Small businesses play an essential role in keeping an economy healthy and active. They provide employment opportunities, introduce competition in local communities, and encourage innovation even at the base level. In fact, some would even argue that small businesses are the engine for economic growth.
However, due to the global pandemic forcing the world into a standstill with how devastating its impact has been, one of the hardest-hit sectors of our economy are the small businesses. With everyone advised to stay at home, social distancing rules having to be observed, and the vast world population still trying their best to embrace the new normal, small business owners have not been able to keep up with all the change.
Small Business Owners Are At Major Disadvantage
There are many things we can attribute to the closing of small businesses at a rapid pace. Still, it falls to the fact that they are at a significant disadvantage compared to larger, well-established global corporations. Bigger businesses have more incentive to keep going and are more well-off, plus we can’t forget that they have numerous investors backing them and are generally more liquid. Whereas, in small businesses, they are backed into a no-win situation with no other choice but to fold.
#1 Unprepared To Withstand Significant Economic Instability
Of course, it goes without saying that no one expected this pandemic, and no one was prepared for the repercussions that took place. However, small businesses and startups tend not to have a large enough budget to withstand economic instability. And, with the sheer magnitude of the coronavirus, it has displaced so much that no level of stimulus can fix the wrong it had already done.
#2 Product/Service Not Pandemic-proof
Companies that already operate online and depend on skills that can be done both in-house and at-home have it much easier, and while they still do experience the same problems, it’s not as bad. However, the story fairs different for small businesses whose products and services are not pandemic-proof, which means they can’t easily afford to transfer everything into an online business model.
What Can You Do Now?
Yes, we won’t deny that the situation appears dire, but that doesn’t mean there is nothing you can do to pick up your pieces and come out of this pandemic better and stronger. When the dust starts to settle, and everyone gets acquainted with the new normal, the need and demand for small businesses will also grow proportionately. So, in the meantime, all you can do for now is prepare.
Raise Capital and Invest
First up, you need to gather what capital you have left, raise as much as you can, and reinvest back into assets that will generate healthy cash flow to keep you going. We won’t disregard the possibility of this pandemic displacing even your personal needs, so it’s better to be safe than sorry.
Luckily, some ventures remain viable, and to give you an example, certain house-flipping and real estate investments have proven to be pandemic-proof, albeit much slower than usual. If you have a knack for selling, you might want to look into homes available for purchase.
Rethink Your Business Model
Secondly, with the newfound time on your hands, spend these precious moments hustling back to the planning period. There’s no time to waste, and you wouldn’t want to be late to the next wave of businesses capable of operating and adapting to the new normal. So, use your time efficiently and rethink your business model to make it more appropriate to surpass the current situation.
Reconsider your approach to small business and try introducing more modern methods of marketing and innovation to your products and services. See that you’re able to develop a relatively feasible business plan that you can act upon when the opportunity presents itself.
Verdict: Don’t Be Discouraged
In conclusion, we want to remind you that this pandemic does not signal the end of times, and your business being temporarily closed does not mean you’re a terrible entrepreneur. So, don’t be discouraged and take the initiative to prepare for what’s to come next.