The Covid-19 pandemic caught the entire world by surprise. Every person and organization, from schools and churches to major corporations and small businesses, has been impacted by this global catastrophe.
However, despite the trials and challenges posed by the pandemic, there are certain lessons to be learned from a tragic event like this one, especially for business owners, small and large.
Here are the five business lessons I learned over the last several months as I, too, navigated safeguarding my business from the Covid-19 challenges.
Lesson 1: Put your client at the forefront of your communication
Great communication is a key component of any solid customer relationship. It’s important your customers know you are there for them, particularly during times of crisis. You might consider increasing the frequency of your communications to stay on their radar, offer your support, or provide helpful, relevant information.
How have your customer’s needs changed? You can deliver a superior customer experience by anticipating their needs and ensuring they have information when they need it, or perhaps before they even realise, they need it. This helps distinguish a good customer experience from great customer experience. By being one step ahead and anticipating their needs, you’re helping ensure your customer base will remain intact for the long term.
Lesson 2: Build a safety net
Many businesses have been hit hard financially by Covid-19. Fear of the pandemic has kept consumers at home and forced companies to send employees home for a prolonged period of time. Some businesses have had to close their doors due to public health regulations. Sadly, many of those will never reopen while others will struggle for a long time to get back on their feet. Why? Because most businesses don’t have a cash cushion and can’t sustain an extended economic downturn.
In my experience, it’s important to build a cash cushion for your business that is equal to 12 months of your monthly overhead. This is perhaps one of the most difficult things to do, so start small. Set a goal to reach 1 months’ worth of overhead first; next, work toward 3 months, then 6 months and finally, 12 months. Businesses with a large cash cushion during a global crisis will not only survive — they will thrive. As other companies struggle financially during times like this, those with a cash cushion will be able to continue their operation.
Lesson 3: if you haven’t yet, make digital transformation a priority
In 2020 we all learned the importance of technology as it was relied on more than ever for the business community to conduct work. The pandemic accelerated the adoption of cloud-based communications, collaboration, and productivity tools. Most of us ended up using technology that was already available to us but previously rejected or ignored because we had no time to stop and learn.
Your company may now be digitized in certain areas, but are you making the most of all the tech solutions available? The current context offers the right nudge to re-evaluate and audit your tech stack and see where your company could be improving.
Lesson 4: Always be growing
My biggest lesson from the pandemic is never to rest on previous successes and always be in expansion mode. By expanding, not only are you gaining market share, but you’re also protecting against downside risk if there is a downturn in the market. For example, let’s say you’re growing your business 50% year after year. When a virus or a recession hits and you lose 50% of your business, you’re now back to even. Compare this to a stagnant business coasting along: a 50% reduction would wipe them out.
Lesson 5: Compassion and patience are always necessary
I believe most of us have learned how essential it is to be aware of the many challenges our employees, co-workers and customers are facing in their lives. Everyone is dealing with the stresses of this strange season differently, and it is critical to remember that almost everyone is surrounded by shadows you cannot see through Zoom or hear through a phone call. However, these shadows are very real to them and likely impacting their worldview massively.
This is a great time for extra compassion and patience. And the remarkable thing is that this is in no way unique to these times. I find that a valuable thing to reflect upon, and I hope that those of us reminded of that this year go forward with more compassion and patience.