Small Business Owners: 9 Tips to Survive the Coronavirus
Back in 2007 I had the job of my dreams: a reporter at a small weekly newspaper. I was writing 3-5 stories a week, laying out the paper, and working with advertisers. Like most small organizations, it was all hands-on deck as I learned everything I could about publishing.
Then the newspaper industry died. I no longer had a job.
I was very suddenly, and without much experience or preparation, a freelance writer. I had never planned on being one – or any kind of business owner – and suddenly was thrust into it out of pure survival. Because not even waitressing (or my parents) were helping with the bills. I don’t know if you’ve heard, but people don’t go into writing for the money. Freelancing is even harder.
But I survived.
Barely, but here I am, successfully contracting and consulting 10+ years later. There’s been a brief time or two I tried full-time, but nothing really stuck. I guess I really was meant to be a business owner.
Now that the COVID-19 is putting everyone into quarantine, I know a lot of small businesses and entrepreneurs that are going to take a hit. I’ve gathered all my best tips on how I survived the recession and the years of being low-income while building back up. I hope this helps some of you find your way in this trying time.
Tip #1: Cancel Software Subscriptions
While this seems like a no brainer, it’s actually quite hard to do.
I’m currently writing in Microsoft Word, but I could easily be doing it in Google Docs instead. Same with Excel and PowerPoint; they both have their Google doppelgangers.
If you don’t have to use a specific software for client, then try looking for cheaper or free options that provide the same abilities. They’ll have a slight learning curve, but then you’ll have the extra skillset on your resume AND you’ll be saving money.
If you can’t end them, switch to monthly (or pause if you can). That way if you’re not using them for projects, you’re not paying for it.
Use free trials.
For artists/designers, it’s hard to live without an Adobe account, but there are free trials. Not that I can condone it, but I heard you can even do it multiple times with different emails.
Tip #2: Better Credit Financing
Research what options are available with your current credit score. Call all your credit cards and loan providers to see if you can get a better interest rate or limit increase. Or maybe open a new one in case of emergencies.*
You may not have to use them, but it’s better to do it now when credit is good and the debt ratio is lower. It’s much harder to increase your limit when you are close to hitting your credit line. And better interest rates can save you hundreds in just a few months.
*NOTE: Do not open one to spend regularly. It’s only as needed. I made the mistake of using one for everything and I’m still paying it off. It’s really there in case of emergencies or to build credit score for other potential financial assistance.
School Loans
Before you even feel the squeeze, put them in deferment or forbearance. Do deferment if you can (approval is harder); with forbearance you still need to pay the interest. If you’re anything like me, the savings add up quickly.
Small Business Loans (SBA)
If you don’t already have one, I’d suggest starting the process now. It can take 2-3 months to get approved, but if you are able to make it that long, this could help you hold over until business picks up again. Or it can help with tip #4 , #5, and #7.
There is also disaster relief SBA available specifically for those affected by COVID-19.
Tip #3: You Know what, Cancel All Subscriptions
This is probably my most controversial tip, as it can quickly cause insanity, especially if there are kids in the house.
But take a hard look at Hulu, Netflix, Spotify, Audible. . . do you really need them? Most of them have a free version (or competitors have free versions) that make you watch/listen to some ads in return for using the service. Watching an ad every now and then isn’t bad if you’re saving $50/month (they really do add up).
Personally, my guilty pleasure are digital subscriptions to newspapers, so I’m going to narrow it down to just one. Every little bit helps, especially the longer this goes on.
And you really don’t need that fancy coworking space. Libraries (when they are available) have most of that stuff for free (i.e. meeting rooms). Plus, during quarantine, you’re not going to be there very often anyways.
I’m hesitant to say cancel networking subscriptions or professional memberships. If they’ve been working for you, keep them. But now is definitely a time to consider if your $200 membership fee is actually helping your business.
Tip #4: Find a Community/Barter
While this is good practice at any time, I suggest partnering up with people whose businesses are tangential to you and share your services.
- Have a salon? Work with specific makeup artist who can recommend you for events.
- Are you a copywriter? Have a designer you can recommend for the print/digital design.
