that every savvy business person should be taking into account. All the recommendations may not fit every business but please pick and choose any and all that apply to you and your business. Good luck, remain optimistic but stay active.

The business environment in this pandemic is very different from the good years.  Consumers spend differently or are not spending at all, which forces you to adjust accordingly. If you have read the other recommendations, they are all precursors to this as the hope is that business will return to normal. We believe that once this pandemic is over, business will come back at a roaring pace; only the companies that took big steps to handle the fallback of business, have increased cash on hand or reduced expenses will be in position to handle the demand.

Here are tips for adjusting your business practice now so that you can be ready for the recovery.

1. Lower inventory costs or cost of services.

How much cash is tied up in inventory? Do you really need to have 100 units of every product sitting on your shelves, waiting for the big order? You may be able to reduce the amount of inventory you’re holding, and free up much needed cash. Can you increase the frequency of deliveries (and lower the size of each shipment) from your supplier? That will allow you to stock fewer units on the shelves and keep more cash in your accounts. While you’re considering your inventory, maybe now is the time to liquidate the worst selling products.

Speaking of your product line…

2. Revamp your product line or marketing campaign.

Consumers are spending very differently, why? They want (need?) to get more value out of their purchases. Position yourself as a great value, and you’ll outlive the downturn in business.
Note that “value” is not the same as “low price.”  It’s tempting to slash prices to drive more demand, but that’s not a sustainable practice.  Someone else will always be willing to lose more money by making deeper price cuts especially bigger competitors with deeper pockets.  Make drastic price cutting the very last tactic you use.  Instead, change your marketing message to highlight your amazing value.

3. Look for opportunities to leapfrog competition.

Your competitors are in the same boat as you. If you can swing it, this is a perfect time to launch a new initiative, take market share from your rivals, and put yourself in a position to accelerate through the recovery. (Think of it like stepping on the gas to accelerate out of a turn.) Now is the time to up your business networking. Not only can you get advice from other business owners but staying abreast of news and industry gossip gives you invaluable knowledge on what’s happening in your industry.

Ntare Consulting is a consulting firm that works on financial management, government compliance, fiscal planning and business solutions for entities both in the US and Uganda. We are a full-service business solutions firm and we help start new and/or maintain your existing business. Our process is to get with you and understand your business needs to tailor a process that can help you at the lowest cost possible.