Month: April 2020

How to keep your business profitable during the COVID-19?

A lot of businesses were negatively impacted because of the coronavirus. However, some of the business owners were creative enough and could make a profit even at this challenging time. Today we are going to tell you the possible strategy to cope with a pandemic. Moreover, we will discuss a real company example that is staying profitable even during this challenging time.

Going Online

McKinsey & Company said ‘The battle against COVID-19 is one that leaders today must win if we are to find an economically and socially viable path to the next normal’. We are offering you not to wait until this battle will be won by the leader, but rather won it by yourself and become a leader eventually.

Due to the self-isolation policy all over the world, the online world receives first priority compared to the physical one. This is why moving a business online today is a necessity, if the manager wants a company to continue to operate.

We believe that is a force for better because going online benefits businesses in various ways. Here is a list what will be improved, if you move your business online:

  • Increase sales
  • Improve external communication
  • Improve companies’ image
  • Higher employee’s productivity
  • Speed up processing
  • Enhance and efficient service
  • Attract new customers

Generally speaking, a business will improve its competitive position.

Majectic Meat Case

However, going online does not mean the creation of the website, it’s a more complex process, that involves an online ordering system, social media, etc. Let us tell you a story about Majectic Meat Co.

Being a meat supplier to Utah’s local restaurants, the company lost most of the clients as the restaurants got closed one by one. Moreover, they had a lot of product surplus that was going to spoil very soon. It means not only no profit but also huge losses. The company’s management was limited in time to come up with a decision. So, they did what has never been done in the company before. Majectic Meat Co started selling meat directly to the community by adding an online ordering system to their website. As a community was happy to show support to a local business, this single move saved the company.

Mike Marsh firstly told this story. We found this case a perfect example for all small business owners, who are unable to sell their products because of the shut-down policy. However, to embed an online ordering system, Majectic Meat Co asked a local IT expert. Furthermore, we can bet that in the foreseeable future, they will ask the expert for another favour or even hire him because this kind of system requires permanent support.

Good news, we want to become that expert for you! With Catalog Machine you can update all the product base at once, integrate online ordering system into an existing website or use it separately, create tiered pricing, and a lot more!

Check the video on how you can start receiving orders online and selling directly from home in this video.

Top 5 factors that stop a small business from selling more

Are you trying different methods to increase sales, but nothing works well enough?

Have you tried Digital Marketing? Have you made the most out of your capacity? Sure?

We will show you what stops the small companies from using Digital Marketing to its fullest extent.

Top 5 barriers

Taimnen Heinin and Karjaluoto Heikki* proved that small companies are struggling when it comes to digital marketing channels usage. We are talking about a website, emails, social media and blog. You, as a small business owner, risk not derive benefits from the opportunities. The first step to overcome this is to become aware of the barriers that stop you. Not other words explore the list.

 

  1. You

Yes, you are the first and main factor that might stop a company from selling. Sorry for being too straightforward; we did not mean to heart your feelings. What is the result of your background, motivation, capabilities and experience?  It is the stop or stimulation of the effective usage of digital marketing channels. Scientifically this factor belongs to a group called “firm-specific and owner-manager factors.”

Heinin and Heikki* talked to 16 small business managers. Some of the interviewees had prejudices about the usage of social media. As you already guessed, it provokes nothing good for a company. Usually, this kind of attitude towards social media was the result of unfamiliarity with different channels and how they work.

The moral of the story increase your digital intelligence. Good news, we are here exactly for this purpose. Keep reading this blog to overcome the ‘You’ barrier.

Let me tell you a story about how overcoming a “you” barrier bring a start-up to success. A few years ago one passioned about tourism girl decided to create a business based on her hobby. ‘Challenging holiday” had a unique business model, they offer a combination of holiday tour with business lectures and extreme experience. Sound fun? You can imagine how many thousands of dollars a girl invested to arrange the first tour… and almost failed. The lack of Social Media knowledge didn’t let her target the right audience. In a week before the trip was supposed to start, she decided to use opinion leaders as a way to promote her business. In couple of days, all trip spots were sold out! This is an example of how crucial the experience and knowledge of business owners is for small business success.

  1. People around you

Here were are talking only about coworkers. In a big company, the lack of knowledge or experience of one employee mitigates by another one. In a small company, there is always a lack of human resources.

What to do? Invest in your people. To grow the business, you should start playing in a long game. Shift a focus from the sales into increasing digital awareness among your employees.

The importance of people around you was nicely described by David Ogilvy in ‘Confessions of an Advertising Man.’ “If each of us hires people who are smaller than we are, we shall become a company of dwarfs. But if each of us hires people who are bigger than we are, we shall become a company of giants.”

  1. Goal…

… and the way it should be achieved. Due to the research* small companies are focusing primarily on the website, SEO (search engine optimization) and social media. What’s out of focus? Blogging!

Blogging is a two-way communication process, as well as social media. But, compared to the last one, blogging retains more control. The two-way communication channels allow you to engage the customers and create brand awareness.

There is a tricky part here. People are having fun at social media and expect the story to be told. No direct sales! Social media should be perceived as a tool to start a dialogue with the customer and create value for them.

Want to be straightforward and sail right away? One-way communication channels are here for you. Your website, SEO and SEA (search engine advertising) and the emails are an excellent way to sell. You may achieve a better ‘right now’ result, but what’s about the future?

  1. Competitors

They are always here. Especially if your competitors are bigger companies. They might dictate what is necessary at the market to survive. We can be sure of the first rule. Digital existence. If a company cannot be found in Google, it does not exist.

The way you exist (which digital channels are you using) is up to you. You may research your competitors and use the same channels as they are to stay at the same level. The other way is to find your niche, a channel that is not taken or not that popular.

For example, AirBnB is a substitute for traditional hospitality. So, if you are thinking about opening a hotel, you should take into account the prices offered by  AirBnB. Especially if you are not offering luxury class services.

  1. Resources

We’ve already talked about the importance of a human resource, but there is a list of other resources that can’t be overlooked. It is money, time, technology. Each of them is a potential barrier for a small company that holds it away from the bright digital future.

The lack of resources is a common characteristic among all small-size businesses. How to win? Be more efficient than others. We’ve already described one of the possible ways to achieve it here.

 

Now you know what might stop your business from success. Moreover, you know some options on how to overcome these barriers. Forewarned is forearmed!

Be skeptical of yourself as a business owner. Around yourself with people you admire. Keep your competitors and modern trends under the radar.  Use your resources wisely.  Doing all of this will allow to set up realistic goals and grow. Start with yourself. Spend a couple of hours today to think which areas are needed to be improved. Search various education online resources and online platforms to select the most suitable way for you to become a better businessmen/women.  The barriers are needed not to stop you, but to make your way more interesting!

 

* Taimnen, H and Karjaluoto, H, (2015), The usage of digital marketing channels in SMEs. Journal of Small Business and Enterprise Development, 22 (4), 633-651. doi:10.1108/JSBED-05-2013-0073