The challenges in restarting a small business in times of COVID-19

 

Two months in total lock-down, no revenue generation and depleting capital. The small businesses in India and the world over are waking up to the harsh reality in the aftermath of the ongoing pandemic.  The service sector has seen a sharp decline in revenue. Quite a few of such entrepreneurs have been forced to shut shop. Many of the salaried employees lost their jobs and the self-employed people lost a host of their clientele.

Now that the initial panic and uncertainty has subsided and people are coming to terms with the new reality of life, everyone is looking for ways and means of coming back on track. With stricter norms of functioning and a reduced work force at hand, these businesses have an uphill task to regain their former glory. It is not realistic to assume that a business will take off once it opens up. With people still preferring to stay indoors, businesses now have to devise ways to reach them. To stay relevant in today’s COVID-19 hit environment, a small business needs to reinvent itself. With no marketing force in place and minimum resources, the possible solutions that these entrepreneurs can look out for, would be -

1.      Going digital.

2.      Exploring adjacency for the existing products or services.

3.      Exploring new markets opening up due to COVID-19.

4.      Identifying new methods of doing the same business.

 

Going digital-

Making use of social media, online portals and community groups is a great way forward. Information spreads effectively as word of mouth spreads, giving access to untapped markets and new customers. For examples, quite a few chemists have started taking orders on WhatsApp and eateries have partnered with aggregators to reach out to their patrons. Like schools and colleges, even private tutors, art and music classes have moved on to the online platforms.

Even gyms have moved online. One of my friends owns a ladies’ gym. Since it is practically impossible for him to open his gym right now and the chances are bleak even in the near future, he launched his own YouTube channel and devised an exercise routine for his existing as well as potential clients. His online services include customized diet plans and video sessions. And it hardly matters where his gym is located, since he now has clients from other states as well.

 

Exploring adjacency for the existing products or services-

Expanding product/ service portfolio is the need of the hour. For example, tailoring businesses have started venturing into making PPE kits. Nannies and cooks who are left out of jobs are venturing into micro scale businesses like making and selling home-made snacks and providing lunch services.  

 

Exploring new markets opening up due to COVID-19-

Temporarily shutting down a loss-making proposition and venturing into a new, promising business is another way of combating the tricky situation the entrepreneurs can think of. I have seen hairdressers shut their shop and take up selling vegetables as a means to sustain themselves and their support staff.

Identifying new methods of doing the same business-

Offering bundled services, add-ons like pick up and drop facilities are few of the ways in which smaller entities can revive their businesses, still being in competition with the bigger businesses. Identifying local distributors and suppliers and replacing the bigger or distant ones will reduce cost, time and uncertainties related to logistic issues.

There are a lot of such entrepreneurs that I get to see in my neighborhood. The stationery shop owner across the street, for example, gives customized solutions to all the office needs of people working from home. You just have to name it and he will deliver it at your door steps. Earlier, if something was not available in his shop, you had to go searching elsewhere or order it online. During lock-down, when most of the online delivery portals had restrictions, he was willing to scout the wholesale market for your needs.

For last few days, I have seen a lady put up a temporary shop right outside the gated community I stay in. She sells flowers and pooja related stuff. She has with her, a few handmade fliers that she offers all the passersby. The little piece of paper has the all-important information regarding the services offered and her contact details. And I have observed that whenever I see her, she greets me with a pleasant smile.

Kudos to the human grit and determination that I get to see around me. The sheer perseverance and a never-say-die attitude of our people will see us through these testing times.