The pandemic had a huge effect on businesses across the country. It sparked the closure of thousands of businesses and a spike in the unemployment rate since it started around a year ago. But some businesses thrived even if industry watchers expected them to scale down their operations. With this in mind, people started to ask what these businesses did to succeed in the middle of the pandemic.
Here are some things that businesses can do to thrive during a pandemic.
Strategically Cut Costs
During the pandemic, many businesses implement cost-cutting measures to allow them to survive. These businesses typically focus on an across-the-board measure to reduce the budgets of every department.
For instance, the business will reduce all departments’ budgets, from the marketing to the customer service departments, by 10 percent. But cutting down the budget for one department might not have the same effect as a budget reduction in another department. The marketing department might not feel the budget cut since their target market might be lying low for the moment.
On the other hand, the customer service department might feel the budget cut’s effects since they still have to work with the existing customers of the business. If the budget cut results in the lay off of some customer service personnel, the remaining personnel will have to take on the work of laid-off personnel.
To avoid this situation, the business can perform strategic budget reductions to prevent issues with its workforce’s performance. In the pandemic, many companies asked their employees to work from home. This situation presents a good opportunity for a business to cut a considerable amount from its budget, rental cost.
Since the employees are already working from home, the business will not need a huge office space. It can transfer to an area that’s just enough to store office equipment, such as its servers that allow the business to continue operating online. This can give the company more leeway when it comes to its monthly budget without laying off its employees.
Jump on Opportunities to Innovate
Entrepreneurs are quite familiar with situations similar to this since they look for opportunities to make money all the time. The only difference in this is that a business owner should look for options that allow them to succeed in their business line or create a new business related to what they already have.
For instance, the real estate industry turned to virtual house visits and selling house and land packages online since the pandemic started. These companies innovated to allow them to maintain their contact with their target market.
Restaurants have also opted to offer delivery services to reach their clients who are likely already working from home. Some restaurants are even using online ordering systems where customers make their orders online. Their orders are prepared for either pick-up or delivery. These innovations also allow these restaurants to continue operating while keeping controlling their expenses.
Streamline the Business
Streamlining is another way for a business to succeed even in the middle of a crisis. The process requires reducing the layers of bureaucracy within the company to allow its employees to improve productivity. One way to implement this is through the use of technology.
For instance, managers can have some projects approved electronically as long as they meet the company’s pre-set requirements. Giving managers the flexibility can also increase productivity and efficiency within the company.
Reducing the number of gatekeepers can also streamline the processes in the business. While these gatekeepers have specific duties to perform, they might delay projects that allow the company to increase its revenues. Due to this, the business should check the areas where they can allow pre-approvals to give managers the flexibility they need.
Inform Your Customers
Keeping customers in the loop of the business allows it to prevent any issues in the future. For instance, when a company constantly updates its customers about its products and services, it will have lesser issues when it has to raise prices due to changes in the market.
The pandemic affected the supply chain around the world. These effects have also influenced the prices of components that compelled some companies to raise their prices. If these companies never kept their customers in the loop about the situation, they can expect protestations from the customers when the price increase is announced. On the other hand, if the customers are well aware of the situation, they’ll likely understand the price increase. They will continue to patronize the products and services of the company.
Succeeding during a pandemic takes a little bit of foresight on the business’s part to ensure it can implement the necessary measures whenever the situation requires it.