Negosentro.com | What can small businesses do to minimize COVID-19 impact | Stoppage of productive activities, drop-in demand and investments, retraction in world trade and exports are some of the negative impacts have accompanied the advance of the COVID-19 pandemic on the world economy. The US economy lost more than 700,000 jobs in March, compared to the 100,000 expected, according to the US Bureau of Labour Statistics. It is the first time in 10 years that the monthly report has shown jobs lost and it still doesn’t show the full effects of Coronavirus because it includes only data through March 14.
Businesses in many industries have been hit by these unprecedented times. The recent World Economic Forum report shows that lengthened global recession is the most feared risk to threat businesses. It is expected that merchandise trade can decline up to 32% and international airline passengers will drop up to 80% as the majority of countries have completely or partially travel restrictions in place. Asian Development Bank estimates that the cost of the coronavirus pandemic could reach $ 8.8 trillion, depending on the evolution of the crisis and the extent of government responses.
Like any time of crisis, think outside the box and reinvent the business is critical to go through it.
With social isolation and the closure of establishments, people have created new eating, leisure and consumption habits. Among workers with access to benefits, changes in habits include greater adherence to streaming, reading and delivery. But it is undeniable that the extent and intensity of the problems and situations now experienced will tend to mark the future behaviour of consumers, impregnating a vector with the greater weight of the rational component for a long time and, perhaps, fading as the lived experience becomes part of individual and collective history.
But the rational component will inevitably be more present, and communication, relationships and proposals, even in themes where emotion is the dominant factor, such as tourism, luxury products and brands and others, should have more rational support. to suit emerging behaviour
Here we outline what small businesses can do to minimize the impact of Coronavirus.
The retail industry took a big hit when consumers started to stay at home due to the lockdown in many countries. As people are spending more time at home and online, adapt the business for direct delivery or using delivery service is an exciting alternative for retail. Even if the entrepreneur has to close your physical store, you must keep contact with customers through marketing strategies and offer services and communication to keep the client engaged.
Because with the escalation of the crisis, consumers tend to focus their spending on more essential goods. At Italy and Spain, countries with more cases, searches for fashion products dropped more than 40%.
Actions that can minimize the impact For fashion retail, betting on complementary services, such as free return shipping and express shipping, can be a useful strategy to encourage consumers to buy online. Last year, a study released by USP showed that more than 70% of consumers are likely to consider a purchase from the same retailer if they have a positive return experience.
Another possibility is to check the option and necessity in your region to produce clothing and accessories protection for healthcare professionals. But you need to find out because this type of product has standards.
Working with micro-influencers, profiles with 10 followers or less, is also an effective strategy to increase sales in the local community. According to research about micro-influencers, 70% of millennials are consider word-of-mouth from their peers during the purchase decision process.
Restaurants and cafes
The establishments that decided closing should minimize costs, renegotiating terms with suppliers, and reducing staff. However, if you choose to keep the doors open like other small businesses, there are different ways that you can keep the business running even during this crisis. Here are some examples:
- Provide an online system ordering
- Offer packages for birthdays
- Promote advance sale (vouchers)
- Implement interaction news with the client (e.g. lives teaching recipes).
The construction industry. At this time, when people are at home, it can be an opportunity for them to notice the need and want to make minor renovations or change the furniture. Maintaining communication with the customer can be a possibility to be remembered.
Invest in SEO is also an effective marketing strategy for companies in the construction industry. Promote content that answers your target audience is vital to put your brand out during these challenging times.
For example, HK Certifiers offer services based around construction certification, and on its blog, there is content related to the main questions that customers have about the accreditation.
With the travel restrictions in more than 100 countries, the tourism industry is the one that has felt the biggest hit so far especially for small businesses.
It is crucial to anticipate and negotiate with the client, encouraging a reschedule of bookings instead of cancellation. Expand your online sales channels and assess opportunities for improvement in your company: cost reduction and increased team productivity.
Strengthen media presence digital to stay connected with your client. Some travel companies are investing in viral content to keep the customer engaged with the brand. Memes about the places travellers want to go when all of this crisis is over are a buzz on the internet.
While the travel restrictions in many countries still in place and probably will be for a while, you can cut overhead costs by offering freelance jobs instead of hiring someone full-time. There is a lot of people who where stood down from their current jobs and now is looking for new ways to earn money. For example, an executive secretary could be looking for freelance jobs as a virtual assistant. It is a win-win situation. This is a great way to have someone with great qualifications and experience working for you for an affordable price and its a nice way to earn money while working from home during this COVI-19 period.
Gabriela Damaceno is a journalist and head of online content for Media Shark, an app Development agency, Gold Coast. She is representing HK Certifiers, a company that offers Construction Certificates services. You can connect with her via Linkedin.