In April, about 2% of all small businesses had shut down for good. Now that number could be up to 20%.
For those still hanging on, this is a good time to take stock of your business and determine if you should make some changes…maybe dramatic changes.
The success stories we have heard about businesses making changes have been mostly manufacturers switching their product lines to personal protective equipment that is desperately needed.
But not these same small manufacturers have to decide if they should invest in more equipment for these new products or return to their normal business when the pandemic ends.
Some of these small business owners have said that in order to make the change to PPEs permanent, the federal government will have to either give them long-term contracts or subsidies because foreign manufacturers will surely start producing the same equipment cheaper.
Have you modified your business plan to address all the changes we have seen in government rules and consumer needs?
Mike Ungar is a Certified FocalPoint Business Coach with 40 years of management experience. He shared two examples of how his clients are moving forward:
- An events marketing business organized in-person events for clients to highlight the business’s capabilities to prospective customers. Rather than wait for things to return to normal, this company is now offering to organize virtual events for their clients.
- A small machine shop has realized that it had little to differentiate itself from its competitors. The downturn in the economy made it clear a change was necessary. This business is in the process of identifying and focusing on its strengths and rebranding itself to focus on markets with greater profit opportunity.
What is your assessment for the future of your business?
Stay the course or change course.
Mr. Ungar says that there are 6 steps if you are considering a change—define your business, know your customers, study your competition, identify areas of excellence, write your vision/mission statement, and develop a 1-page business plan.
If this sounds like what you might have gone through when you first opened your business, you are correct. But it should also be the process if you are looking to change your business.
Business coaches like Mr. Ungar are there to help.
You can also use your local Small Business Development Center, SCORE, Women’s Business Center or Minority Business Development Agency Business Center.