The pandemic has changed a lot of things in the United States. It has affected how we work, how we do schooling, how we shop, and much more. These tips for business owners will show you how to make the most of the situation for your business.
With a little extra effort and revisiting your business model your business can survive this pandemic and possibly even flourish during this time. Tips for business owners to help them navigate the new normal can help you to stay in business.
Tips for Business Owners to Cut Costs
It is time to tighten the belt and cut some fat from your budget. This pandemic has taken a financial toll on many businesses. If you are one of those businesses that are feeling the pinch, you may have to make some changes to stay afloat. Some of the solutions may be extreme but keep in mind they may also be temporary.
For example, you can save money if you sell some of your equipment and rent it instead. Sounds counterintuitive? It is not. Let’s say you have a warehouse full of forklifts that roughly are worth $50,000 collectively. If you sell them off and find forklifts for rent that you can rent for under $2,000 a month, they will cost you $24,000 for the year. That means you will have roughly $26,000 that you can put toward other needs.
While that is an extreme solution that you could use when your back is to the wall, there are other ways you can cut the fat from your budget right now without having to sell off equipment:
- Audit your vendor invoices. Are you overpaying your vendors and suppliers out of loyalty? Many businesses especially small businesses do. Consider switching vendors.
- Ask vendors in your supply chain for a discount. Many times businesses are missing out on discounts from their vendors simply because they do not ask for them. Be honest with your suppliers and ask how they can help you to cut costs. They may or may not agree. If they cannot do better on the pricing, find a vendor or supplier that can.
- Consider cutting back on employee benefits. Employee perks can start to rack up. It is far better to cut back on perks than it is to have to lay people off.
Some of the ways to cut the fat are easier than others, but there is always a way to reduce costs. If you need new vans for deliveries, consider repairable salvage vans for sale. Yes, they may take a little work to get them on the road, but the fact is you can easily save thousands and thousands of dollars.
Cutting the fat is not the only tip for business owners when it comes to keeping more money in the budget. Frugal spending is another way. Do some cost comparison to ensure that all of the services and products your business spends money on are the most affordable option. Whether you need a company for airport transportation services or a steady supply of ink for the printers, you have the freedom to shop around and find the best deal.
Less inventory sitting in the warehouse means less warehouse space is needed. It also means you can cut back on waste, and the manpower that is needed to manage that inventory. No one likes to have to lay people off but if it means business survival it may have to be considered.
A leaner approach can mean tremendous savings across the board. Even if you adopt a leaner approach for a few months to build up those reserves it can help.
Tips for Business Owners to Start Multiple Streams of Income
Some of the best tips for business owners you will read are focused on divesting some of your resources from your main business model and creating separate streams of income. For example, if you are in the trade printing industry, how hard would be to open up directly to consumers for picture printing?
A tree care company can easily translate into a landscaping service. Many businesses already have the capabilities in place to add other services to their menu, and by doing so, reach a wider audience of consumers.
Let’s say you own a tree removal service company and you are considering expansion into a landscaping company. Investing in a few pieces of additional equipment may be a great investment that will draw in an entirely new audience looking for landscaping services.
You would not have to buy brand new equipment, you could buy used equipment to get started. Of course, it does not have to be a full-on landscaping company. Tree service companies could invest in bark blowers and offer mulching services. That is right in line with what you are already doing and you would likely have access to all the bark you need to create the mulch.
Sometimes you have to think outside the box. Let’s say you are a manufacturer of children’s clothes. Is it really a reach to consider manufacturing masks as well? By expanding your services or your inventory offerings to meet the needs of consumers during the pandemic, you can actually be one of the businesses that do well because of the pandemic and not in spite of it.
Most of the time if you are in one industry, there is another industry that is closely related that you can add to your business. Think outside the box to build other streams of revenue. Let’s say you are a restaurant owner that is well-known for the delicious lava cake they serve. Consider selling the cake, and other products that you produce online. Post recipes on social media to show how good your products look. Letting out a few secrets about your recipes can result in a lot of orders for that lava cake.
What if you offer a service, how can you create additional streams of income? Let’s say you are a personal injury attorney who is just starting out and you really feel the pinch of courts that are doing minimal business. Start an online question service. People will pay for advice. Meet new clients virtually. Become the lawyer online that provides in-depth information to help people navigate the legal system. You already have the knowledge and research abilities, you just have to go virtual.
