THE MID-WEEK DOSE: THE CORONAVIRUS AND SMALL BUSINESSES

Image Source: Global News

TIME TO SWIM OR SINK

The Coronavirus has literally shaken the whole world. To date, more than 200 000 known cases of coronavirus infections have been reported, with nearly 10 000 already having succumbed to the plague world-wide. Various governments around the world have restricted certain businesses and banned huge gatherings. Authorities are encouraging citizens to practice social distancing in a bid to try and slow down the spreading which, so far, has been rapid in some places. This current situation undoubtedly affects some businesses in one way or the other. I decided today to focus my attention on small business operations as the world deals with this unprecedented phenomenon. What are you doing as a small business owner or manager? I believe this is the time to face reality and be pro-active, failure of which may result in some businesses being wiped out of existence within the next few months. I have put together a few suggestions that I think may assist in keeping your business afloat until the storm is over. However, nobody can predict with certainty how long this situation is going to last for. This article does not make me smarter than you, far from it. Nevertheless, I just thought of contributing to the pool of ideas that are already circulating worldwide. Let’s take a look at these suggestions.

1. Acceptance and Communication. In the summer of 2019, some countries, particularly Mozambique and Zimbabwe, were exposed to a natural phenomenon, Cyclone Idai, which claimed thousands of lives and destroyed homes, schools and businesses in its path. You may agree with me that the loss of human lives and property could have been less if the governments and businesses had been a little more prepared before the cyclone hit the lands and pro-active the minute it begun. Although the coronavirus scourge is different from the cyclone, we can however draw some parallels. There is evidence which point to the fact that the virus is spreading, just like there was evidence beforehand that the cyclone was going to hit parts of Mozambique, Malawi and Zimbabwe. However, businesses and authorities did not do enough to minimize the effect of the cyclone on citizens and businesses until it was too late. I believe that in order for us to do anything about this current situation, we first have to accept that it is real and realize that we need to act NOW. Coronavirus is not some distant or foreign fairytale, the facts are there for all to see; some have even experienced it way too close for comfort. At this point, however, I urge you to guard yourself against misinformation that may circulate, especially on social media platforms. Validate the information that you receive, use credible sources and refrain from being an agent of spreading misinformation yourself.

Image Source: UNICEF- Cyclone Idai

As a business, communicate, with utmost clarity, with your employees about any course of action that you are taking, whether in obeying a government directive or implementing your own initiative/s. This may include plans to have some or all of your employees work from home or even to increase shifts. Empathize with them while you are at it. Earlier on in the week, I saw an online news agency report that a large corporate made an announcement that “all non-essential personnel have been asked not to report for work”. ‘Non-essential’. What is the connotation behind that expression? Maintain respect for each other in all communication, both within your organization and to the outside world. Communication is two-way. Listen to your employees as well, they may just provide you with the key to your survival. Remember, no-one has monopoly of knowledge. Share any useful hygiene tips with your employees. DO NOT TAKE THINGS FOR GRANTED and assume that everyone is in the know of how to minimize contracting the virus. I believe there is nothing wrong with repeating lifesaving information. It can never be over-emphasized. If your employees are going to continue coming to the office, then be proactive as the employer. Provide the necessary hygienic supplies at the office and protect your crucial resource…your employees.

2. Cash. This is one of the key elements that is going to keep you afloat or sink you. Revenue is going to be affected, therefore I urge you to spend money wisely. What projects can you put on hold or cancel completely? How do you plan to improve your cash position? Follow up on all unpaid invoices to boost your cash inflows. This is not going to be easy because your customers’ revenue flows may also be as affected as yours, but let that not be a deterrent for you. It’s survival mode now, time to use your persuasion super powers.

Lines of credit. Time for some crucial conversations with your suppliers. Engage them for extended credit terms, both for what has already been supplied and for what has not been paid for, or any new supplies that you may need. Healthy relationships based on trust, respect and mutual benefit with your stakeholders are critical now more than ever. Reach out to your bankers for a possible short term line of credit to cover you during this period.

3. Market. The time to show your clients how much they really mean to you is now. Reach out to your customers, show genuine concern for their health above all else. Offer exceptional after-sales service, offer advice where needed and assure them of your continued support and loyalty. 

Invoke your critical thinking skills and take a look at your market holistically. How has or is your market being affected by the plague? How sustainable is your current niche in the short to medium term under the current situation? What if this period lasts longer than expected? What then? Is it time to look for additional markets to serve? Is it time to look for additional skills and enter a different market all together? And so on and so forth. Start having these discussions now before it becomes too late and you remain only with a Hobson’s choice, to fold.

Image Source: Canva.com

4. Contracts. Take a closer look at your existing contracts. Look for clauses that may impact your business in times like these. If you need expert opinion, engage some lawyers and make sure you are protected. Reach out to the other part and negotiate. Don’t assume that because the coronavirus is affecting businesses and economies, the other part to the contract knows how much you have been affected and will just turn a blind eye. Take the initiative and engage them.

Dismantle the box. Don’t be limited by a building. Take advantage of the age of technology and work from home where possible. When you are at home, don’t just sit and become a ‘keyboard warrior’ jumping from one social media platform to the next. Notwithstanding the fact that economies are shrinking by the day, innovate, look for new ways of being productive. Encourage your team members to do the same.

There is no ‘manna’ from heaven. This is the opportunity to show that you are a survivor. Dig dip, you are more capable than you give yourself credit for. There are more suggestions out there, let’s brainstorm and share. The more you share, the more you learn. This too shall pass. If we put our heads together, we can and will survive together.

All the best in your businesses and STAY SAFE, the world needs you.

Grant Mudyiwa

[email protected]