The pandemic has closed down an innumerable amount of small businesses worldwide. As every person struggled amidst the crisis’s grasp, the lockdowns are costing the business world too much. Preventing most people from going outside obviously hurt the mom and pop business relying on normal human schedules and impulses.
Fortune estimated that 100,000 businesses that were temporarily closed due to lockdowns would eventually end up closing permanently. The prediction eventually ended up happening in September. It is estimated that 1 in every 5 businesses will end up closing by the end of 2020. The economic outlook will only get worse in 2021.
Maximizing profits and minimizing costs are not new ideas in the business world. This setup is the ideal scenario for businesses. However, these criteria are undoubtedly harder to attain when taking the pandemic into account. To not be a statistic, small businesses must learn to adapt and adjust to the new normal. Millions are unwilling to spend more and are more inclined to save up instead. How should businesses maximize profits and minimize costs to 2021?
Streamline Business Processes
Streamlining your business is the best way to squeeze out efficiency from the production line. Figuring out the steps it takes to efficiently make your product is fundamental. You need to identify and eliminate unnecessary processes to produce quality products. This method easily secures your business. As your products improve, the demand will steadily increase. With streamlining, manufacturing at the speed your business requires to match the demand will be easy. More people will patronize the product if you continue to manufacture products. A fortunate byproduct of streamlining your business is cutting the cost of making quality items.
Digitization of Businesses
Doing your business online is a surefire way to increase profits and minimize expenses. Almost all businesses right now are taking their business online. Because almost everyone is staying inside their houses, accessibility to your business is the key to success. You can minimize marketing costs while also increasing the market reach of your business through internet marketing.
Proper Usage of Logistics Support
Using your logistics support to your strengths is key to minimizing returns and maximizing your deliverables’ profits. Unlike Amazon, McDonald’s, and Alibaba, most small businesses cannot afford an in-house delivery system. Small to medium-sized businesses have to rely on delivery apps to have their products delivered to their customers.
If you are shipping more than 50,000 products annually, maybe it’s time to consider using USPS Cubic: a USPS’s lesser-known program that prioritizes business deliveries. If you are delivering food items, consider subscribing your business to famous delivery applications. While it might cost your business a little, having your product displayed in the apps as an option, and cutting your own delivery costs will only expand your business.
Taking Care of Your Employees
Lastly, to minimize training costs and maximize your products’ quality, you must remember to take care of your employees. It might not be an obvious move, but caring for your employees’ welfare who are front-lining for your business is a must for your business to survive. Losing them due to business redundancies and retrenchments will eventually cost your products’ quality. It can cost your business training costs as well to only train your replacement employee. Keeping their welfare in check is synonymous with keeping your business running.
To survive the pandemic, large or small businesses must be able to adapt. Large businesses are all taking losses, while small businesses keep falling like flies. Streamlining your processes, having an online presence, properly utilizing your logistics support, and taking care of your employees are the top priorities if you want to weather the storm as a small or medium-sized business.