Coping Mechanisms to Grow a Business During a Pandemic
Seemingly overnight, the normal course of our lives changed dramatically. Businesses, schools, and public facilities shut down, while companies fortunate to remain open had to transition their employees to a work-from-home setup. Covid-19 brought a complete shift in our lives, where adjustments are necessary.
Indeed, the pandemic has significantly changed the way we live and work. It is tough to do business in an uncertain environment while in the midst of a global crisis. Many companies have already closed down, while many are still facing financial struggles and an uncertain future.
While it has been a tough time for the business world, there are ways to ensure your business’s growth and establish the resilience of operations and cash flow. This can be done by knowing how to handle your connections, such as employees, customers, and suppliers. Below are some ideas that can get you creative and step up your efforts without risking too much for your business.
Suppliers
Supply chain operations met the biggest impact from the pandemic, leading to supply shocks and acute shortages in many businesses. If you have suppliers overseas and disruptions in deliveries, it’s time to reach out to suppliers.
Get in touch with suppliers to ensure the timely delivery of supplies. This way, you can easily manage customer expectations and cash flow plans. Also, negotiate with the supplier about deferred payment terms for payables. Extend courtesy to suppliers by sending them advanced notice if you cannot pay them immediately.
To ensure health practices, spend money to protect your supplies and resources. If you have delivery vehicles, make sure to protect any consumable from contamination. The best way to maximize delivery trucks is to install truck curtains to ensure the safety of your products. You can search online for suppliers that offer customized curtain siders for delivery vehicles.
Employees
It is important to note that Covid-19 is a worldwide health problem that requires a human response. You have to start with your people by ensuring their health and security.
Ever since establishments begin to shut down, companies are under scrutiny because of how they treat their staff in terms of delayed salaries and unpaid leaves. Meanwhile, companies like Airbnb have been implementing a cost-cutting restructure to support their staff.
Keep in mind that the way your business responds to the crisis makes a great impact on the consumer. Any reputational damage can be long-lasting and significant. In tough financial situations, offer support as much as you can by ensuring jobs and cutting additional slack. Not only it serves as a reputational boost, but it can also repay you by increasing customers and staff loyalty.
In terms of health, take time to implement the best health practices to keep employees in a sound state. If your business requires a continuous operation, follow health and safety practices to prevent transmission among employees. You can also allow employees to work remotely so they can stay with their families and minimize contact. You might want to learn how to delegate tasks effectively while using online communication channels.
For quarantined employees, create a contingency plan if some of them can no longer come to work. You can also form different work teams to reduce the risk of having the entire crew put into isolation. As much as possible, reduce any emotional or financial distress to your employees. Be sensitive if any of them go through personal circumstances and offer support the best way you can. These efforts can go a long way by building employee loyalty.
Customers
Moving your business online helps keep the customer flow and sales coming in without risking any people by physically reopening a business. While this move is only possible for some businesses than others, having the right plan in place will ensure the success of your business while operating in the virtual space.
Retailers may consider expanding or setting up an e-commerce platform. If you offer coaching services, you can move your business online by offering virtual classes. You can also offer products in digital forms, such as e-books. Simultaneously, step up your digital marketing efforts by updating your website and promoting your business on social media. But you have to be creative as possible to pique the interests of your customers.
As you change the way you do business, you will notice a corresponding effect on the cash flow. You can start by reaching out to customers by informing them you will continue doing business with them. You can make phone calls by providing updates about orders and new payment terms. Also, make follow-ups and encourage them to be open if they are experiencing difficulty.
Next, propose additional services by asking if they need other products or services they cannot find in other businesses. Treat this as an opportunity to explore more options that will bring in additional cash for your company.
With the rapid shifts in the business industry, companies need to learn how to be creative and flexible in growing their business. But before thinking about your sales, it is important to prioritize and foster your connections first, starting from your employees, customers, and suppliers. After all, your business is nothing without these people.
The e-commerce industry continues to grow each year. Last year alone, it grew by around 32 percent compared to the year before, which is the fastest so far in the past decade. The pandemic may have helped this growth as stores started selling online due to the authorities’ restrictions.
With this, you may be interested in setting up your e-commerce business. Here are some business ideas you may want to consider when you dive into the e-commerce industry.
Setting Up an E-commerce Store
But before offering anything, you should set up an e-commerce store where you’ll sell the products. You have several e-commerce platforms to choose from depending on your coding knowledge and skills. Among the more popular options are Shopify, WooCommerce, Wix, and BigCommerce.
Some of these platforms require some coding knowledge, while others are user-friendly that you only need a domain name and website hosting. Basic designs on the website are already suitable for you to sell products online. But you can also enhance their look by hiring professionals to do it for you.
