According to the Australian Bureau of Statistics, a company will count as a small business if it has less than 20 people employed. Although the definition of a small business will really depend on how many proprietors there are for a particular business. More than likely, these businesses will have independent ownership.
In the United States, small businesses are those who have around $35 in total sales. ; Although $35 million isn’t something to sneeze at, it’s still a finite amount of resources compared to larger burgeoning corporations. Outside the eyes of the government, businesses that are making less than $7 million in sales are usually those that are considered small.
But whether you’re located in North America, Australia, or Europe, it’s still a known fact that businesses around the world have been gravely affected by the pandemic and the economic crisis that followed after it. Since most of these establishments are often owned independently and often by just a single individual, these can make them quite vulnerable to the effects of an economic crisis, especially without support and financing from government entities.
How Have Small Businesses Been Affected?
In the last few months, most small businesses have been struggling to keep themselves “afloat,” especially restaurants and cafes that will require a steady stream of customers. Although some businesses and industries are still doing well for themselves, especially those that are more digital in nature, almost all businesses have been affected by the globe-spanning pandemic.
With the “new normal” coming into effect, most businesses — whether large burgeoning companies or small businesses — will need to adapt to changes rapidly. Most of the time, small businesses will make drastic changes to their mode of operation and their business model.
But how do you measure the current state of your business in uncertain times? Here’s what you’ll need to know.
Financing and Payroll
One of the best ways of ensuring that your small business’s operations and sales are left unabated is financing the workforce. Timely and full payments of the workforce can keep them happy and satisfied, even during uncertainty. Fortunately, there are bookkeeping solutions for small businesses comprised of professional bookkeepers who work with accountants and qualified mentors.
Information is an important asset when most businesses are uncertain of their current situation. Having professionals keeping tabs on real-time information can help you formulate plans to react and adapt to pressing issues, both in the market and business setting.
Another effective means of having an edge is by ramping up your marketing campaigns, especially in the digital scene, even in times of turmoil. With billions of users worldwide interacting with social media platforms, it’s only logical that most small businesses start migrating to a more digital scene in spreading awareness on a certain product or service. Marketing strategies that would otherwise work in a more “traditional” physical environment might not necessarily work as intended in a more digital scene. When marketing particular products and services, it’s important to adapt to trends and the social climate.
Usually, data gathered from marketing campaigns are a great indicator of how well your business is doing and the current position of your service and product.
When it comes to the method of conducting business, drastic changes need to be taken for the continuity of the business. As data has shown, industries that involve physical contact are known to be hit the hardest by the pandemic and the economic crisis since there is a slump of individuals availing of these types of services. In fact, much of the international community has deemed face-to-face contact as an occupational hazard.
Small and large businesses alike have been switching to a more digitised and contactless approach. Even though most industries have been affected by the ongoing economic crisis, the E-commerce industry has been flourishing and doing well for itself compared to other industries. There are varying factors on why this industry is left relatively unscathed. Most would theorise that appealing to online and digital marketers can easily get sales up without relying mostly on foot traffic.
There are different ways of measuring your business’s success, especially in times of turmoil. Crisis management is a key aspect of almost any business. Employers will have to be quick on their feet to ensure that there is business continuity. In uncertain times, being able to respond and adapt to a situation can help ensure that your small business will be in the right position. Still, it’s important to remain vigilant in such uncertain times; keeping an eye on the ebb and flow of the social and economic climate can give you a glimpse of what the future holds.
Slowly but surely, businesses have been opening up while countries have started to get back on their feet. By the end of the year, most experts would suggest that all-time high confidence of a “cure” to the pandemic has allowed most businesses to re-open and get back on their feet. Still, there’s a long way to go as numbers are still rising throughout different parts of the world. In countries that are free from COVID-19, small businesses have started to re-open and gain more traction.