The NFIB Research Center has reported that an overwhelming majority of small businesses have been adversely affected by the outbreak of coronavirus, with nearly 7 out of 10 owners feeling very anxious about its consequences for their operations.
As consumers, we can take deliberate steps to back up our local small business owners and help sustain the economy, even if it stumbles from time to time.
This piece will discuss the most significant effects on the international economy, with some focused on ecommerce, and strategies to make use of your purchasing power to uphold small and local establishments.
COVID-19 Affecting Small and Large Businesses
International officials are attempting to reconcile public health anxieties with considerations for the economy, leading to dramatic changes in the worldwide stock market in response to the vagueness.
Moody’s Analytics and IHS Markit have reduced their projections for the global economy due to financial instability.
In an effort to stabilize the stock market and lessen the economic impact, the United States has enacted a $2 trillion relief package which will provide some financial help to those affected.
The allotted funds will be meted out among:
- Individuals, in the form of cash payments and expanded unemployment benefits,
- Corporations — including airlines suffering due to travel bans,
- Small business loans,
- State and local governments, and
- Public health.
Marketwatch reported that there will be $350 billion in loans available to small businesses, the loan amount be covered by the Guaranteed Loan Program, and the loan amount will be able to be forgiven if the business remains committed to keeping all of their employees aboard during this challenging time.
Amidst all the fluctuations, there are two things we know so far:
- The impact on each individual business varies between industries and even from business to business, and
- Consumers are buying less — and that’s expected; in the face of uncertainty and economic disruption, consumer confidence declines, and sales follow.
The impact on industries varies.
The tourism sector has been especially affected by the crisis, and the cost of oil has decreased. The automobile and clothing industries have also suffered losses.
Despite this, grocery shopping has been on the rise — people are choosing to purchase their items online instead of visiting grocery stores that may be overcrowded and not have the items they need in stock. A similar trend is emerging with people purchasing wine and other alcoholic beverages online.
For example, on Monday, March 16th, Drizly, the delivery platform for alcoholic beverages, stated that their overall annual sales had increased by five times compared to the same period last year.
Customers are buying less.
Several large department stores that have put their emphasis on ecommerce since shops have been closed to comply with social distancing guidelines are not experiencing the same amount of sales as usual on their sites. Nordstrom revealed a slower pace of demand and Macy’s has shed a majority of its 125,000 staff.
The shuttering of physical stores has resulted in an increase in individuals who prefer to shop online, however, people are now opting for more essential goods rather than items of luxury, and are thus spending less with their credit cards.
Why Support Small Businesses?
An investigation published at the end of 2018 highlighted that small businesses contribute 44% of overall financial activity in the United States. Buying from mom-and-pop shops doesn’t just help them make a living, it keeps the variety of products that sets each area apart alive.
Community support.
Small businesses located in a certain area are extremely beneficial to the economy, and they also become an integral part of its lifestyle. Basically, backing local businesses is a way to promote community growth and small business owners can, in turn, contribute to their communities too with volunteer work and celebrations.
Economic impact.
Local stores can bring employment to the area in addition to providing a distinct flavor to the neighborhood, which will encourage more people to visit and make the locale more appealing as a place to live.
Personalized customer service.
Purchasing from small businesses is wonderful for getting personalized attention — sometimes it can be from people who recognize your name. Small business owners often put an emphasis on constructing connections with their consumers and discovering what their desires and preferences are.
Unique product offerings.
Local businesses have the chance to target a more particular audience than larger retailers or chain stores. For something one-of-a-kind or not widely available, try shopping at a boutique.
Competition.
When there is a great number of small businesses, then it creates a greater amount of competition — thus helping to lower prices and lead to more innovation.
10 Ways to Support Small Businesses
In order to meet customers’ essential requirements and reduce the burden on the supply chain, Amazon has announced that it will no longer be able to fulfill orders for third-party sellers for non-essential items such as clothing and electrical in the current month.
Instead of utilizing its efforts and space for any item, the business is concentrating on vital items such as food, supplies for cleaning, medical products, dog food, and diapers. The disruption of FBA has created an opportunity for other ecommerce companies to take over the market.
This may take away a bit of the ease enjoyed by certain buyers, but at the same time, it’s providing a chance to help out with a section of the economy that has already suffered a lot of hardship due to COVID-19 – small businesses.
Purchase apparel from your favorite ecommerce site.
As previously discussed, the clothing sector has generally observed a large sinking in the number of people visiting and items sold. If you desire a bit of retail healing, your buying on the web – particularly from small businesses – could be of considerable aid to the economy.
Sign up for a subscription service.
Subscription plans have been more and more prevalent for a long time, and they are a fantastic way to boost small businesses. An example of this type of subscription box would be FabFitFun or Causebox, which typically provide products from small businesses and makers who are not very well known, and the public recognition they receive from this is invaluable.
Buy books from online stores.
Many people still rely on Amazon for buying books. After all, that’s how it started! Use your additional time indoors to get a great read from a less popular e-commerce site rather than buying supplies from Amazon.
Volunteer On Behalf of Your Company
If you are not part of a vulnerable population, contemplate going out and doing some practical, physical volunteer work on behalf of your organization.
Meal on Wheels anticipates that the amount of individuals who require their food delivery program will climb and is actively trying to find volunteers.
Doing errands on behalf of vulnerable people in your area is an option, such as going to the store or collecting medicine.
