Small businesses are a significant contributor to the global economy. They generate 44% of our country’s GDP. With every state issuing stay-at-home orders and closing non-essential businesses, the small business sector appears to be the most endangered and vulnerable to the coronavirus pandemic economically.
How are small businesses affected by the coronavirus pandemic?
The profits of small businesses depend on regular, short-term demand. Once the request is unexpectedly and rapidly reduced, companies start to face serious difficulties. Sadly, most small businesses do not have resources or a safety pillow for a state of emergency like the coronavirus pandemic. Most companies can’t afford to close up for an indefinite amount of time without any budget cuts, layoffs, debts, and even complete shutdowns.
Most business owners worry about economic uncertainty, customer demand, and spending reduction. Whatever happens, your business is not alone. Some solutions can help eliminate the damage and avoid a severe crisis. Here are a few practices that small businesses can use to soften the consequences of the coronavirus pandemic.
How can small businesses survive the coronavirus pandemic?
Consider taking governmental loans and aid packages
In addition to governmental loans, state officials are also taking the initiative and offering various aid packages. If your business is facing the impact of the coronavirus pandemic, consider looking at the terms and conditions and applying for a loan. Additionally, a few private sector FinTech companies have expressed their intention to lend to small businesses, like Kabbage and Fundbox. Among these aid programs, Facebook has launched grants for small businesses totaling $100 billion.
Reformat your services
This option is not available to all businesses. Still, it can make a difference if you can fully or even partially reshape your selling model to take out or deliver. It is an optimal solution for food industry businesses. However, retailers and other companies can also develop an online strategy to keep the sales flow going.
Renegotiate contract terms
In the current situation, you can rearrange your rent, debt, and other obligatory payment terms. Many landlords and financial entities are allowing the postponement of payments for business owners, offering discounts, and allowing interest-free payments during this challenging time. Before cutting employees or executing other painful budget operations, explore how to maximize your spending. Above all, stay in touch with your customers. Your response to the crisis is forming you as a brand in the eyes of the consumer. So, don’t forget about your audience and continue to gain their loyalty and support.
Overcoming coronavirus pandemic with GoShip
GoShip is ready to meet your logistics needs during the coronavirus pandemic. We understand small businesses’ financial difficulties and offer affordable shipping services to keep your marketplace in the race. Visit our website to get a free quote and make your deliveries cost-effective.