The pandemic affected hundreds of thousands of businesses across the country and forced many to close. These closures continued even up to a year after the health crisis started. And changes in consumer behaviors compelled many businesses to adjust their business models. They had to implement a lot of innovations so that they could stay afloat during the pandemic.
These businesses also had to reduce expenses and connect with their customers. Some businesses had to furlough some of their employees to reduce expenses. They had to focus on revenue-generating activities to remain profitable.
While the economy has improved, some businesses are still struggling. These businesses have to look for ways to survive the pandemic. Here are some things that entrepreneurs can do to keep their businesses afloat.
Embrace Innovation
One thing that entrepreneurs should do is embrace innovation. When the pandemic started, people were asked to stay home. This forced many consumers to shop online. Businesses with e-commerce stores connected with these consumers. On the other hand, businesses with no online presence had a lot of work as they had to start from scratch.
Entrepreneurs had to build a website, create social media accounts, and increase the online presence of their businesses. Entrepreneurs who adapted to the situation and invested in innovation were able to connect with their customers. On the other hand, those who resisted change and focused on their physical stores saw sales decrease. Some of them had to close their stores due to poor revenues.
Go Online
Going online is the best way for entrepreneurs to reach their market during the pandemic. Since people wanted to stay safe while shopping, they opted to shop online. Online retail sales in the US increased from 11 percent in 2019 to 14 percent in 2020.
Entrepreneurs who haven’t started an online store should consider starting one for their business. Aside from connecting with their customers, going online also expands their market since they can reach customers in other countries. This increases their revenue potential and reduces the risk of closure.
Going online also allows entrepreneurs to connect with potential suppliers who can provide them with items that they can sell in the US. Additionally, they can also connect with skilled workers who can help them increase their online presence and connect with markets in different parts of the world.
Diversify the Business
Diversifying their businesses allows an entrepreneur to have multiple income streams. With supply chain issues continuing to plague some industries, entrepreneurs can open businesses that source their products domestically. They can also consider offering digital products rather than physical ones.
Another option for entrepreneurs is getting a quick-service restaurant franchise. These franchises have a system in place, and their brand is already well-known. All the entrepreneur has to do is run the business. Multiple sources of income can increase the survivability of a business, especially if it does not focus on a single industry.
Adjust the Business Model
Business models that were adaptive and resilient survived the initial shock of the pandemic. Even as the crisis affected businesses in different industries, resilient businesses stayed afloat and continued to earn revenue.
To become resilient, a business should be agile and can adapt to any situation. Agile organizations focus on their customers and create value for them. It should also make sure everyone in the organization is focused on the same goal. It is also a network of people who are empowered. They should have the expertise in their respective fields and are accountable for their actions.
These teams also learn and decide fast. Acting quickly is necessary for a business to keep its head above water. So, organizations must make decisions fast. The people in the organization should also be passionate about their work. This passion allows them to find ways to keep the revenue streams flowing into the business. Lastly, an agile organization uses innovative technology to get ahead of its competition.
Work on Logistics
The pandemic affected the supply chain that saw businesses running low on stock for some products they offered in the market. While e-commerce made it easy for consumers to look for products online, businesses needed to transport these products to their customers. If the product is in stock, the business can ship it.
But if the stocks are low or have run out, customers may look for the product somewhere else. Due to this, businesses should make sure they solve the issue of logistics. They can have multiple sources of their products and not rely on a single source. This reduces the chance of not having the product in stock.
Entrepreneurs should think of different ways to keep their businesses afloat in the middle of a pandemic.