How can Businesses Survive through this Difficult Time?

 

Photo by Daniil Kuželev on Unsplash 

By Henry Wang, Messy Details Contributor

Over the past few months, millions of people have lost their jobs and many businesses were forced into closure. The economy has taken a huge blow and it will take many years before it returns to normal. A worldwide disaster that you’ll probably only see once in your lifetime is currently unfolding in the shape of the COVID-19 pandemic.

Business owners all over the world are feeling the danger COVID-19 has on their businesses as they are forced to change their current operation to adapt to the situation or to withstand the closure of their business for months in the unforeseeable future with the possibility of permanent closure. To survive through the current pandemic, it’s time that business owners start seeking new practices and create new opportunities for their businesses even during this dreadful time. 

How COVID-19 Has Changed Businesses

COVID-19 has changed the entire business world in a matter of months. People were no longer going to their offices and spending the whole day working in the office, instead most people are working at home. Meetings are still being held, but it's no longer in a meeting room. Instead it's through Zoom meetings online. The work environment has changed as it is no longer surrounded by co-workers and desks stacked with paper but instead is surrounded by your noisy kids and the smell of home-cooked meals. 

As people continue to work remotely, the opinions of many have changed about what it means to work. Many people are realizing that long hours of office work and sweaty commutes aren’t as essential as people thought they were. Many are finding that working at home is a lot more convenient and 92% of workers believe they’re well equipped to work at home. In the future where COVID-19 is no longer a threat anymore, chances are, more people will be working at home compared to before COVID-19. 

Workers are not the only ones that have drastically changed during COVID-19 as consumers have also had a change in their behavior and buying patterns. During a time where fewer people are going outside, more people are spending time online and purchasing goods from online services. In fact, in recent reports, it is believed that Ecommerce purchases are expected to increase by 160%. 

In light of these new consumer behaviors, new types of services are being offered in businesses. For example, retailers are starting to provide “contactless” delivery and curbside pick-up services for consumers. 

Unsure of how long the COVID-19 pandemic will last, businesses are still continuously being affected by COVID-19 and facing new challenges that they’ve never faced before. 

Who is thriving, Who is failing? 

Throughout the COVID-19 pandemic, many businesses have been hit hard and the two that have been hit hardest are the hospitality and travel industries. Because of the pandemic, many trips were canceled, restaurants and bars forced into temporary closure, and many people are self-quarantining themselves. Due to these reasons, many businesses in these two industries have permanently closed and others are struggling to survive. 

Although certain businesses are having a hard time during the pandemic, other businesses were able to take control of the situation quickly and continue to thrive. One of the businesses that was able to thrive in the current pandemic is Eve Sleep and they were able to thrive due to the fact that they have a direct consumer brand. Cheryl Calverley, chief marketing officer of eCommerce retailer Eve Sleep told The Drum, “The reason we sell directly to consumers online is because it is the most efficient way, and it is never to be gimmicky.” Many businesses are having a hard time managing their complex supply chain due to COVID-19 so being able to sell directly to consumers helped put Eve Sleep ahead of its competitors. 

Another company, the Majid Al Futtaima, a Dubai-based holding company that operates shopping malls, residential properties, supermarkets, movie theaters, and other ventures in 16 markets was also able to thrive during COVID-19. In an interview conducted by McKinsey & Company with the CEO of Majid Al Futtaima, Alain Bejjani, Alain Bejjani explained that they were able to turn the situation around due to investment in a high performing online service which they have invested in previous years. “We wouldn’t have been able to do that in 2018 or ’17 or ’16, even if we had all the money in the world. It’s not about money. This is about the ability of your organization to shift gears dramatically, 180 degrees, in a span of ten days.” COVID-19 wasn’t something anyone could prepare for but luckily Alain Bejjani already had a tool ready to deal with it. 

Turning Things Around

Although plenty of businesses are held at the mercy of COVID-19, there are still several strategies that you can take in order to mitigate and recover from your losses. 

While the COVID-19 pandemic is going on, one of the most important things to do is to communicate with your customers. Letting them know about the changes that will happen to your operation due to COVID-19 will help prevent any misunderstanding and maintain customer relationships. Changes like business hours and new COVID-19 safety regulations are all important things that your customers need to know so communicating with them by updating your update about this information or sending emails to them will go a long way. 

With COVID-19 happening, any business is bound to lose customers which is why trying to maintain your current customers is so much more important now. Instead of trying to get new customers during this uncertain time, it is much more efficient and cheaper to focus on your current customers. In fact, according to The Drum, the cost of getting new customers can be 5 times more expensive. They also said that “Marketers should focus on brand-building and customer retention strategies that engage with happy customers for long-term results”. Instead of focusing on short term results by seeking new customers that might not even appear due to the pandemic, it is much smarter to make your current customers happy which will create long term results. 

Another thing to remember is that during these hard times, your customers’ needs have changed. What the customers want right now is the ability to buy goods without the need for physical contact. Like what Mr. Lynch of Everyday California said told by The New York Times, this means taking advantage of technology like “QR codes and Apple Pay to eliminate the need to touch any surfaces”. It will also be important to create/upgrade your online service for your business to give your customers an easier time to make purchases at home. Adapting to your customers’ new needs will help them relax as it shows that your business is taking COVID-19 virus seriously. By showing how you are taking the virus seriously, you will also gain your customers’ trust. 

Whiling maintaining good relationships with your customers is important, what is also equally important is retaining the loyalty of your employees. During the pandemic, you may need to temporarily layoff many of your employees and rehire your employees when the pandemic is over. Because of the $600 weekly bonus for the unemployed, some of your employees might be better laid off so it is important to discuss with them and make sure to reach a mutual agreement. Your employees are also facing hard times so it is important to understand their feelings. The worst thing to do is creating a rift in your relationship which will make the temporary laid off a permanent one. By maintaining your relationship with them through mutual understanding, you will be able to resume your business to normal right away post-pandemic by rehiring your employees back. 

Final Words

It is uncertain when COVID-19 will end but one thing is for sure. The actions you take from now on will definitely affect the chances that your business will survive through COVID-19. The chances of your business surviving will increase depending on how well your business adapt and the new business practices that you will be taking in the future.