Earlier this year, the government published a study on how Covid-19 affected small businesses. Many of them had to close shops, which resulted in the loss of jobs.
Thankfully, the government released financial aid to these small enterprises. But it will take more than that to keep them afloat. As the business owner, you need to make tactical decisions regarding purchases and investments.
The process can be overwhelming. But it will ensure the survival of your business. The question is where to begin. Let us break down the essential purchases that you will be making.
Beef Up on Your Insurance
The world was left reeling at the emergence of Covid-19. We may not predict the future. But we can at least lessen the impact of unwanted circumstances. This feeling of vulnerability taught us to rethink our insurance coverage.
This lesson is also applicable to your business. You must augment your insurance coverage. This type of investment should not be limited to fire protection. You need to get the delivery van and the logistic personnel insured.
You may be wondering why you should buy insurance for your delivery man. You might also ask what kind of coverage you should buy for your employee. Purchasing a non-owner SR22 will give you peace of mind. Doing this will ensure that you will not face any legal issues if your logistic personnel is in an accident.
If you are in a general partnership type of business, it is prudent to get life insurance for yourself with your partners as the beneficiaries. They should also purchase insurance coverage for themselves with you as the recipient of the proceeds.
This investment prevents any financial problems for the remaining partners. Let us say that one of the incorporators died. The proceeds of his life insurance will help you cover the liabilities that he owes to the partnership.
Updated Pieces of Equipment
Your company needs a new image. This rebranding process will not immediately make your business more profitable. But the output will help in bringing more customers.
Businesses usually reinvent themselves by creating a new product or service. This process can also involve refining your existing products or improving your customer service. The new image should erase bad connotations that your clients have with your business.
You should build your business from the new product or improved customer services. It can be your competitive edge. Let us say that you are one of the numerous coffee shops in the city. Your new product or your excellent customer service will set you apart from other players in the industry.
Rebranding can be easier if you have new equipment. The updated piece of equipment will make your operation more efficient. But should you buy it or lease the machinery? Let us consider the following questions:
- How frequently will I use this machine?
- Do I know how to maintain it?
- Do I qualify for an equipment-financing plan?
- Are the requirements for an equipment-lease scheme easier to acquire?
It is wiser to purchase a piece of equipment if you will be using it daily. Let us continue with our earlier illustration. Considering that you are running a coffee shop, you should purchase an espresso machine because you use it every other ten minutes.
You want to capitalize on the online shopping trend that CNBC reported late last year. To do that, you want to get a delivery van. In this scenario, it is wiser to lease the equipment. You can still cater to those who order from home without the delivery van. These customers can tap GrubHub or Uber Eats.
Digital Marketing Scheme
Now that you have built the foundation for your business, you need to get customers inside your premises. Should you go with the established marketing mix? Or should you go with digital marketing?
The government published a study stating that traditional advertisement is still effective. But it can be quite expensive compared to digital marketing. It is useful if you are aiming for a nationwide market.
Digital marketing is more useful if you target a local audience. Investing in the services of an SEO company will ensure that you will reach your target market.
The United Nations Conference on Trade and Development (UNCTAD) reported that the global economy might lose more than $4 trillion because of Covid-19. Although governments are working overtime to lessen the impact, they can only do so much.
You must implement changes to your business so that it can remain afloat. These tips will not only help it survive the pandemic. But they can also aid in your company’s future expansion.