For instance, you can work with an agency that creates stores using web development tools from Shopify. These agencies can enhance the look of your website and make it user-friendly. Additionally, they can also make your e-commerce stand out in the market.
When you’ve set up your e-commerce site, it’s time to select the products to sell online. Here are some product ideas you can consider.
Second-Hand Products
Selling second-hand but good-quality products will always have a place in the market. People are always on the lookout for bargains, and they normally buy used-but-not-abused products in the market. With this, you can start checking your cabinets for any items that you can sell online. These items can include clothing, furniture, and jewelry.
After selling what you have at home, you can also visit any open thrift shops to source your products. Just make sure the thrift shop doesn’t have a website, or else you’ll be competing with the place where you’re sourcing your items. Additionally, the price should be reasonable enough to entice visitors to buy your products.
Educational Content
If you’re a teacher, you can create a course that you can sell online. Since many schools worldwide have implemented remote learning arrangements, you can offer courses that may help learners while they’re taking lessons online. The content may range from elementary-level lessons to university courses.
6 Types of Expenses Involved when Starting a Business
Everyone dreams of becoming their own boss and finally call the shots. The best and sometimes the only way to do so is by starting your own business. According to the Small Business Administration, approximately 627,000 new companies open their doors each year, ushered in by aspiring entrepreneurs.
However, starting a new business is very difficult, as any entrepreneur will tell you. One of the largest hurdles is amassing enough capital to do so. Prospective businessowners often turn to bank loans and other organizations for financial assistance in this matter. But what exactly are the costs involved when opening a new business? Here are 6 types of expenses associated with opening new startups.
Costs Involved with Starting a New Business
Everything costs money, even establishing your own company. But just like investments and life insurance, the money you spend on opening a new business can flourish and secure your financial stability in the future. When planning to start a company of your own, you should be aware of the six most common types of expenses involved.
Here’s a comprehensive rundown of these costs.
Insurance
Your business will need to have its own insurance policy, completely separate from your personal insurance in most cases. This is to protect it in case your company is broken into by criminals, catches fire or some other negative incident. Aside from insuring the business itself, you may be required to provide your employees with their own insurance policies. These protect workers and gives a modicum of financial assistance should anything untoward happen to them on the job. Premiums on these policies vary with each company and your provider.
2. Permits and Licenses
Whether you’re opening a new bar or selling natural preservatives for cosmetics, you will need to secure business licenses from local or even national authorities. For example, if you’re opening a bar you will need to a liquor license as well as a business permit. These are often affordable, although this depends on local legislation. The more areas of industry your business covers, the more licenses you’ll need. This does not include voluntary certifications thatboost your company’s reputation.
3. Real Estate Costs
There are many differences between starting your business and setting up an online store. One stark difference is that almost all startups will require an office space, especially if you have more than a handful of employees. This means you’ll either have to rent an office or purchase a building for your new enterprise to occupy. This tends to be the most expensive part of opening a new business and can comprise the largest portion of your business’s overhead afterward.
4. Technological Costs
This covers costs such as computers, internet services, mobile devices and other electronics. Nowadays, every business needs at least one computer, even if its solely to track your expenses and client information. Depending on the industry of your startup, your technological costs can skyrocket. For example, a boutique bakery will have drastically lower technological expenses than a software development firm.
5. Equipment Expenses
Not every device or piece of hardware you’ll buy for your new business falls into the technological category. Your desks, ergonomic chairs and carpeting are all part of what’s known as your equipment expense. This also covers specialized forms of equipment. Continuing the example above, a bakery will need plenty of ovens, stand mixers and possibly even a walk-in refrigerator. Don’t be tempted to scrimp on this part of your startup costs. A comfortable workplace with the right chairs and desks can mean the difference between a profitable first year of business.
6. Debts and Obligations
Finally, there are the costs your business will incur before it ever opens. The primary examples of these types of costs include any bank loans you may have had to take out just to finance any of the other aforementioned costs. Another type of financial obligation you’ll have to pay off sooner or later includes returning investment costs to all backers who helped fund your business. This does not count any personal cost you may have accrued financing the enterprise. For example, if you took out a mortgage on your house to buy equipment, that’s a personal cost and shouldn’t be part of your company’s obligations.
Starting a new business is a challenging and complex process. Understanding every aspect of this process is important in ensuring you know what you’re getting into when you want to become your own boss. Knowing the costs involved is essential in preparing yourself and your affairs properly for becoming an entrepreneur.
A New Year And A New Look For Your Business Website
2021 is here, and you need to welcome it right. For business owners, this means giving your website a complete overhaul. It is even more important because of the shift that the world has experienced, with the digital experience becoming a more powerful part of daily life. If you left your website static this past year, then you need to catch up. Here are some changes that you should be making to ensure your site stays competitive.
