The coronavirus outbreak is a big shock for the global economy. Maybe you are wondering how your business can survive? What can you do right now to stay afloat?
Projects are on hold, clients have smaller budgets, business is closed, everything has to run remotely. With major shutdowns all over the world, businesses face completely new challenges. And for most, the consequences of the coronavirus outbreak were completely unforeseen. Most businesses aren’t prepared for this at all.
If you are a business owner, you might wonder how to make ends meet during this time. How can you stay profitable? How can you make sure that you don’t have to lay off all your employees? How can you survive this situation?
There’s no guarantee. We already see many businesses struggle and close their doors. And nobody can forecast how much longer this situation will go on for. Wuhan, the city in China where the virus first broke out, was on lockdown for six weeks. How to survive depends on your business model and strategy.
But to help you come up with ideas, we put together 10 ways in which your business can survive the coronavirus outbreak. Each strategy could work if you find a way to apply it well to your specific business model.
Why Is The Coronavirus Outbreak Affecting The Economy
The coronavirus is first and foremost a health threat. On March 4th, the World Health Organization declared Covid-19 to be a global pandemic. But what exactly does that mean? A pandemic is an epidemic that has spread across a large region, for instance multiple continents, or worldwide. Pandemics of new diseases are especially dangerous, as nobody can predict how the sickness will look like and how to cure it best.
That’s why it’s vital to have safety measures that prevent the virus from spreading any further. Right now, about 100 countries worldwide are affected. Several of them reacted with major lockdowns. Most businesses stay closed and citizens are asked to only go out if it’s absolutely necessary.
The safety measures are absolutely necessary. But naturally, this has huge ripple effects on the global economy. Small businesses especially struggle to survive. If your shop has to stay closed and you don’t have any online alternatives, what can you do? Even if you have options to run business online, are consumers willing to spend money right now?
In times like this, nobody can make exact predictions. What happens will also depend on your business type, your strategy and probably the country you live in.
For many businesses, the Covid-19 outbreak means to go from 100 to zero almost overnight. To help you find ways to cope, we’ve put together 10 strategies that can help you to survive the coronavirus outbreak. Find them below.
Focus On Community
In times like this, it’s best if your business focuses on your clients and communities even more. Appeal to the loyalty and empathy of your customers. Maybe they can’t support you financially right now, but this is an opportunity to build a deeper relationship.
Be authentic with your customers and maybe even share what you are struggling with right now. In hard times, people work closely together. And they will remember this bond later, even after the crisis is long gone.
Monroe, Founder of Scout Collective put it like this: “I think compassion has been lacking in our society for quite some time and sometimes it takes something like this to refocus… on what’s important… and bring people together.”
So even if clients have less money right now and can’t support you financially – you can still focus on building long term relationships.
Adjust Your Marketing And Business Strategy Now
The next thing you should do to survive the coronavirus outbreak is this: assess your current marketing and business strategy. Be very honest with yourself, did your strategy work even before the outbreak? Did it really help you to scale?
If you study the economy, then you’ll notice that a few tendencies have already been there. We were slowly approaching the skill economy. It’s not enough anymore to have a degree to get a job. Skills are more and more important. The economy was also already facing changes due to artificial intelligence (AI). More businesses are relying on robots and need fewer employees.
But those changes were slow. The coronavirus outbreak – and all the consequences it has for the economy – makes changes happen much faster. So to stay in business and scale up in the future, you might need to adjust. Maybe you need to switch to a business model that relies more on online clouds and remote work. Maybe you need to change your offer to fit better with your clients’ needs? Or maybe you need to change your target market? If, for example, you offered low-ticket items so far, maybe you want to branch out into high-ticket offers?
Our advice is to access and change your strategy now. Don’t wait until the crisis is over because then it will be too late. Instead, start adjusting right away, so you are ready when the time is ripe. The biggest mistake you can make right now is to stand still. Now it’s the time to innovate.
Adapt To Current Consumer’s Needs
Some businesses survive the coronavirus outbreak quite well because they adjust even more to the consumer’s needs. Right now people are most interested in hygiene products and other items that keep them safe. And they are also looking for things to do while they are at home. That opens up space for the entertainment and education industry.
How can you tailor your offer and products to the current needs of the market? Do you have the ability to sell online? Are you an expert in something and could sell online training? Do you have something to sell that offers people security in times like this?
If you are a hairdresser, for example, you probably won’t have much business going right now. But you could start a youtube channel for hair care tips. This way you can stay connected with your clients and entertain them while they’re stuck at home.
Or, if you are a marketing agency and had to cancel lots of projects, you could branch out into online training. Right now lots of people are looking to learn something new.
Form Powerful Partnerships
We aren’t only in the skill economy, we are also in the partnership economy. Powerful partnerships are beneficial for both businesses. Maybe you used to be competitors but in times like this, it might be necessary to work together.
So, you could find partnerships in your niche or in a completely different industry. Sometimes a business completely different from yours can help you best. Maybe the supply chain of your business is disrupted? Now it’s time to reach out to others who might be able to help you. Make sure to create win-win-win scenarios. A win for you, the business partner and the consumer, too. Yes, the consumer is winning too, as you’re able to offer them completely new solutions. That’s how partnerships are most profitable.
Most conferences and events in the near future are canceled. Usually, those events result in powerful, new partnerships. As you can’t rely on face to face networking right now, you need to find new ways to network. Maybe you need to reach out more proactively? Leverage social networks like LinkedIn.
Pre-Sell Loyal, Existing Customers
In some business niches, it’s possible to rely on existing, loyal customers. In such a case, your focus can be to pre-sell them on new offers. For example, if you run a hotel you might have serious problems right now.
