Small businesses are the lifeblood of any society.
One day we are living in a goldilocks economy with the stock market heading towards its 12-consecutive year of growth and the economy experiencing record low unemployment, and a few weeks later small businesses are gasping for survival after being hit with Covid-19.
We are all trying to figure out what type of business we have. Is our business considered essential for the economy and the survival of society, or is it forced to close its doors and services? Many small business owners in Montreal are asking these questions.
Small Business Guide to surviving COVID-19
Small businesses have to show leadership and empathy
You should not stop selling and promoting your business, we need businesses to survive and we also need a resemblance of normality.
On the other hand, don’t be opportunistic, do use scarcity or fear tactics, don’t be pushy. You and your business are there to help out, to show leadership and empathy, not to take advantage of the situation.
For clients
This is the time to support your local business. Stay safe, stay home, but if you have an opportunity, show some support to the local coffee shop, your local supermarket, etc., don’t hesitate twice, these small businesses are what give character and life to your neighborhoods.
The most successful small businesses have gone online
Maybe your business depended on foot traffic and a website was an afterthought. Well, things have changed drastically.
If you don’t have a website, there is no better time than now. I have a new website business, and I can make a website for you for free during these difficult times. This is my way to show support to those who are making the transition towards the digital world.
Take advantage of Facebook pages, Instagram, and LinkedIn. This is a time when clients are looking for information about your business and the way to keep them informed is through your online presence.
Create a Google My Business page
Clients shopping habits have been disrupted, now clients will be adding in their search “near me, pick up, shipping, drop-off.” If your business is in Google maps, local clients will not struggle to find you.
Don’t get involved in price gouging
This guy bought 17,700 bottles of hand sanitizer and tried to sell it for five-time its price through Amazon and eBay. After being found out by the local press and later on by the New York Times, Amazon and eBay closed his account and he was forced to stop his business.
Price gouging is the fastest way to ruin your reputation. Clients will hate you and may never buy from you again.
Price gouging is illegal in many states and provinces and a few governments have set up hotlines where you can call and report illegal activity.
Pivot as fast as you can
Many restaurants have sweetened the deal for pick up food. Many retail shops have added delivery. Many organizations have switched their services online. For example, I am a member of the McGill Toastmasters Club, a club devoted to the practice of public speaking. The club has pivoted and now we do all our meetings online.
I used to have a photography business and now I have a website development business. There are many yoga studios and fitness studios that now teach their classes online.
If you have been looking for an opportunity to change direction in your business, this is the best time ever.
Accept whatever government help is available to you
Both, the US and Canada are offering help to small businesses. For example, the government of Canada is offering business loans, business rent assistance, salary assistance, and much more. Check with your local government to see what kind of help you are eligible for.
Cut off expenses and renegotiate contracts
It’s all about survival. Go through your regular expenses and be ruthless. Find where you can cut and cut it or negotiate it.
I figured I would not be using my car at all, so I canceled my car insurance. Also, I negotiated my telephone plan. Being that I am at home all the time, I didn’t need at all my data plan. I cut my data plan and now I only have the phone service.
Consider a salary cut for you and your employees
We all have thought decisions to make. Maybe you are contemplating laying off some employees or most of them. Meet with them and ask them if they would be willing to take a salary decrease instead. Don’t be shy. These are drastic times, even Prime Minister Jacinda Ardern and her ministers took a 20% salary cut in solidarity with those who are struggling economically.
Message from Shawn Johal, Business Growth Coach
How small businesses are dealing with COVID-19
The current crisis has had a major impact on millions of small businesses around the world. While most have suffered intensely negative consequences, others have thrived by either being in the “right” industry or by pivoting to a new market segment.
Small businesses devastated
As a business coach, I have seen 3 types of small businesses during the crisis. The first are businesses that have been devastated by COVID-19 and have been simply unable to react. They have waited on government support, chosen not to immediately address their cost structure, and have been slow at communicating with their teams. Understandably, these businesses are most at risk.
Businesses that have made some changes
The second type are businesses that have made some changes, both big and small, and have worked to maintain customer relationships. They are talking with their employees and hoping for a better day to come soon. Most will survive – but at a very high cost.
Businesses that are thriving
The final type of small business, those that have downright thrived, whether by simply being in the “right industry” at the” right time” or by creating their own luck, are on the fast-path to success. These businesses have put the pedal to the metal: they have crafted a new and adapted vision and have been cascading it throughout every level of their companies with incredible consistency. Every employee has engaged with the new strategies, has felt supported by strong leadership, and has maintained the same levels of communication and commitment (or more). They are already seeing the fruits of their labor and will emerge from the crisis as market leaders.
Conclusion
Covid-19 had drastically changed our lives; however, we small business owners, are very resourceful and resilient and we have survived many crises before. I assure you that we will survive this one as well. Let’s stay strong, let’s help each other and let’s thrive once this crisis is over.
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