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How Some Small Businesses Thrived During the Pandemic
It’s unfortunate that several businesses decided to close due to the pandemic. Given the restrictions in movement, most people decided to stay home. Several businesses got destroyed due to the lack of customers. The tourism industry is virtually inexistent. Restaurants couldn’t have dine-in services. Many people tried to save money due to financial instability. Despite these problems, some small businesses manage to thrive. These are the reasons behind their success.
The move to online operations
Once it became clear that some customers couldn’t visit local stores, these businesses immediately went online. Restaurants offered takeaway services that people could order through online apps. Retail stores offered their products online and even offered fast shipment options. Since everything happens online, there's no need for people to leave their homes. It allowed businesses to continue making money even if they couldn't have in-store customers.
Focused on market research
Some small businesses used the opportunity to focus on market research. They spent the first few months understanding the behaviour of their target audience. They knew that it would be difficult for them to compete given the current economy. However, instead of dwelling on the problems, they decided to focus on market research first. Hence, they became more competitive. They knew how to get a bigger share of the pie even against established businesses.
Utilized government aid
Some small businesses were eligible for government aid. Many business owners took it as an opportunity to keep the business going. For small business owners who already spent a lot of money, keeping things going was difficult. Without government support, it would be impossible for them to survive. They didn't only use that amount to support employees but also spent money on office operations. The goal was to keep everything running. Others also took it as a chance to prepare the offices once everything gets back to normal. They looked for better suppliers and even invested in quality office stationery online. The government aid might not be enough, but some businesses managed to make the most out of it.
Some companies had plans to expand their operations. However, it became clear that 2020 was a terrible year to do it. Therefore, they decided to suspend those plans. They downsized the operations and reduced potential profits. Despite that, these businesses didn't have to spend a lot on overhead expenses. Therefore, they managed to have a positive net profit. It was a smart idea since expanding operations doesn’t necessarily have to happen quickly. Some small business owners were patient enough.
The point is that even if 2020 was generally a terrible year, some businesses didn’t fail. With smart strategies and plans, they survived. It also means that even if there will be more health and economic problems in the future, these companies will most likely survive. 2020 was probably the worst year for businesses. It’s time to move on from it and change strategies moving forward. However, it’s important to learn from what happened and prevent the same mistakes from happening again.
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