Small Business S.U.R.V.I.V.A.L. Strategies

April 29, 2020

As a small business owner, you face no small list of challenges to keeping your enterprise afloat even during “normal” times. The Covid-19 pandemic may seem like an out-of-the-blue, unforeseen event, but it likely will not be the last unpleasant surprise you encounter. The pandemic also provides an opportunity to improve the ability for your business to survive in good times or bad. Taking a bit of a twist on the U.S. Army’s “SURVIVAL” acronym used to train soldiers for successfully navigating practically any unexpected situation, here are some actions you can take to help your business survive pandemics and more:

S – Size up your business.

While it might be tempting to react to news headlines or copy what your competitors are doing, neither of those actions take your business into account. Instead, take some time to evaluate your specific situation before deciding what to do next to help your business survive. For example:

Which critical operations must continue to generate revenue?

Scrutinize how fast your business might be burning through cash reserves. What can you stop doing, permanently or temporarily, to conserve cash?
Draft a three-month financial contingency plan to meet critical expense needs (e.g., rent, staffing, supplies, insurance, etc.).
Update (or create) your business continuity plan. Again, coronavirus won’t be the last unexpected event to disrupt your business. Use this time to size up risks, evaluate options, and explore just how flexible your business could be if needed. Inc.com offers a helpful guide called, “How to Build a Business Continuity Plan.”

U – Upskill your staff and yourself.

Use this otherwise unproductive business slowdown as an opportunity to cross-train your staff so they can operate with more flexibility, particularly if some of them become ill and can’t work. Plenty of free or inexpensive online courses are available on topics such as marketing, sales, accounting, and more to help your business become more competitive and adaptable.

R – Reach out to your clients.

Stay connected with your customers. Although it might be difficult for them to buy from you right now, avoid falling victim to being out-of-sight-out-of-mind. Consider all the different ways you could communicate with them during the quarantine:

Email to let them know how you are adapting your business to the situation.
Update your website and educate your customers on how to do business with you during the emergency.
Ask for ideas or send out surveys. Your customers may have some excellent thoughts on how to meet their needs right now.

Stay active on social media:

Post Instagram stories to interact and connect with your customers (show off upcoming products, discuss plans for the coming months, or just chat about how you are coping during these crazy times).
Start a blog and chronicle your life or business during the pandemic; share your personal side as well.
Use Facebook and other social media to help expand your customer base and expand your market outside of your geographic area.

V – Verify eligibility for federal and local assistance.

You may be surprised to discover how much assistance is out there for small businesses. The Small Business Administration (SBA) offers a variety of coronavirus relief options, and the U.S. Chamber of Commerce offers a Coronavirus Small Business Resources Guide. Your local municipality may also have programs available to help keep your business operating.

I – Improvise.

What could you be doing differently to generate cash, keep your staff engaged, stay connected to your customers, etc.? What about implementing new technology or using existing technology in a different way? For example, could you do more online? Real estate agents are now offering “virtual walkthroughs” for prospective home buyers. Similarly, shop owners are expanding their online presence and selling more online. Cafés and specialty food shops are offering online cooking courses.

V – Value your time and effort.

Consider how much time and effort (as well as money) you are putting into your business. This can be a difficult question to ask yourself, but is the business still worth doing in the current environment? Consider how much money your business is reasonably able to generate – or how much it is costing you – compared with other pursuits that might earn more money or be less stressful. Whether that means freelancing, taking on a “regular” job, or working side gigs to make ends meet, you might be better off by shuttering your business for now. You could always reevaluate and remake the business when times are better.

A – Arrange for alternatives.

Adapting to current business conditions means looking for alternate ways to continue doing business. If you are unable to service or sell to your usual customers, who else could benefit from your business? For example, small distilleries shifted from making booze to producing hand sanitizer. Restaurants and their suppliers have retooled to sell and deliver prepackaged meals to individual customers.

Perhaps offering your products or services remotely is easier to do than you thought. Creating online classes on a do-it-yourself version of your services could also be a way to make ends meet for now. Selling ahead by encouraging customers to pre-purchase gift cards is another way some businesses are generating cash to keep their doors open until the pandemic subsides. The key is to be creative and stay open-minded.

L – Learn from (or lean on) your competition.

Finally, consider what your competitors are doing. While you might not want to blindly copy their strategies, your direct and indirect competition might also have a good idea or two that works well for you. Study those that seem to be doing okay. You might also consider temporarily partnering with other complementary or competing businesses to help you both stay afloat. For example, one business might be exceptionally good at production and another has excellent local delivery resources. Alone, they suffer, but working together keeps both going. In other instances, two different businesses may be able to combine their products as an attractive package deal for customers. By working together, they both stay in operation and potentially expand their customer bases.

Sources:

Bhatti, S. (2020). How Your Small Business Can Survive The COVID-19 Pandemic. Entrepreneur. Available at: https://www.entrepreneur.com/article/348365

Bos, P. (n.d.). How to Build a Business Continuity Plan. Inc.com. Available at: https://www.inc.com/guides/2010/05/business-continuity-plan.html

Department of the Army. (2002). FM 3-05.70 SURVIVAL. Available at: https://fas.org/irp/doddir/army/fm3-05-70.pdf

Inc.com (2020). Inc.’s Essential Business Survival Guide for the Covid-19 Crisis. Available at: https://www.inc.com/business-continuity-cash-flow-coronavirus-crisis.html

Slotkin, A. (2020). 7 Tips to Keep Your Business Afloat During COVID-19. Chief Executive. Available at: https://chiefexecutive.net/7-tips-to-keep-your-business-afloat-during-covid-19/

Tennen-Zapier, D. (2020). 5 Creative Ways Small Businesses Are Succeeding During the COVID-19 Quarantine. Fast Company. Available at: https://www.fastcompany.com/90489203/5-creative-ways-small-businesses-are-succeeding-during-the-covid-19-quarantine

Wasserman. E. (n.d.). How to Write the Financial Section of a Business Plan. Inc.com. Available at: https://www.inc.com/guides/business-plan-financial-section.html