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COVID-19: The Small Business Playbook For The New Distance Economy
How Coronavirus (COVID-19) is changing the rules of engagement for businesses big and small.
Updated on April 5, 2020
Photo by Igor Starkov from Pexels
The Coronavirus (COVID-19) pandemic is a watershed moment for the global economy.
And as the United States takes drastic action to curb the spread of COVID-19, tough decisions are being made in real time by businesses big and small.
While bars, restaurants, retailers, hotels, airlines, and gyms are feeling the immediate effects of COVID-19, it’s clear that every business will need a plan to weather the storm.
From operational changes like telecommuting to fundamental shifts in business models, how can small businesses navigate COVID-19 and the dynamics of the new distance economy?
The guidelines to manage COVID-19 have wide-ranging effects.
On March 15, the President issued guidelines to slow the spread of COVID-19.
On March 27, the President passed into law the CARES Act, which contains billions of dollars in relief for workers and small businesses across the United States.
While more guidelines will be enacted as the COVID-19 pandemic develops, below are a few of the practical tips Americans are asked to pursue during this period:
Practicing good hygiene
Working or engaging in schooling from home, if possible
Avoiding social gatherings in groups of more than 10 people
Limiting discretionary travel, shopping trips, or social visits
Avoiding eating or drinking at bars, and, food courts, and instead leveraging drive-thru, take out, and delivery options
How will these effect your business and the livelihood of your customers?
Assess fundamental needs.
Since most people will be staying at home for extended periods of time, a few key needs will need to be satisfied to simply maintain “business as usual.” The businesses that will succeed and come out stronger will have a clear vision for navigating these fundamental needs.
Constant Communication
Consumers, employees, partners, and vendors need to know the plan.
Given the new COVID-19 guidelines, how does my favorite store, shop, or retailer fall into the mix?
Should I go? Should I stay away?
In any dynamic situation, communication is critical.
Just knowing you are open is important and should not be taken for granted.
The Means of Distribution
The means of distribution are in flux.
As an example, everyone needs food, but with social distancing in place what are the options? Delivery? Take Out?
The first movers in food — restaurants, bars, grocers — will set the tone and develop the primary distribution channels for the new distance economy.
But how will my favorite concert venue or health club deliver goods and services?
As an example, airlines are now redeploying their planes to support freight rather shipments.
For small businesses, this may mean cultivating new partnerships, while others may pause existing partnerships until more clarity arrives.
Where does your business fall in the new value chain, and how are you developing new means of distribution to ensure viability in the new distance economy?
Surprise and Delight
For businesses fortunate enough to stay open and operational, consumers will continue to seek comparable versions of their regularly expected services.
As an example, restaurants will pivot to carry-out and delivery only. Gyms will offer virtual classes. And real estate brokers will offer virtual tours of homes for sale.
While consumers will reward businesses that will go the extra mile during this tough time to continue business as usual, there is opportunity for new, innovative, and unique offerings.
Once you have made an assessment as to whether you can simply survive, how will your small business remain relevant and provide value in new and exciting ways during this time?
Practical ways to engage in the distance economy.
So what are the practical ways small businesses can adapt to the new distance economy?
Teleconferencing
Teleconferencing services such as Zoom and FaceTime lie at the heart of the new distance economy and serve as the primary platform that enables social distancing at scale.
For the less tech savvy, take the time to acclimate yourself to these new technologies in a low-stakes manner, such as a FaceTime chat with a friend or family member.
Explore the dynamics of teleconferencing and how you can apply these tools to your business in lieu of in person meetings, onsite visits, and physical engagements.
Social Media
As the means of physical distribution become limited to essential services, certain forms of media — such as print and retail and OOH — becomes less relevant.
Take an inventory of all of the digital channels available to ensure you have the right systems in place and a content strategy for ongoing engagement with consumers, partners, and vendors.
Is your website up to date, with a landing page or blog post addressing COVID-19 and how it effects your business?
Have you sent an email to your customers, your vendors, and your employees so they are clear about the new rules of engagement?
Have you shared your updates on your social media pages, including Facebook and Instagram and replied to all comments in a timely manner to address long tail requests and questions?
One of the best ways to reach customers online is through a Google My Business page, which allow small businesses to update hours of operation and to create messaging for folks searching for your business.
On NextDoor, a hyper-local social network, real people in your neighborhood are sharing important information and asking questions that may be relevant to your business. If you don’t have a profile for your small business, get on it.
Programmatic Advertising
While advertising is often the first expense to cut in times of economic turmoil, allocating funds to programmatic means of communication offers a way to keep their customers engaged, up to date, and in the know as they eventually move from your owned media channels (Facebook, Website, etc.) to other destinations around the web.
By retargeting your customer list, your fans, and people near your retail locations, as an example, small businesses can stay top of mind across the web while also giving you a way to provide offers, services, and messaging in real time.
It’s worth noting that companies like Google are offering small businesses massive grants to help subsidize advertising.
Software as a Service
For small businesses that do not currently leverage SaaS offerings for things like payroll and customer service, the opportunity to engage has never been more urgent.
For small businesses that rely on SaaS offerings to power core elements of your operation, vendors may be more willing to renegotiate payment terms during this period.