How Small Businesses Can Survive the Coronavirus Pandemic

With millions of people across the country now unemployed as a result of the coronavirus pandemic, small businesses everywhere are feeling the strain. Consumers have no choice but to save every penny they can to afford the bare necessities. As if that weren't enough, the stay at home and social distancing regulations put in place by local and federal officials, make it nearly impossible for consumers to visit their favorite businesses and spend money as they once did.

These changes have forced many small businesses to close their doors temporarily while others are hanging on by a thread. While the $2 Trillion coronavirus stimulus package passed by US Congress last month was believed to be the financial lifeline that many small businesses needed to stay afloat, many organizations in need have not been able to reap the benefits.

Lots of small business owners have taken the proper steps to apply for financial aids provided within this stimulus package like the Paycheck Protection loans and Economic Injury Disaster Loans, many are still waiting to hear back on the status of their application as news reports that the funds are all but depleted.

Surviving Without Federal Aid

Though Congress is currently working on solutions to refund the stimulus package to help small businesses in need, small business owners are panicked as they try to figure out what to do in the meantime. With no idea as to when life will return to "normal", entrepreneurs are encouraged to start looking to strategies such as these discussed below to survive during the coronavirus pandemic:

Utilize Company Reserves

Just as financial experts advise families to have an account set aside for a rainy day, businesses should have the same. Now is the time to assess your company reserves to see what you have to work with. Hopefully, you've saved enough to sustain operations for several months to a year. If not, however, it would be advisable to prioritize your expenses and use your reserve money to cover those costs.

Eliminate Non-Essential Expenses

Review company expenses and begin crunching numbers. Anything that is categorized as non-essential should be eliminated from the budget. If your physical location has had to close temporarily, you might have to let go of some of your employees to cut employer expenses. Review and reduce the cost of any inventory or company supplies. While you may want to maintain your commercial property lease, you might need to eliminate or reduce utility costs, cleaning, or maintenance contracts until your location reopens.

Reduce Essential Expenses

There are some expenses you won't be able to get around. Take for instance shipping costs. You need to maintain a contract with your shipping carrier to ensure your customers get their products in a timely fashion. Be that as it may, you may want to consider working with a shipping consulting company as they can help you to negotiate the best contracts and ensure that you're not overpaying.

Boost Online Sales

For small businesses with brick and mortar locations that have been temporarily shut down (or those that aren't generating enough revenue), now would be an ideal time to focus your attention on increasing online sales. If you don't already have one, start by creating an online shop. Then, develop affordable marketing strategies to increase traffic to your eCommerce site including posting on social media and blogs, creating contests and promotional offers, and sending out emails to your existing customer base.

Think Outside the Box

Business types like barbershops, nail salons, and massage parlors are suffering immensely due to the coronavirus pandemic. Carrying out business requires customers to make in-store appointments. Not to mention, social distancing when providing such services is nearly impossible. Rather than allowing your business to go under, however, it's ideal to get creative.

For example, you could open an online store and sell products like nail polish, nail kits, hair care products, brushes, combs, head scarfs, lotions, creams, exfoliants, etc. You might also upload tutorials or create online courses for clients who might be interested in learning a few things they could try at home. People would certainly pay a few bucks to learn how to do their nails at home, complete a quick haircut, or learn a few massage therapy techniques to stay relaxed during the pandemic. These things keep your brand relevant until businesses are able to reopen.

It is without a doubt a very scary time for small businesses across the US. The coronavirus pandemic and associated changes to everyday life have made it extremely difficult to stay afloat. This is especially true for those who were unable to receive financial assistance from the federal government. Fortunately, there are things small business owners can do to remain in the game until things begin to go back to "normal".