Visuals That Pop
Websites are visual mediums, and yours should be a feast for the eyes. When visitors open your site, they should immediately recognize that it is yours. There are various ways to do this. For one, you’ll want to have prominent branding on your website. Logos and prominent positioning should make your site visually unique, an important factor to aim for if you want people to remember your company. Combine this with excellent graphic design, and your site’s visitors will be very impressed.
Don’t stop at the basics either. You need to fill your website with pictures of your products and services at their best. For example, if your business sells expensive fashion accessories, then pictures of them should be a prominent part of your site. It would be best if you made them look good soretouching jewelryphotos to be attractive is part of that. The result is that your website becomes a visual showcase of what you can offer.
An Online Store With Your Products
Many people have gotten into the habit of online shopping during the pandemic. Online purchaseswent up by 30 percent in 2020. Now that the new year is here, that habit is not going to change. Adding an online store to your website allows you to be part of people’s changing purchasing habits.
But a simple store is not going to cut it. You compete with online giants like Amazon. It would be best if you gave potential customers something more than basic products. Offer things like free shipping or additional services.
If your company offers services instead of products, an online store is not exactly possible. But you can allow potential clients to contact you online, which can quickly lead to them hiring you. For example, any potential inquiries about your services can be sent through your website. Following these inquiries up can potentially become an opportunity for you.
Better User Experience
When visitors go through a website nowadays, they wanta smooth user experience. The moment they click on the link to your site, visitors should experience an optimized experience. This means ensuring faster loading times and smooth accessibility. This is whether they are using a desktop computer or a mobile device. Additionally, it would be best if you designed it to guide visitors in the right direction. If a visitor feels like they are in a maze, then your website needs a redesign so that it is less confusing.
Increased Automation
The big push a lot of websites are experiencing is to have more automation. This is more a behind-the-scenes update than something visible. This is because it mainly focuses on the upkeep of the website. Websites often need a lot of attention, with a daily checkup being the bare minimum. You might need to check on it every few minutes to ensure that it is running properly. This is where automation comes in. Security updates being automatically implemented as well as auto-backups are an important part of that.
There is a part that interacts with customers, too. Automated newsletter senders can be integrated into your website so that they can collect visitors’ emails so that they can send them out seamlessly. Additionally, having a review and testimonial aggregator on the website can help promote your business.
Improved Data Protection
Your website also needs to move towards being more secure. Online security is very important nowadays, especially with the increased online presence of people. Several essential changes include moving towards the HTTPS protocol so that hackers would not be able to change website information to secure personal info. Additionally, moving towards a safe website host and upgrading your software can be a good move.
Your website needs to change with the times. Post-COVID online life is much different, with a lot of people expecting more from websites. They have been stuck at home for a year, and they’ve been using it to surf the internet. If your website doesn’t rank with the best, you won’t be getting the same attention as others who have kept up with the changes.
Making money for your business and getting a big sale is pretty exciting. It is something that you will have set up the business for, and is what will help you to get it to where you want it to be. However, getting paid as a small business can be tricky. There can be late payments, meaning you need to chase missing invoices, as well as having to spend time and money and effort getting in contact with people who still owe you. You could even not get paid at all, and cash flow problems are one of the reasons why a number of businesses actually fail.
If you use a B2B model in your business, then the chances are that your customers are going to have particular payment terms. So before you start out doing any selling, it is a must to have some clear policies so that you can ensure payment, promptly and on-time. It can be hard to walk away from a sale, but you need to look after the potential of your business. So here are some things to think about, to ensure swift payments and better cash flow for your business.
It is a must to have some defined policies right from the start. What kind of credit collections will be in place if payments aren’t made? You need to know all of this before you offer credit or allow people to pay you after the service has been completed. You should also think about how much credit you can give without it impacting your cash flow, as well as putting into place the payment terms that you want to set for anything that is overdue.
Automation
When it comes to getting paid, and getting paid by a certain date, you need to make sure that you are getting your invoices out on time. This can be difficult when you’re doing it yourselves, as there are a number of other things that can take up your time as you run a business. Automation in any business, but particularly for something like invoicing, can be a great idea. When the invoices will just get sent out on a certain date, using something like OnPay Solutions, you don’t have to worry about them not being done on time. Then you are more likely to be paid on time, and it will carry on like that.
Communicate your policies
When you get a new customer or a new business looking to use your services, then you need to lay out a clear statement with all of your business payment terms and conditions. This is something that should be clear on all invoices, as well as any contracts that you have with customers or clients. The things to state are penalties for late payments, as well as making sure that follow through with the charges if it comes to it. They can’t complain about it if they have had the policies and fees communicated clearly to them.
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