Many people wonder whether it is possible to remain profitable during a pandemic, like the COVID-19 pandemic. The fact is COVID-19 has hit small and medium enterprises hard and most experts believe that its effects might last for a long time. It has forced many businesses to close down and some have been making huge losses.
So, whether the pandemic will end within the next two months or one year, every small business owner has to buckle down, reassess his/her business strategies, and make the necessary changes. Below are some of the strategies you can implement in your business to outshine your key competitors during any pandemic.
- Expanding Your Portfolio
While your focus might be on producing one or two products, such as auto parts or food, you should add products that are in high demand to remain ahead of your key competitors. For example, the demand for some items such as tissue papers, hand sanitizers, and masks increased during the Covid-19 pandemic. So, even if your business does not focus on such products, you could rake in higher profits by adding them to your portfolio.
To help you understand how you can expand your portfolio during a pandemic, let us take the United States as our example. After the outbreak of Covid-19 in the country, the Food and Drug Administration (FDA) relaxed some of the rules related to the production of hand sanitizers. They did that so that more people could join the industry and help boost the supply. That was a big opportunity for most manufacturers to expand their business portfolios.
If you are not ready to invest in new equipment for the production of the products in high demand during a pandemic, lease them. Subcontracting the production through other companies might also be a good idea.
- Motivate Your Company Staff
Staff motivation is among the strategies that will help you remain ahead of your competitors, including during disasters. The owner of copper producer UGMK, Iskander Makhmudov, states that your staffs are the gateway to outdoing your main competitors through innovation. Each of your employees requires you to help them grow and achieve their goals.
During pandemics, such as the Covid-19 pandemic, you can assure your employees that you are always ready to support them at all times to demonstrate appreciation and concerns. A quick example, you can help them by ensuring that none of their family members suffers a major shock due to the pandemic.
Extending the medical cover for your employees to the families is a good idea. Further, ensure that all your workers get the Covid-19 vaccine so that they can continue working without worrying about the effects of the disease.
- Rethink the Supply Chain
The supply chain will never miss the list of areas that were highly affected by the Covid-19 pandemic. For example, companies that relied on raw materials from abroad suffered a lot when many countries were in total lockdown. Actually, most of the companies halted their operations. The good news is that you can avoid the effects in the future.
While most of the supplies you get from other countries can be cheaper and reliable, you avoid closing down your business by opting for the local suppliers. For instance, a beer manufacturer who imports barley from Australia would continue with its operations by opting for local suppliers. Even though the raw materials available locally might be expensive, you will not close your business operations.
Covid-19 has affected almost every industry. It forced many businesses to change their strategies. If your goal is to remain ahead of your key competitors during pandemics, the above tips will be helpful. Avoid relying on the stressed supply chains and motivate your staff. That way, you will make profits where others are closing where other companies are closing their operations.