The times are hard and uncertain for everyone. But of all, the businesses have suffered a lot. The lockdown paved the way for the economic crisis, the continuations of restrictions on the movement and gathering has further slowed down the pace of business. Things are normal as they used to be. Amidst all the COVID-chaos, one just cannot sit idle at home. Entrepreneurs, Businessmen, and other ambitious working professionals have come up with new ideas of working their things around, like going online and digital and have tasted success. Every business model is different and comes along with a set of risks and potential. So, if you are into business or have started a small scale venture recently and are interested in knowing some useful advice to keep it floating, then here are your tips and tricks of the trade.
- Always Consider the Big Picture: Most businessmen consider and take action on immediate problems. That’s understandable as it is a normal business scenario. However, one always needs to look at the big picture. Your actions and decisions should be in light of bigger and future problems if you are asking how to do this. Then, as per your business model conduct the SWOT Analysis (Strength, Weakness, Opportunities and Threats) and make decisions. For instance, you are into an online gifting business having a warehouse where you have a stock of unique gifts for girls and boys. Then, you come to know that caretakers of the warehouse are involved in the overstocked or understocked of the supplies. Your immediate reaction would be to fire them. But, you need to analyze why they were able to do such a thing. It is because of the managerial loopholes. So, the best is to strengthen your management team at the warehouse levels.
- The Money Matters: Small business owners are advised to spend money wisely because of lack of income at the initial stage. So, when such entrepreneurs hire staff to work for them, they do it at a lower cost, which is not bad. However, it is seen that money is directly proportional to the experience and expertise. For example, if the employee is a fresher, he or she will work less, but an experienced one will demand more. But hiring a person at 20% more cost who has a 40-60% more efficiency than the fresher is always a win-win for the business, especially in difficult times. The business they will bring to you from their experience will be much greater and of value than the payment you are making to them. Always, vouch for the quality and not money.
- Maintain Cash Flow: Small business owners need to ensure that they have access to cash flow all the time, most importantly, in the period of crises. Understand the terms and conditions of loan requirements from the bank as it can be the first line of credit to fund small-cash flow problems. Tap into savings, liquidate stock holdings, borrow from family, sell gold to maintain cash flow in the business.
- Focus On Quality: During the hard times like the COVID-19 and it’s after results where the businesses almost have come to the shutdown phase, cutting on cost, firing employees, and making changes in the business model is understandable. One thing that a small business should always focus on quality. Providing quality throughout is the key to survival even during the COVID-19. If you are selling perfume for girls, you can change the pricing, cut on the quantity, but not sacrifice the quality.
Hope your business keeps going and growing despite all the challenges.