In the United Kingdom, any business with less than 250 employees is classified as a small and medium-sized enterprise (SME). Businesses with 0-9 employees are called micro-businesses.
Research has shown that most small businesses do not survive past their fifth year of operation. However, as you want your business to survive, here are six tips to ensure that it does.
Rebecca Minkoff says that small businesses should not consider their services as essential, as this likely creates a rigid mindset instead of one that seeks change. Instead, go with the flow. And if your niche is dying out on the market, expand to other areas.
The COVID-19 pandemic has prompted many businesses to make hand sanitizers, face masks and cleaning products, for example. Restaurants and fast foods have had to start delivery services instead of just relying on taking out services or people eating in.
In essence, they had to adapt to market changes. As a small business, flexibility is key for survival.
Social media, websites and online shops are essential tools for getting your business online in 2020. Online tools have created a way for businesses to make sales without physical shops.
It allows you to create awareness about your business, market your products and services, reach new customers and engage with the old ones without physical contact.
Social media allows you to have almost instantaneous contact with customers, and customer engagement helps to build loyalty.
Understanding what your customers want and catering to their needs is a good way to survive in a competitive market. Ask for reviews and feedback on products and services, both new and old.
Feedback helps you identify where you are doing fine and where you need to improve. You can also find out what people really think about your business through online tools such as Google Alerts. Alerts let you know if people are pleased or displeased with your service.
Good research skills can help small businesses stay ahead and keep up with market trends. Use market data and statistics to guide business decisions.
Keep an eye on key performance indicators (KPIs) that alert you when things improve or worsen in your business. This ensures that you are making changes that will directly impact your sales, business growth and continuity.
Know your competitors
Always have an idea of what your competitors are doing, their pricing, their quality, their marketing strategies and so on. This knowledge will help you to stay afloat as you can use it to modify your own marketing or pricing strategies.
Being a small business is hard, but we believe these six things can help you survive. With a lot of hard work and some strategic planning, your small business can and will survive in 2020. This year has been a rollercoaster for the economy; however, it is possible to recover as long as you are taking the necessary steps to ensure a bright future for your small business.