Forced closures, declining sales, and increased operational costs are challenges that face businesses today as the results of the novel coronavirus pandemic. No longer able to rely on consistent revenue or guaranteed sales, companies in a myriad of industries are struggling—a considerable percentage have already thrown in the flag, opting to close their doors forever.
As a successful entrepreneur and real estate lead investor, Randal Gindi understands the challenges that face today’s businesses in regard to the current pandemic. Above all, he encourages business owners to adopt an opportunistic mindset when it comes to navigating them. True entrepreneurs will seize these challenges as an opportunity to better their overall business structure, increasing their returns in the long run.
For those who are seeking to sustain or even grow their company through the pandemic despite declining sales and an uncertain economic landscape, he’s outlined these key tips for staying afloat during hard times.
Revisit your Business Model
The current pandemic has drastically altered the global economic climate; you’ll likely need to adapt your business model to meet evolving demands. That’s why Randal Gindi recommends revisiting your current operational strategies with a specific focus on financial metrics and cash flow. In your analysis, you’ll want to re-assess target sales and projected revenue while working to minimize the potential for debt incursion.
Depending on your company’s current budget and revenue, you may also need to scale up or cut back on marketing costs. Above all, be proactive in seeking ways to adapt your current business model to better meet the unique demands of today’s market. Significant changes may be necessary in order to help your company thrive through the pandemic.
Seek to Cut Costs
Amidst lockdown mandates many companies have been forced to shut their physical doors to the public. As a result, numerous ventures have successfully pivoted their strategies to thrive on online platforms—some have shifted entirely to ecommerce models. As highlighted by Randal Gindi, these methods hold a two-fold benefit: they increase the company’s overall marketing reach while minimizing overall costs associated with brick-and-mortar businesses. For many, the result is a company that achieves higher profit margins despite declining or stagnant sales.
Of course, the nature of some businesses dictates that a transition towards fully online operations is impossible. In these cases, Randal Gindi still recommends re-assessing your current business operations to cut cost where it matters most in order to create a wider margin for potential profit.
As demonstrated consistently throughout history, crisis breeds innovation. It’s some of mankind’s most trying times that have brought about many of our most essential advancements. That’s why Randal Gindi recommends that struggling businesses view today’s uncharted economic landscapes as the perfect opportunity to seek new and improved business solutions.
Use online platforms to foster a valuable staff support system, actively seek collaborative solutions for your company’s problems, and embrace change as the necessary ingredient for success. Many distilleries, for example, have turned to making hand sanitizer rather than craft beers. Designer houses have halted the production of their clothing lines to instead pump out much-needed masks. Similarly, Randal Gindi advocates for thinking outside of the box in order to achieve success in this new and evolving market.
Build Consumer Loyalty
Customer loyalty has always played an essential role in successful business practices. Amidst the economic pressures posed by the pandemic, however, it’s more important than ever. That’s why, Randal Gindi recommends that business owners actively seek ways to serve their surrounding communities during these trying times. Go the extra mile in delivering services, participate in community aid initiatives, or offer valuable reward programs. Outside of promoting brand awareness, community outreach initiatives also work to humanize the company, promoting long term loyalty and consistent business despite economic downturns.