Small Business recovery post-Covid will take time and won’t be easy, but it can be done. As we explained in Part I of this post, small business will need to plan and prioritize. Regardless, success will require transparent communications, an agility culture, wise financial management, scenario-based planning, and strong customer retention focus. This is the second part of our summary of the most relevant tips for successful recovery.
4 more tips for successful Small Business Recovery
- Diversify markets. Part of an agile culture entails deciding whether your current market is struggling too much and thus affecting your sales.
- Explore shifting markets, either geographically or redefining your target.
- Consider focusing on a narrower niche, or on the contrary, expanding market scope.
- • Based on demand, evaluate additional product lines, or parallel businesses.
- Maintain open and transparent communication channels with all relevant stakeholders. This is key for securing all the support needed for business operations in times of crisis, as well as generating trust in all parties involved.
- Customers must have all information that might affect services, contracts, etc.
- Employees should feel safe in their working environment. While at the same time aware of difficulties the company is going through, and how it will face it. The more they feel part of a team and know their role in the crisis, the more proactive and engaged they will be.
- Suppliers should work as one with your business and provide timely status of deliveries.
- Creditors and investors should be involved in renegotiating loans, payments, etc., if need be.
- Adopt new technologies. Evaluate technological enhancements that might help your business run more smoothly and prevent pandemic-related workforce disruptions.
- Tools for designing contactless experiences aimed at strengthening employee and customer safety.
- Consider automation tools or apps for routine, repetitive tasks.
- Although investing in new technologies might seem a counterintuitive financial move, it could be a lifesaver now, and later.
- Nurture existing customer relations. The cost of acquiring new customers can be as high as five times more than it costs to retain your existing customers. Therefore, keeping your customers and meeting their expectations, can help increase profits. In fact, research shows that a 5% increase in customer retention, can yield profit increase from 25 to 95%!
- Identify loyal customers, turn them into your own brand advocates!
- Consider a customer retention loyalty program.
- Avoid lowering prices for staying competitive, as this will only affect your financial health and will pull you into price wars.
- Plan for recovery now. So, your company’s ready to hit the ground running after the pandemic.
- Build different scenarios, with a set budget and financial estimate for every different forecast.
- Work on business continuity, with an eye of business as usual after the crisis.
- Develop a timeline with “return to normal” variables under each scenario.
- Document a road map of how the company reacted to the crisis, with lessons learned for increased resiliency in future crisis.
- Instead, concentrate on keeping existing customers happy and satisfied by providing value for money and subject matter expert advice.
Small business recovery is key for U.S economic recovery. The Estafeta team has continued to work closely with our clients and suppliers, in order to provide the best service. We look forward to hearing from our customers, so we can understand how to better meet their expectations.
We’re all in this together!
Recent Comments