How to Be Profitable During Covid-19
Whether you operate a brick and mortar store, an online retailer or you’re a consultant, now more than ever is a good time to connect with your community online. The COVID-19 pandemic has impacted everyone on the planet. One of the hardest hit groups currently are small business owners. If your business is still standing, you might be wondering how to structure your business to remain profitable during these uncertain times.
Plan for a new normal
In some way to remain profitable, some businesses will have to think more in depth on how the world looks like now.
As can be seen in the Consumer Pulse survey, stockpiling and product unavailability have forced 30% to 40% of American consumers to try alternative brands or products during the start of the Covid-19 pandemic.
The expected recession after Covid-19 will likely continue to motivate consumers to try more affordable or more available product options.
Some ways to creatively take advantage of the coming changes could include:
Offer products in bulk to reduce the amount of unsold inventory you have on hand.
Offering your products at a slightly reduced price than the market value.
If you are selling more than one product, focus on some of your lesser popular products to intice the new market.
Focus on your community
This boost from focusing on your community could help a small business stay profitable in the future. As consumers are thinking about spending their money meaningfully and putting their dollars back into their local economies, a gradual boost could be seen during the pandemic. If you operate a physical store, an online store or even if you are a consultant, now more than ever is a good time to connect with your community.
Control the costs of your business effectively
Customer behaviour is much more unpredictable now than it has ever been, which makes predicting customer sales and product forecasts very difficult. All businesses big and small have been cutting costs where they can to ensure a profit during this pandemic. You could help keep your business profitable by terminating any non essential costs, ending any optional projects, reducing raw material costs or by reducing employee hours.
Next Steps:
Many businesses that have so far weathered the storm are now reopening to a changed, decreasing economy. The future is uncertain. New rules and regulations require customers to wear masks and practice social distancing. High unemployment rates may relinquish people’s disposable income and some businesses will have to operate at a lower capacity.
As a new world order sets in, it’s time for business owners to find new innovative and creative ways to stay afloat and be profitable throughout the worldwide pandemic.
