HOW CAN A SMALL BUSINESS OWNER SURVIVE THE CORONAVIRUS?

HOW CAN A SMALL BUSINESS OWNER SURVIVE THE CORONAVIRUS?

As most of the UK is in quarantine to help stop the spread of COVID-19 we will by now be getting used to the “new norm”. How can a small business owner survive the coronavirus?

Your business may now be feeling the pinch, customers are staying away but the bills still need to be paid. So, what can you do as a small business owner to survive these challenging times?

If your business is one of the many affected, the key is not to panic. With many thousands of us in the same predicament, this isn’t the same as facing a business crisis alone.

The government is promising an unprecedented level of financial support and providing updates on the latest news regarding business and the coronavirus.

In short, this is what aid they are promising:

• Guarantees on loans to businesses worth at least £330 billion.
• The Coronavirus Business Interruption Loan Scheme (CBILS), which will lend up to £5 million to viable UK businesses that would otherwise be turned down due to inadequate security,  with no interest for the first six months.
• No business rates for 12 months for shops, restaurants, pubs, theatres, music venues, and other leisure/hospitality businesses.
• Cash grants up to £25,000 for businesses in premises with a rateable value under £51,000.
• 700,000 of the smallest businesses will be eligible for cash grants of up to £10,000.
• Statutory sick pay relief for small and medium-sized businesses.
• An expansion of the HMRC ‘Time To Pay’ scheme for businesses struggling to pay their tax bills on time. To find out more, call HMRC’s helpline on 0800 0159 559.

How can I retain customers during the coronavirus crisis?

Now is the time to get those creative juices flowing and think of ways you could deliver your business with minimal customer contact. Some ideas could be:

• If you are in the services industry then see how much can be done remotely by providing your service online, such as consultations, lots of fitness instructors are already trying this approach.
  There has been a rise in hairdressers and beauticians using various social media platforms to stay connected to customers by giving them handy and helpful tips in video format, is this something you can do?
• If you are a tradesman, think about providing your customers with DIY tips, decorating tips, etc. They’ll remember you and thank you for it!
• If your business is retail, shift as much as you can to online sales.
• For the food and drink sector, think about changing to a delivery service.

The one thing all businesses can do is up their social media presence. This is where all your customers are right now, staying connected with family and friends. Now is the perfect opportunity for you to engage with them, remind them you are still there, and work together to find a way you can still serve them.

This crisis is bringing us all together in ways we did not envisage, and we all want to help each other. Your customers have never been so willing and ready to adapt their behavior so what can you do to meet them halfway?

Communication is key right now, keep that going regularly, letting them know exactly what you are doing during the crisis, and how you are safeguarding their health if you do happen to come into close proximity.

How do I keep my business running?

Right now, this is all about survival not the growth of your business. Don’t feel like a failure if you have to put your plans on hold. To stand a chance of staying in business we will do better by going into the “survival mode”. This means to make just enough to keep ticking over while reducing overheads as much as possible.

1. Trim non-essential spending where you can

An example of this would be suspending your growth-related activities such as advertising on a temporary basis and operate solely through social media.

2. Think in terms of ‘cash flow’ rather than ‘profit’

If you are still able to make a profit, then this is great. But remember a small loss beats a big loss. Have a think about where you can take a managed hit to your profits to generate ready cash to pay bills as needed. This will help keep you going.

3. Cost-cutting

Is there anything at all that your business owns that could generate revenue? Do you have unused stock lying around that could be sold on elsewhere, even at a small loss? Can you sell anything directly to consumers and skip the middleman? Think about what you have that other businesses might need right now.

4. Your employees

If you have employees to look after, encourage them to think of ways that they could continue to work under the new constraints. They may surprise you and you could offer a bonus to the best ideas.

Keeping morale upbeat during the crisis

A big danger to your business may be the impact on the morale of both you and your employees. As the boss, you may experience a wide range of negative emotions, anxiety and uncertainty and maybe anger that your business has suffered this setback through no fault of your own, all of which is understandable.

Your employees may be worried about the security of their own positions and frustrated that their hard work may now seem wasted as well as all the anxiety and uncertainty we are all feeling at the moment.

To keep motivated during the crisis here is a simple guide:

1. Facing the facts

No one can stay optimistic all the time, the first thing to do is to come to a level of acceptance that this is a bad situation that will last a long time. This will help to accept the situation and deal with it, rather than simply relying on hope alone.

2. Be supportive

If your team is working remotely, acknowledge that this will be culture shock of being separated from each other. Encourage them to communicate with each other but to express concerns in private with you. Tackle any loneliness issues that may arise and feel your way towards a new way of working.

Think about any other issues that may be affecting your team at this time. Don’t assume you know what is bothering them, just ask them. After all, we are in this together.

3. Keep the faith

Once you have accepted the size of the challenge, you can start the process of reassuring yourself you will do whatever it takes to overcome it. Have confidence in the talents you have, they got you to where they are in the first place.

The journey will be bumpy, takes things one step at a time so you don’t become overwhelmed.

4. Picture succeeding

Remember at the beginning of your business journey when you would imagine what your business would be in 12 months’ time, how motivated that made you feel, being the master of your own destiny, providing for your family, and the accomplishments you would achieve. When your enthusiasm was through the roof.

We it is time to do that again. Picture yourself in a years’ time, looking back on how your business survived the coronavirus and telling your friends about it. The clearer this picture is in your mind, the clearer you will be able to see your way through the other side.

Conclusion

As small business owners there is one thing that we are more than anything else and that is resilient, we know how to fight to survive and we can do this. Its up to us to take charge and think outside the box, get creative, and do whatever it takes to keep going.

From us here at Admin Made Easy, Stay Safe, and don’t forget we are in this together so let’s help each other in whatever way we can however a big or small.