How will small businesses survive COVID-19?

How will small businesses survive COVID-19?

For most of us that own small businesses, we have reached unchartered waters with seemingly no direct route out of the storm. There have been some instances in modern history that decimated economies and communities as a whole. The Great Depression and World War II spring to mind. We doubt, however, that those amongst us who have lived through that era are currently running around in the office or shop trying to figure out how to pay rent at the end of the month. 

For most of us, the dot-com bubble and crash of 2008 rings closer to home. Those, however, decimated only parts of the economy and only in some parts of the world. COVID-19 has literally shut down all sectors of all economies and decimated industries, jobs and incomes of millions around the globe. Though corporate industries have taken a knock, they have largely been able to weather the storm much better than the rest of us. The fact that we are all in the same storm, but not all in the same boat has truly manifested itself. 

The chippie on the corner, the freelance designer working from home or the florist on your street is where it hit the hardest. Staff are needing to be laid off or put on short time as small business owners simply don't have the capital and resources to sustain expenditure without incoming revenue. It’s not about reshuffling the balance sheet to sustain optimum dividend per share payout to shareholders, but rather needing to pay the rent and the telephone bill. It’s not about downgrading your revenue forecast for the next quarter, but rather needing to pay council taxes and your business insurance. Sure, the government has provided some relief in some shape or form, but that is hardly a substitute for a client walking through the door or placing an order online. 

The hard, uncomfortable truth is that we have to adapt or die. For some, this will be easier said than done. We say this with full regard to the multitude of challenges that we as small business owners will be faced with. It will not be business as usual, and there’s no telling when we will return to any degree of normality that we knew before COVID-19 kicked in our doors. What used to be a cut-throat competitive market, will only increase in its veracity. Consumers will have less disposable income to spend on non-necessities. Companies will have less to spend on non-necessities as they look to curb the losses incurred over the past few months. Businesses will cut prices for their offerings as they look to recoup income lost, which ironically, is the opposite of what one should do if you’re looking to make up lost ground. Stuck between a rock and a hard place takes on a whole new meaning!

Inevitably during troubling times, marketing and its related activities are the first thing businesses cut, as generally, they are deemed as non-essential or a luxury. It is regarded as the “I can make do without taking my offer to the client.” This, we put it to you, is a common misperception. In a buyer's market, taking your product or service to the consumer is of imperative importance. They will be flooded with the best deals, and the lowest prices, thrown in with a “we’ll do your dishes at home twice a month!” There is no incentive for the customer to shop around for the best product (yours), as there will be plenty of good products around for a dime a dozen. And in a downturned economy, good will suffice just fine for the majority. 

We won’t be stuck in this situation forever, and the lights are appearing at the end of the tunnel. Across Europe, many countries have started to relax their levels of lockdown and trade has started to resume, albeit at a snail's pace. As an agency with a specialisation in small & medium businesses, MOYOA Solutions is ideally placed to provide bang for buck solutions that can address the current day challenges your business is facing, without further exacerbating the shortfall in revenue that you have to make up. Get in touch with one of our team members for a complimentary, no-obligation consultation to discuss how we can get you back to the top of your game. After all, that’s where you belong!

If you’d like to stay up to date with the latest news from our blog, subscribe at the bottom of this page and we’ll keep you in the loop whenever we post new content. From all of us here to all of you out there, happy selling!

Till next time,

Team MOYOA Solutions