- Do you build software? Pair with a UX designer, so if she is designing something, she can recommend you build it.
You may also want to barter your services. Say you do want to try a new revenue, but you need help editing videos. See if there is another small business who can edit your videos and in return you can offer one of your services instead of paying cash for it.
In the end, you both save money and help ease financial burdens.
Tip 1-3 Do now. Even if it’s a short-term, coming back from a financial slump can make small problems seem much worse in the future.
Tip #5: Streamline and Simplify Processes
Most small business owners and startups have inefficiencies. When you first start your business, you get a ton of issues and decisions coming at you fast. When trying to find solutions – often without the help of experts – you pick the easiest (or cheapest) one to implement.
Now is the perfect time to look through all of your processes and systems – especially if you have employees. Talk to your employees and listen to ideas on how you can make their lives easier. Let them share the responsibility and help research potential fixes. In the end, your business will be more efficient and productive. (It’s also a perfect time to try all those free trials.)
You will probably be surprised to find there were five different ways an action was being completed because not everyone had all the information or skills needed. You may find your software didn’t scale well and there’s something better out there. As a sole proprietor, you may need to address the different client intake forms and combine them to one (this is me).
Do not forget to document it
When there is a new way of doing things, ensure that everyone knows, has the right items needed to complete it, and that training and documents are accessible for all your current and future employees.
Tip #6: Time for Projects/Refresh
If you truly feel this is temporary and you’ve already made moves to ensure you’ll be around for a while, this is the perfect time to complete some projects that have been on the backburner as you’ve been dealing with major clients. It’s also great time to look at the return on investment (ROI) for projects you are currently doing.
This could mean a couple different things:
- New website or new redesign (this should be done every 3-5 years).
- New branding/messaging (ensure you are connecting with the audiences you want to).
- Launch new service and figure out how to integrate it into your current business (i.e. how will you support customers once it’s live).
- Heuristic/Project Analysis: find out what products or services are working or not (high or low ROI).
- Plan how to focus efforts on those with the biggest returns or how to streamline to increase returns on others.
TIP #7: Learn/Sell New skills
When I worked at the newspaper, I would also lay out the front of paper. It was simple enough: copy, images, advertisements. Give them space to breathe. Stay within the margins.
Once I was out on my own, I continued practicing with layout and design. I read some blogs/articles, learned more about how advertisements catch people’s eyes, and further explored the difference between print and digital. I soon was able to do a decent job at creating print and digital designs as well as copy.
I then had people pay me to write copy AND lay out the documents (i.e. brochures, flyers, basic advertisements).
Eventually that became my selling point: I was someone who truly understood how copy and design works together to tell the best story and create the best customer experience.
Tip #8: Lower Prices
This is going to suck, but as time goes on, the situation looks like this:
- Everyone’s a little poorer.
- People need money to pay bills, so they lower prices to beat out competitors.
- Everyone races to the bottom to get more clients, because they need money to pay the bills.
- Everyone gets more poor.
It’s an awful cycle, but I saw it happen firsthand during the recession.
Don’t rush to the bottom
Your skills and services have value. Take a look at your finances and decide how low you can go for the amount of work you’re getting. Decrease your prices slowly through different areas only when you have to (i.e. can’t find work).
- Offer discounts when current clients say the may not be able to keep your services.
- Offer discounts for new clients.
- Offer discounts for service bundling/packages.
You may be working more for less, but hopefully you come out on the other side as a survivor.
Tip #9: Believe in Yourself
Okay, so this is not a financial tip, but it’s one that we need to hear.
It’s going to be hard, but starting a business is never easy.
A lot of us became an entrepreneur because we believed we could do something better. We could make a difference in people’s lives. We wanted to follow a passion. And we worked hard to make it happen.
We are a scrappy set of people. We are resourceful. And boy are we stubborn. We will literally work 80 hours a week just so we don’t have a boss making us work 40 hours a week.
You will be okay. It may take awhile, but we will be okay.
We believe in you and will help you any way we can to make it through this. Because if #YouSurviveWeSurvive.
Good luck. And don’t forget to wash your hands.