Covid-19 shook the whole world in just a few months. Citizens came across some widely used new words like quarantine, N95 masks, social distancing, etc. Not only that, but we have also witnessed small business closures, food and product shortages, distribution delays, mobile hospitals, tent-based triage stations, and round-the-clock efforts to reduce mortality rates.
As the pandemic continues, businesses are getting affected by it widely. However, it is not as difficult for essential businesses as it is for non-essential business ones. Even during the lockdown, supplying food, delivery, medicines, healthcare, shelter, information, transportation, and insurance services functioned. These are necessities for people to survive.
But non-essential business witnessed a huge downfall in terms of capital. To achieve their targets and get the map on track, some enterprises changed their business strategies during the pandemic, while some choose to stick to the old one.
What is a non-essential business?
Non-essential businesses are generally recreational. They don't provide people with groceries, medical care, financial support, medicine, or utilities. Instead, these usually opt for leisure.
Clothing, shoes, bars, restaurants, and accessory retailers are all considered nonessential. In addition, all venues or services without which people can live come under the non-essential business, including theatres, movies, stage, bowling alleys, casinos and racetracks, shopping malls, museums and art galleries, sports, and concerts venues. As the government imposed the lockdown, all businesses closed for a long duration, but they were most affected by it.
This pandemic has caused widespread chaos and changed the business landscape for everyone. As we know, Setting business strategies in covid for the long run about how to recession-proof business is going typical with its growth and success as its core goal. Unfortunately, we can not predict the future, so it's always based on assumptions. And this pandemic turns out as a big hurdle to this strategy.
Read, business strategy during a pandemic: what's changed, what hasn't?
Business Strategic Planning During The Pandemic: What’s Changed, What Hasn’t?
Strategic planning is never easy, and it has gotten hugely harder with the Covid-19 pandemic. Baseline forecasts of revenue and costs are challenging, and who knows whether a second wave or a vaccine will change everything in short order? Read More.
Recession and Pandemic
Even imposing a lockdown for such a long time, this pandemic doesn't seem to end, and we already can see its effect on the economy globally. A significant decline in economic activity is visible, and this is what we call a recession period. In addition, the business recession-proof side hustle is categorized as a period of negative economic growth.
The primary effect of a recession is that you could make less money. This has many knock-on effects as you will need to make changes to stimulate growth and profit. The recession also means that you could not have easy access to credit. Otherwise known as a credit crunch, the pandemic taught us to be ready with business recession planning, as you can need it anytime.
It is challenging to plan for such things in advance, but now, we realized the importance of a recession strategy. To be prepared for something before it hits you is one of the smartest moves, and it just becomes more important in the business world. With the help of market research, marketers can identify a company's strengths, weaknesses, opportunities, and threats, consolidate its offering, become increasingly competitive, and develop proactive marketing strategies that will enable it to survive and prosper in times of adversity.
How to recession-proof your business?
The Coronavirus pandemic has turned the global economy and stock markets upside down. If we’re not already in a recession, likely, we will soon be. Most Wall Street business experts say it could be worse than the great recession. When talking about how to recession-proof your business, the unemployment rate is another central area to consider. In February, the U.S. Bureau of Labor Statistics noted the unemployment rate was at 3.5% or roughly 5.8 million people.
With all these warnings and graphs, we can say that a recession is on the close boundary. Moreover, we know that an economic recession can wreak havoc on business leaders, companies, employees, vendors, and customers.
Below mentioned are some of the ways to make your non-essential business recession-proof:
1. Make necessary adjustments to position your business for success.
As an owner of a business, you choose to make decisions to avoid pitfalls and leverage opportunities that are beneficial for your business. So focus on those changes and grab that opportunity for business growth. Also, keep in mind that it is a team effort, so make your team aware of your decision. Also, we have come across a new way of working from home and emerging vital techniques to retain employees, it is difficult to work with complete focus when you are with your family. So be innovative and keep your team motivated to execute your plans successfully.
2. Experiment with temporary pivots
This year has been tough on everyone, and you might need to make a temporary shift in your way of marketing. In this situation, when people are asked to avoid going out and practice social distancing, you can also do a little experiment with your business. For example, Soon after lockdown restrictions were imposed in the area due to the pandemic, the dine-in/take-out restaurant Tel Aviv-based American restaurant, Bodega branched out to offer meal kits for delivery, which tremendously helped the business weather the storm, despite reduced foot traffic.
3. Consider creative ways to build new streams of income.
Something is better than nothing, so consider offering packages with a wide range of price points if possible to at least offer a little something for everyone. Create multiple revenue systems rather than expecting high hopes from one. So be it, freelancers, creators, thought leaders, or agents, have the benefit of instantly implementing any creative new idea that comes to mind for new or additional revenue.
4. Place great care into customer retention.
Customer retention refers to the ability of a company or product to retain its customers over some specified period. I'm a big believer that a happy customer just multiplies your revenue. So, when nothing is going right focus on your existing clients and customers. Instead of expanding your customers, focus on ensuring customer loyalty simple steps to enhance them by exploring the quality of service, and on customer retention. If you can provide great quality during these difficult times, it will be strongly valued, and word-of-mouth recommendations would be more impactful.
5. Practice great ethics while cutting costs
Cost-cutting is the reduction of costs. Cost reduction is the process used by companies to reduce their costs and increase their profits. Companies, when they get hit badly choose to cut ties with agencies and service providers. Do this keeping ethics in mind and so that you can tie up with them when everything is under control.
6. Go digital
With the digitization in process, transform your business from physical to digital will open new doors for you. It is one of the few good things that come out of this pandemic. So many events, meetings, deals have been done using digital platforms now. This will help you grow your business even when you are not physically present there.
7. Enhance core competencies
Core competency is a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace and holds significant importance for entrepreneurs and small-business owners. Your core competency allows you to stand out in a crowded market from all your nearest competitors. In addition, once you spot your competencies, you can leverage them to win greater brand awareness and increase profits.
Also, read cost-effective marketing strategies to use in a recession:
7 Cost-Effective Marketing Strategies To Use in a Recession
As a business owner, you know that managing everything across your company can be challenging, even in a healthy economy. Still, you will be tested even more as tough economic times hit non-essential business. Read More.
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Contributor: Jyotshana Rani
Jyotshana is very keen to express her views on new topics and wants readers to remember her through her writing. She is passionate about reading and believes that words wield the power of changing the scenario and she uses them to encourage people to the best of her knowledge