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Top tips for business survival in coronavirus crisis

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The knock-on effects of COVID-19 are having an impact on consumer behavior, and small businesses must be innovative and find ways to stay competitive and ensure their survival.

Paul Henshall, CEO of ActionCOACH ANZ says “Certainly, these are extremely trying times, particularly because we are in uncharted territory. However, it is important not to panic. It is also crucial that you continue marketing and communicating with both your internal and external stakeholders.

“People still have needs and will continue to buy products and services. The way in which they access these products and services just might change.

“Those who market and sell better than their competition and make it more convenient for customers to get their hands on their goods, are the ones that will better weather this storm.”

Henshall suggests switching up the marketing messaging, evaluating any supply chains, and adjusting daily operations.

Business survival in coronavirus crisis

Communication is the first area that needs your attention in any “panic” situation, Henshall points out.  It is critical to communicate the franchise standpoint and any business changes to the team. 

Failure to communicate leads to fear, uncertainty, and doubt. 

Henshall advises company owners to be open, honest and transparent, and to focus on communicating fact-based and most relevant information.

“At the same time, be empathetic, engaging and educational,” he says.

Henshall tells business owners to take a step back and look objectively at their entire business to find the greatest point of weakness – the biggest threat to business continuity.

It could be sales, it could be technology, inventory, staffing. 

“With this pandemic or other supply chain issues, you might need to change the way you distribute, sell or deliver. Look carefully at where the missing links are,” suggests Henshall.

“Consider if you need to deliver the product or service in a different model. Don’t wait for the customer to find alternative sources. 

“You may have to source products from different suppliers to your prior sources because in some situations, the primary source for product or inventory might not be able to provide the quantity or timely delivery.  This may be an opportunity to make a change that was already needed.”

Henshall says small companies are naturally more agile because of their size. It’s time to employ that flexibility, and strengthen links with local customers.

Adding value is one of the best and easiest ways of ensuring that customers do not stray. Consider carefully what customers need and think strategically about how this can be delivered to them more seamlessly and at a fair price.

Focus on the little things such as optimising communication, levels of customer service and by making it easy for people to source and pay for products.

Henshall adds that small businesses may be able to leverage debt at a lower cost. “Refinancing debt at a lower cost could be of benefit. The decrease in cash flow that comes from slow payments (higher accounts receivable) might mean a greater use of borrowed capital. 

“Also, a disaster or pandemic or other type of ‘emergency’ as defined by local or national governments sometimes means the freeing up of cash to keep economies stable. Look for finance opportunities to smooth the way.”

Henshall reminds business owners to safeguard their own wellbeing.

“Make sure you are healthy physically, mentally, and financially.  This is critical as you are the driver of your bus.”