The bad news about the COVID 19 pandemic is that nobody knows when it’s likely to end.
The challenges faced by small businesses during CO Vid outbreaks are significant and require attention. All business owners can agree that the present economic climate is difficult for all companies. Even more difficult for small businesses because of the uncertain future outlook. A healthy balance must be maintained between past successes and failures. These challenges faced by small companies can be dealt with successfully and adequately if proper attention is paid.
The COOVID 19 outbreak has drastically changed people’s lives almost all over the world. Some of the changes involved include maintaining a social distance, strict rules on mass gatherings and social places, masks wearing, and washing hands as they keep high hygienic standards—other guidelines to keep safe involved working from home with most institutions and business centers closing up temporarily. In the process, small businesses were the most affected. This article discusses some of the struggles small businesses underwent due to COVID 19.
Shortages in cash flow
The bad news about the COVID 19 pandemic is that nobody knows when it’s likely to end. Earlier, many business owners and other people hoped and thought it won’t spread throughout the globe. This meant it’d prove a short term impact. While many business people are wise enough to save for unforeseen happenings, no one anticipated the dire situation would stay for months without coming to an end.
A report from a survey done in March and early April 2020 suggested that out of 5,800 participants, only 75% had cash sufficient to serve their businesses for about two months or less. How can you deal with cash flow issues? A small business loan may come in handy. Learn more about SMEs Loans from A1 Credit to make appropriate decisions.
Reduced revenue
Small businesses also faced a drop in revenue. For instance, café operators had to dramatically reduce the diners’ numbers to observe social distancing rules. A May 2020 survey on small businesses showed a general revenue reduction in 62% of them. Those demonstrating increases were only 12%. Around 47% said they made losses amounting between 10 and 30%, whereas some surpassed 35%. Others said they underwent complete losses in revenue.
Supply chain challenges blocking operations.
Is it right to say that small business challenges linked to the COVID 19 pandemic influenced all industries? Even some sectors got hit harder than others. Think about traveling brands. They got confused, not knowing how to convince people to return to their businesses. Take an example of Ireland that’s well-known for its pub culture.
Reopening for publicans is an issue unless only substantial drinks and meals get served. What countries heavily rely on goods supply from other states? You notice that most countries depend on building supply imports from China. It led to construction companies being among the first to suffer supply chain difficulties. If you were lucky to make a successful materials order, be sure it’d arrive later than expected.
Looming second wave concerns
Various discussions on the pandemic revolve around what might happen if a second wave occurs and when it might come. Results from a poll in July 2020 by small business owners suggested that 65% got worried about remaining non operational for another unknown period caused by a second wave. Can you imagine spending a lot of money on reinforcing safety reopening orders? Still, the government, unfortunately, deems your business station unsafe. That means you’d have to close down and undergo a loss. It’s what happened to numerous bar owners in the US.
Customers unsure about opened business
Customers aren’t aware of whether the business stores they earlier frequented before COVID 19 have reopened or not. It’s also difficult for them to keep track. About 39% of small business owners didn’t think the profits made would be worth reopening. Nevertheless, most respondents had plans for using different strategies in the first reopening month to create awareness to customers. They mostly talked of using the email as others said promotions and sales would work better for their businesses. Consumers’ long term changes in coping with unending anxiety.
People are still concerned about having the virus spread to their families and loved ones. Most households have a mortgage and rent-paying struggles together with losing jobs. With all these, individuals decided to shift their spending patterns and preferences. For example, 52% of the research participants mentioned changing their shopping ways, with 42% choosing to buy groceries online and 46% deciding to eat out, only in restaurants observing the rules given by public health sectors.
Stress and worry increase
Small business owners occasionally go through stress and worry. But, COVID 19 stressing factors and uncertainties took it to a new level. How would you deal with the fact that one of your employees is coronavirus positive? Or maybe, how would you treat customers failing to wear masks to your store? These, among many other instances, increased stress and worry to owners wishing to make things work for their businesses to prosper despite the pandemic.
If you want to read helpful books about small businesses, check this website. These books provide the details of small businesses’ challenges during this current economic slowdown and the measures needed to survive them. It will provide a template for the type of planning you need to do if your business is ever in this situation. You can use this as a road map to help you decide what actions you will take to survive these financial times. They’re also useful for management issues, competition, financial problems, government assistance, technology issues, globalization, marketing issues, sales force reduction, business finance, and debt.
This guidebook’s primary emphasis is to outline the different types of obstacles faced by small businesses throughout the US. Each chapter contains a summary of the problem addressed and the steps needed to overcome it. It then goes into the possible solutions that have been suggested and what effect these solutions could have on your business’s overall health and profitability.
The bottom line
As a small business owner, please understand that the pandemic is not the end of your business’ productivity. Various solutions can be used to deal with every challenge the way it comes. Remember, there’s a brighter future ahead; stay strong and focused.
Source: African Exponent