But the coronavirus outbreak will pass and people will go on vacation again. So, you could offer them discounts or other great bonuses if they book next year’s holiday right now. Think innovatively about how you can get some cash in right now. .
For this to work, you need to find a niche or vertical where people plan far ahead. Anything like big celebrations, weddings, events, or vacations. Address customers who are already loyal to you as they need less convincing to buy from you.
But don’t exploit your loyal customers. The relationship with your superfans is more important than making a quick buck. Focus on genuine relationships. Communicate why you are giving them special offers now. Even in times of crisis, your customers want to feel valued and appreciated.
Go Virtual Now
If you’ve been a local business so far, now it the high time to go online. Depending on your niche you might want to have an online shop or offer online training. You can even build a social media presence.
One of the reasons Dan Lok is doing so well is because he is present on every major social media platform. Not only does this give him huge social capital it also means more eyeballs see what he is doing. It’s a huge opportunity to reach an even bigger market.
Now is the time to find out how to take what you do online. But going virtual doesn’t only affect your products and offers. It also affects workflows and systems. Maybe some parts of the work can be done remotely from home? Maybe not every employee needs to be there physically? Maybe there are parts of the workflow that can be automatized? Make those changes now.
Many businesses are already going virtual. Meetings are held over zoom, and the communication over online channels is increasing. Local businesses are finding ways for customers to order online or via phone. But this all won’t help if your product can’t be consumed online or can’t be delivered.
That’s why hair salons, nail salons, gyms, and the event branches are struggling. For any of these to work, people have to be physically present. If your business falls into this category, you’ll have to get creative, as most people are asked to stay at home right now.
Get Help From Banks
If you want to survive the coronavirus outbreak, now is probably the time to ask for financial aid. Most businesses fail because they have no cash coming in. Getting a loan from a bank might help you to bridge the gap. Maybe some banks will decline you at first. That’s ok. Just keep asking until you get a loan.
Depending on your business and location, you might also be able to get financial aid from the state or other institutions, especially if you’re self-employed. Use all the resources you can get. Some states, for example, offer disaster loans for businesses. Those special loans have lower interest rates to give you a fairer chance to actually pay them back.
If you have to rely on loans alone you might be in trouble tho. Make sure to also activate your emergency funds. What’s more, you want to have a plan for how you will pay the loan back. Don’t blindly lend money without any strategy behind it. How can you use that money to make you even more money? How can you turn the borrowed money into an asset?
Right now is also the time to use credit cards as assets and to cut unnecessary expenses. Maybe that means that you have to make cuts in your personal life. The big project you’d planned, that home renovation or big move – it probably has to wait a bit. In times of crisis, normal is out of the window. Focus on your survival first.
Use All Your Departments
To survive the coronavirus outbreak, you want to make sure you use all the resources you have. Maybe your business has departments that usually work more in the background. Now’s the time to activate them.
Working on solutions together will also bring your team closer. Many business owners feel high pressure during the outbreak. They feel responsible for the whole team and don’t want to lay off the teammates.
It can be a lot of pressure to know that the livelihood of several people depends on the performance of your business right now. But in a well-working team, the employees will be open to look for solutions together.
If you communicate with all departments openly and effectively, innovative ideas will come to light. Maybe the tech team can work on new solutions that also help you in the future? Or maybe the human resource team has new ideas on how to use the talents of each teammate best?
Have A Long-Term Plan
In times like this, you want to have both a short-term and a long-term plan. You want to have something that is working right now. Something that brings cash in fast. But you also want to make sure that once all of this is over, you are still in demand. Don’t completely capitalize on the crisis. Don’t make money from the crisis, make money during the crisis.Don’t make money from the crisis, make money during the crisis. Click To Tweet
Here’s what we want you to understand: once the coronavirus outbreak is over, things won’t magically go back to normal. In fact, some things will never go back to what they were. The economy is changed for good. So, you need a plan for what you’ll do once the crisis is over.
What worked for you before the outbreak might not work afterward. Now it’s even more important to assess your strategies and adjust. You have to implement changes – not only to survive the outbreak but also to survive after the outbreak.
Most strategies that help you now will also stay relevant later. Strategies like deeper communication or going online consider the target market’s needs and building a personal brand. All of these will give you an edge.
Let us say this again: the coronavirus outbreak has changed the economy for good. Unfortunately, some businesses will never open their doors again. Employees will get laid off. That’s the hard truth.
But, some businesses will also thrive and find new opportunities. The crisis offers chances to be extremely innovative. The AI sector will boom after the crisis is over. Tech and online solutions will become even more important. Endless businesses will switch to a remote workforce.
The crucial step is to be innovative right now. Don’t wait till the lockdowns are over. Don’t wait until your employees come back to the office. Instead, act right now. Communicate new ideas. Adjust your strategy. And explore new ideas immediately. Find something that keeps your business stable right now. But also have that long-term view.
All It Takes Are 6 Steps?
This isn’t the first economic crisis we face. Dan Lok has seen a lot. 9/11, the stock market crash, the SARS crisis in Hong Kong. After 20 years in business, Dan’s strategies are tried and tested. And he also keeps innovating and adjusting his strategies.
What would it mean for you to learn from a seasoned businessman and marketer? The last few years, we analyzed the 6 vital steps that can get your business to 6-figures. In times like this, these strategies might be your key to survival.
In his 6 Steps To 6 Figures Formula Program, Dan shows you how to scale almost predictably. It removes a lot of guesswork, so your business can grow systematically. This works even if you start from scratch – and therefore it also works when you’ve been hit by the crisis. It might very well be the strategy change you need. Check out the 6 Steps To 6 Figures Formula Program here