Small Business and the “New” Normal

Small Business & the "New" Normal

Small business owners are anxious to leave 2020 behind and return to normal. My small business client discussions have focused on what that “new” normal will look like. Consumers have become accustomed to and have embraced many of the mechanisms that were put in place to remain in business during 2020. It may be very hard to return back to your normal moving forward. Below are some considerations to make about what your “new” normal will look like:

 

Work from Home – Small business owners have learned that work can be done efficiently offsite, with reduced overhead costs. Employees are comfortable with the convenience of WFH. Perhaps a dedicated office space is no longer necessary for your business to operate. If a wholly WFH environment will not function for you, perhaps joining a co-working space could be a less costly option. An example are co-working spaces can be paid for annually, monthly, and even, hourly. Most spaces provide conference rooms, private rooms for working or meeting with customers, and shared copier/printer equipment.

 Virtual Meetings - Small business owners that primarily meet face to face with customers have had to move to virtual platforms, such as Zoom, MS Teams, Google Hangouts, and Facebook live. By utilizing virtual platforms, a small business can still connect with their customers, often more efficiently and cost effectively. For example, some of my fitness clients have incorporated virtual training sessions as part of their product package. The owners have discovered their customers like having the option and convenience of virtual sessions.

 Touchless Customer Contact – Small business owners in food service quickly determined that if they could not serve customers due to shutdowns, they were doomed. By embracing touchless customer contact using delivery services, curbside pickup and outdoor dining these savvy small business owners were able to continue to offer their services to customers. An example of this is a local restaurant who replaced their front door with a slot for payment, and a “cubby” to place customers takeout orders in. The convenience and efficiency of touchless service will remain desirable to your customers.

 eCommerce – Small business owners in retail determined that they had to be on-line to compete with large national brands.  To do this, some set up full-service eCommerce site, which can be quite expensive. Others utilized free platforms such as Instagram and Facebook to showcase and sell their wares. An example is a boutique client. Sales dropped; and they had just received all their inventory for the busy season. Utilizing Facebook Live, they were able to have a “fashion show” and take orders remotely.  Customers will continue to expect an eCommerce option.

 Marketing - Small business owners who had relied on word of mouth (WOM) to market their business were faced with the realization that they needed to strategically market their products and services in a new way. Some businesses updated their website and promoted social media content on a more frequent basis. Others had to choose the correct platform to reach their target audience. Google ad words, Google my business, Facebook targeted posts and Instagram stories are some cost-effective options for educating customers about your offerings. A clothing retailer client developed Instagram Stories to reach their target audience with great success! Customers preferred the ease and anonymity of this type of marketing.  You will find it more important than ever to adopt a marketing strategy (and budget) for your business.

 Buy Local Movement - Small business owners are 99.6% of all Georgia business and employee 43% of its citizens. Small business owners, and employees, are your family, friends, and neighbors. With business closing, a slowdown in shipping and lack of product supply, it became quickly apparent how important local food producers, restaurants, and retailers are for the economy. A bookstore client that consistently promoted that they were a local business  were able to keep their employees, generate decent sales, and become a virtual sensation! Continue to promote your business as local and connect with your community.

 Lender relationships -  Small business owners learned how important a relationship is with a lender. Banks were swamped with loan requests and in some circumstances, only the businesses that had existing relationships could quickly access the financing they needed to survive. An example of this are several clients who banked with large national banks for years yet did not have a relationship with a commercial lender. Often, reaching out to community banks and having a conversation with the lender was a solution.  Nurture lender relationships by having a conversation regularly about how your business is performing. This could be very helpful to you and the future of your business.

 Laura D. Katz, MBA, is the Area Director of the UGA SBDC - Athens Center. Ms. Katz is a national speaker on the topic of Marketing & Business Development. You can follow her on LinkedIn and Twitter.