With the recent approval of two Covid-19 vaccinations, and a second economic relief package from Congress, small businesses such as Children’s Music Studios can begin to share the hope that the economy will start to pick back up in 2021. Many small business owners have not fared well during the crisis. Some 30% to 40% of those most affected by social distancing have gone inactive since February. Typically this time of year, small business owners are setting goals and making plans for growth in the coming year. The need to plan and adjust is just as important now as ever, but the approach and mental process is different in a flagging economy.
Tips for rebuilding your small business after Covid-19
- Understand your prospective customers perception – Consumers are extremely cautious coming out of an economic upheaval. If they believe money is going to be tight (even if they have it), they are going to behave as such. Your message to them should be that your services are very important and a good value. It is also a good time to focus on keeping quality and customer satisfaction high.
- Take a hard look at your finances – It’s important to monitor your cash flow very carefully and forecast it at least three months in advance. Separate the essential expenditures from those that can wait, and work with creditors to spread or reduce payments while you get back on your feet. If your cash flow projection means that you will need to borrow in order to stay afloat, identify financial resources to help you recover.
- Review and follow official guidance – While the emerging vaccines give us great anticipation for a post-Covid society, experts warn that the danger is far from over. Read and make sure you understand local, state, and federal guidelines, not just in order to stay within compliance, but to also provide some peace of mind for potential customers.
- Put together a marketing plan – You will not be able to market the exact same way as our economy comes limping out of the pandemic. Start by letting people know that you are back to business and offer them something of value to show you are in this together. We have previously explored how to make the best use of existing marketing resources with little additional cost. However, while many companies cut back on marketing in an economic downturn, savvy business owners understand it can be a good opportunity to capture market share with smart investment.
- Develop a time line and contingency plan – When resources are scarce, a time line can help you to understand what actions (and expenses) should be addressed first. Rebuilding a business is just that – a step-by-step building process with contingencies. Knowing how and when to address priorities helps to balance resources. Finally, be better prepared for the next time an unexpected downturn happens – and it will. Take what you have learned from this experience and prepare a well thought out plan for a better reaction to loss in customers and revenue.
While it is unfortunate that many small businesses across the world will never be able to open their doors again due to this pandemic, studio owners of children’s music programs can begin to make concrete plans on how to recover stronger than ever. And when the next downturn happens, that valuable experience will make them better prepared to endure it.
Musikgarten is the leader in early childhood music education — for children and teachers, that offers a complete multi-year educational program that helps infants, toddlers, and children develop a deep love of music and the ability to express it. For more about Musikgarten and its offerings, go to https://www.musikgarten.org/.