Micro and small enterprises must adapt their operations to survive this sweeping pandemic...business survival, and by extension, the entire economy, depends on this!
Simply put, business models and processes must change!
What is a Business model?
The way an organisation does business i.e., how an organisation captures, creates, and delivers customer #value. Customer values are the reasons why customers buy your product or service – quick delivery, cheap prices, high quality product, etc.
What is a business process?
All the steps and activities undertaken by staff and machinery etc. in order to achieve a business goal.
(Source: https://cio-wiki.org/wiki/File:BPI.jpg)
To survive #Coronavirus #Covid19 #Pandemic, business processes must be #Technologically #Integrated and #Logistically #Flexible.
That means:
We must use technology to our advantage.
Outsource non-critical processes.
Collaborate with members of our supply chain (suppliers and distributors).
Use data to drive decision making and planning (customer demand and inventory planning)
Flexible Logistics and Supply Chain Model
Adapted from: https://www.researchgate.net/publication/290220672_Intelligent_Logistics_Involving_the_Customer/figures?lo=1
1. Extensive use of I.T.
Use cloud-based systems to allow suppliers to see your demand levels (measured by customer sales), and to see supplier’s inventory in real-time.
Use #GoogleDrive and shared drive storage to store company’s documents instead of physical cabinets, which can be retrieved by authorised personnel.
Create digital versions of physical forms.
Create a free company website (if one doesn’t already exist) via #Wix, or a free #FacebookPage, where you can create Members' Areas, and upload all relevant forms and information.
Use #Zoom/#Skype/#WhatsApp/#FacebookMessenger/#FacebookWorkplace /#GoogleMeet to conduct online meetings with staff, suppliers and distributors.
Use #MicrosoftTeam to allow employees to work together on projects in real time.
Use Facebook/WhatsApp/#Instagram to communicate with customers, advertise, offer deals, etc.
Use #SurveyMonkey/#GoogleForms to gather/capture information on what customers really want and how you can increase your #ValuePreposition (how you can make your product/service more appealing to customers).
2. Outsource non-critical activities
Outsource basic administrative work – sending email campaigns, data entry, letter writing, etc., to virtual assistants (e.g. GBCTS).
Delivery can be outsourced to local couriers (e.g. Bistro Dash).
I.T. can be outsourced to local technicians and software businesses/consultants (e.g. Hive Technologies).
Outsource your accounting function to qualified Accountants who can help you realise income savings from tax breaks and tax returns (e.g. Advanced Taxation & Business Services Ltd).
3. Collaborate with supply chain members
Form closer (strategic) partnerships with suppliers to get your raw materials on time, at the right quality, and to get extended credit if possible.
Utilise vendor management software to allow suppliers to see when your inventory is running low and to top off accordingly.
Form partnerships with delivery companies to get your products delivered to customers at the right time.
4. Extensive use of Data
Use Survey monkey/Google Forms to get information on what customers want, and to measure their levels of satisfaction.
Use Survey monkey/Google Forms to get employees’ needs and wants and to measure employee satisfaction.
Use cloud-based vendor-managed software to assist in inventory management
Use Facebook Polls and quizzes to get information on customer behaviour and brand loyalty.
Use your business' financial accounting data and ratios to ensure that the business has sufficient #CashFlow and liquidity, and to ensure that too much capital is not tied up in current assets, i.e. inventory, Debtors, and/or works-in-progress.
Use industry/competitor information to see how other businesses in your field are coping, and #Benchmark your business' performance against theirs. This analysis will help in short-term and long-term planning.
Visit competitor's website and Facebook page to learn about how they are dealing with Covid-19, and whether the strategies they are using seem to be effective or not.
Use internet sources to learn more about Coronavirus and how businesses can cope.
This is certainly not an exhaustive neither a prescriptive list, but it is hoped that each business will tailor this information to suit its own unique circumstances.