The effects of the pandemic can be quantified with the death toll and the economic loss. Governments around the world are trying to negate the fallout brought about by the pandemic. They require the wearing of masks in public places. They have also given businesses financial aid.
As an entrepreneur, you need to plan on how to spend the money. Strategic planning will make the most out of the fund. It will help your company weather the economic downturn. The question here is, which aspect of your business will you work on?
Will you focus your finances on your loans? Or should you buy new equipment? Let us discuss the different aspects of your operation so that you can make an intelligent decision.
Equipment
It is prudent to upgrade your equipment with the money that you have received. The process of reinventing your business will be smoother if you have brand new machinery. The question here is whether you should lease or purchase it. Let us mull over a few questions.
- How frequently will you be using the machine?
- What are the requirements for financing a brand-new machine?
- What are the requirements for leasing the machine?
If you foresee that you will be using the equipment daily, you should purchase it. Let us say that you are running a restaurant that serves organic fruit juices and vegan-friendly meals. It will make sense that you will buy a commercial immersion blender. You will probably be using the machine every ten minutes during peak hours.
Another reason why an outright purchase is a good decision for this scenario is the tax benefits. As the owner, you can use the depreciation of the equipment in your Income Statement.
As a restauranteur, you do not know how to maintain trucks. But you still need one to deliver food to your customers. In this case, it will be wise to lease the truck. You will not worry about keeping it in condition.
Marketing and Branding
For your business to survive, you have to get customers inside your store. Advertisement is a strategic and necessary expense. Will you fall back on traditional advertisement? Or should you immediately jump into the digital marketing scheme?
According to Forbes, traditional advertisement is still useful. This is why the better choice would be the latter. But you should not throw in your entire fund for advertising on one concept. You can also opt for a modern approach to advertising, such as the word-of-mouth marketing strategy.
You can employ the help of an SEO company to increase your online presence. They will not only make your website. But they will also boost your visibility in the search engines.
You should also work on your branding. Most people have the misconception that branding will only work for big companies. But branding is your company’s unique characteristics that set it apart from its competitor.
Let us now discuss word-of-mouth marketing strategy. You should not solely rely on digital marketing. You must ask loved ones and patrons to boost your online presence.
Product
We discussed branding earlier. It is a competitive edge that can help your company weather the economic downturn. You do not need a marketing guru to create one. All you need is ingenuity.
You need to develop a product or a service that sets you apart. By doing this, you are creating your niche.
Let us say that you run a patisserie. You do not have to make a new type of pastry. But you can improve the existing products in the market. It should be ingenious enough to make consumers come back to your store again and again.
Or you can also polish your customer service skills. If needed, you can invest in the training of your staff. The excellent customer service will bring more customers to your door.
Either of those two can become your brand. It sets your company apart from your competitors. With this being said, you should be careful with your brand. An unsatisfied customer will cause a lot of problems. According to this Forbes article, it led to the loss of $75 billion.
You have a lot of work to do to turn things around for your company. But it will be worth it. Strategic planning and wise purchases will help your company survive the economic downturn.
Creating a brand for your company will help you expand your business. Whether you can create an empire out of your business will rely on your efforts. Keeping your customers satisfied will make your company profitable.