Tips for Business Owners on Marketing During the Pandemic
Before the pandemic online marketing as a must. About 93% of all online experiences begin by using a search engine. About 89% of all consumers search for products and services online. About 90% of consumers never go beyond the first page of results they get back from a search engine. You put all three of these facts together and it really drives home the importance of online marketing.
During the pandemic, more people than ever are on shopping online, looking for services online, and making buying decisions online. This means that every small business should have an online marketing strategy. Whether it is marketing strategies for orthodontists or for restaurants, the strategies need to customized for that specific business to get the attention of search engines.
Here are tips for business owners for special considerations when it comes to marketing for their business during the pandemic:
- Let consumers know what you are doing to keep the virus from spreading. If you are a brick and mortar location it is important that consumers are made aware of the steps you are taking to keep them safe when they are in your shop. For example, if you are a restaurant or café, list the policies that you have in place for social distancing, employee mask-wearing, and other steps you are taking to do your part.
- Keep that social media flowing. Use social media to let people know you are open. Keep the posts coming to remind people about your business and your brand.
- Become a hub of industry news. Share content about your industry during the pandemic.
Marketing during the pandemic should not be slowed this is the time to really push ahead. Show people that you are still very much up and running.
Tips for Business Owners Who Supply Products
If your business did not establish an online presence before it is time to hop on that train. While consumers may be afraid to walk into a store, you can bet they are shopping like crazy online. You may have to tweak your business model a bit to convert to online sales but it is an easy process that millions of business owners have already done.
Regardless of the pandemic you need to establish that online presence. You are missing out on a lot of sales. People like convenience and online ordering is convenient. You may have to connect with a third party for order fulfilment down the road but for the here and now, you should be able to manage that transition on your own.
A professional marketing company that offers a turn-key approach can manage web development, marketing, and more to build an online presence for your business. It is something you should have done a long time ago anyway.
Tips for Business Owners Who Provide a Service
Service providers across a wide range of industries have suffered because of the pandemic. Luckily, most services can be provided virtually. If you are a bail bond company owner, do you really need to meet with people in person?
One of the best tips for business owners who provide a service is to move it all online. Whether you are a therapist, attorney, or provide a bail bond service, providing virtual services can save your business. There is a wide range of tools that can help you “meet” with clients, get documents signed, collect payments, and more.
Not being able to meet in person does not mean not being able to meet. It also does not mean not being able to provide your service. At the end of the day, when the pandemic finally is under control, you will still have options for clients that will allow them to meet with you virtually.
Many experts believe that even when the pandemic is under control many businesses will still continue to use remote workers, rely on technology more and brick and mortar structures a lot less because it all comes down to savings. The same experts predict that consumers will continue to use services like virtual meetings, ordering online, and securing services without ever having to walk into an office.
Tips for business owners who are tired of paying for high overheads are always focused on using more online tools and fewer in-person tools. It may have taken a pandemic for all of us to fully use the power of the virtual, and there may be no turning back.
Tips for business owners who provide a service and want to move to a more virtual model include:
- Don’t skimp when it comes to investing in technology. State of the art technology is available that provides the height of security and function. You do not want to cut corners when it comes to technology for the virtual arm of your business.
- Go pro for your setup. Hire someone who knows what they are doing to set you up.
- Make the process simple for the user. Making the process easy for your clients will ensure that clients from all walks of life can manage the process without getting frustrated and overwhelmed.
Virtual is not only the way to go during the pandemic but it can become a very lucrative arm of your practice after the pandemic as well. If you take one thing away from this terrible time it should be that you have to be flexible in providing your services. No one could have planned for the pandemic, but now we all know that this can and likely will happen again. Getting in on the cutting edge of the new normal now can ensure that your service business will sustain through all types of future problems.
Tips for Business Owners in Dire Straits
The fact for some businesses is that they are drowning. Before you shutter your business, consider contacting a bankruptcy lawyer to learn about how the bankruptcy laws can help you to reorganize your business finances.
The pandemic will end. If you can just hang on for a few more months, there are brighter days right over the horizon. Following these tips for business owners can help you tread water while we all wait for those brighter days to come.