Put up a message on a community Facebook page, or if you reside in an apartment building, be sure to lend a hand to your close neighbors by placing a note at the entrance.
If the elements outside frighten you, there’s still a way for you to take part in the production of homemade masks that do not have medical uses. All you need is a sewing machine!
It is not hard to create them, and more and more hospitals are asking for them in order to increase the lifespan of the already scarce N95 masks.
Take to Social Media & Amplify Messages
Instead of spending your days aimlessly scrolling on social media, consciously make an effort to follow and promote the posts of businesses that you want to support.
Create a Twitter List in order to sustain this activity over time.
Increase the reach of communications from small businesses with little effort, offering them the best advertising available – verbally sharing information.
Share with your followers an awesome promotional offer that the business is running to increase its sales.
If you have a devoted group of supporters, your social media endorsements can further lend validity to the business you are advocating for.
Choose Credits Over Refunds
If the coronavirus pandemic disables a business from supplying the product or service you ordered, pick a credit rather than a refund in as many cases as possible.
Due to the financial strain of the coronavirus pandemic on small business owners and entrepreneurs, this differentiation could determine whether or not they pay their rent.
Order (More) Take Out & Delivery
During the quarantine period, this could be your opportunity to make your own meals, but at the same time, do not overlook the difficult circumstances that are being faced by your favorite restaurants.
Typically, establishments do not generate a significant profit from take-out orders.
Nevertheless, with eating in restaurants mostly forbidden in numerous locations, getting food to go and having it delivered is now the only revenue that restaurants are able to earn.
If you buy items through the internet, you can help to provide a job for a delivery driver for Grubhub or DoorDash.
Be sure to be generous with your tips; these individuals are on the front to tackle this perilous illness.
A website has been developed by Toast, a well-liked Point-of-Sale (POS) system predominantly used in the food service industry, to make it simpler to order take-out and deliver items.
You can support your favorite restaurants by adding them to Rally for Restaurants and the organization will even provide a donation to other businesses that are supplying food to the local area.
Buy Credits or Gift Certificates to Use Later
If you are currently in quarantine or the business is closed, think about buying credits or gift cards that you can use when the situation improves.
This influx of money will make a big difference during times of economic difficulty, and when it’s safe, you can utilize your purchases.
Bright Planning, a public relations and marketing agency based in Asheville, put together a website, named ‘Asheville Strong’, for customers to look up small local businesses with gift card services.
Think about using the abilities that you possess to create something similar for your local community.
Use Your Expertise to Help Struggling Businesses
If you have the capacity and know-how, think about using your talents to construct an ecommerce platform for a physical store in order to make their sales available on the internet.
If you have specialized knowledge of enterprise and ideas that can help small businesses rebuild after the economic implications of the coronavirus pandemic, you have the advantage to offer practical knowledge to the firms that need it.
For instance, Ahrefs is currently making available their renowned ‘Blogging for Business course at no charge.
If you haven’t had the chance to create a course yet, devise a webinar that provides thorough, beneficial information that only you are qualified to deliver.
You can join forces with someone who is in a related role to present something more in-depth to your audience.
If starting a whole seminar about an unfamiliar theme is more than you want to do at the moment, make things easier.
Erin Flynn from Successfully Simple dispatched a message to their endorsers requesting any inquiries they had regarding their business and provided every one of them with customized Loom recordings as a response.
Offer Free Office Hours
If you provide services for other businesses, you can proffer complimentary meetings with small enterprises that were affected by the coronavirus pandemic.
Take the time to hear what is going on and comprehend the existing conditions and issues they are confronting.
Display your knowledge to demonstrate to them how to pull in more leads, publicize their organization on social networking sites, or whatever your business can provide the best.
Advertise Free Offers From SaaS (Software as a Service) Companies
A number of software as a service (SaaS) firms are providing bonuses in an effort to counteract the negative effects of the coronavirus pandemic.
Give the small business owners who would benefit the most from these discounted services the opportunity to take advantage of them.
They may locate an item that is not only affordable in the immediate future but essential for their business to develop and flourish as they emerge from the emergency.
A mutually beneficial outcome for the vendor of the SaaS deal and the person who is utilizing it is achieved by promoting this alliance.
You can also take advantage of these offers yourself.
By utilizing one of these instruments, you are encouraging their endeavors.
If you uncover something you’re passionate about and simply can’t go without, you can show your encouragement for those businesses by upgrading to a subscription plan after some time.
Research & Recommend Funding Options
Small businesses that are being financially impacted by the consequences of the coronavirus pandemic have access to various resources.
Take a look at the possible choices and decide which ones are appropriate for the smaller companies that are important to you, then proceed to investigate those options further.
Organizations related to the creative arts have several funds that have been established, both around the country and in local areas.
The Federal Reserve has gone to such lengths as to reduce interest rates to a zero percent rate, making it possible for many small businesses to procure loans in order to remain financially stable.
The CARES Act can be used to help to cover costs such as wages, rent, and other associated costs with forgivable loans.
Conclusion
We’ve already said it, but it bears repeating. There is a lot going on right now! Much of it is beyond our control. Many individuals wish to be of assistance in some capacity, however, they don’t have a clear understanding of how to do so.
Shopping small is one small way we can help. No doubt, it’s not being on the frontline, but if we display our support for small business owners and entrepreneurs, the economy will be even more strong afterward when life returns to its original state.
During this period of doubt, it’s reasonable to reduce out-of-pocket spending, but if you really need something, picking a local small business can help – both the local area and the economy.
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