Let me begin this article by making an honest confession. There were millions of small business owners like me that never expected the Coronavirus Pandemic to cause as much mayhem as it did in 2020.
With that out of the way, let us state the obvious- how difficult 2020 was for small business owners. It is true that many small businesses shut down, missed rent payments, lost out on their clientele, and exhausted their savings.
However, it is also true that the entrepreneurial spirit of several small businesses helped keep them afloat. Using digital in the correct fashion also allowed them to make sales.
In 2021, we have turned over a new leaf. A new year with infinite opportunities beckons small business owners. The question then is, how are we going to make the most out of our business performance this year?
Small Businesses need Strategic Thinking and Reduction in Inefficiency
According to the top business experts over at Entrepreneur, small businesses need to begin the new year with a different kind of orientation. The mentality- ‘let us try and see if it will work or not’ needs to be abandoned right at the outset.
Every decision and investment need to be measured critically and deduced only from the point of view of contributing to the profits of the company. It also means that a newfound focus has to be given to areas like promoting efficiency.
Some important and core areas of promoting efficiency are-
- Internal organizational processes and tasks
- Engagement with customers/clients and vendors
- The Supply Chain and Inventory Management logistics
- Sourcing, procurement, and production
List of the Top 5 Ways Small Businesses Can Improve Performance in 2021
- An Inventory Management Software-
If you are a small business looking to boost efficiency, the first thing you need to do is get hold of excellent materials management software. This will allow you to tighten up everything from procurement to the final production and distribution. This, in turn, will streamline the organization, and create a leaner and fitter workforce that is disciplined to internal processes.
- Search Engine Presence and Optimization-
Maintaining an active presence on search platforms like Google and Bing is a pre-requisite for any small business. At its most basic, this includes having a well-optimized business website, with updated information and all the details of products and services. At an advanced level, it includes pursuing SEO and ranking for your industry keywords on search engines.
- Social Media Marketing and Sales-
Every small business should look to aggressively pursue social media marketing to connect and engage with its target audiences. Creating industry-specific content, answering questions, holding live sessions can not only improve branding but also contribute to sales in a major way. Put your website links on social media to generate queries and sales in 2021.
- Ecommerce or Aggregator Platforms-
If the pandemic gave wings to any one specific industry, it was Ecommerce. While Jeff Bezos skyrocketed to being one of the world’s richest men, it also allowed many small businesses to sustain and prosper during the pandemic. If you do not have the resources to start or run your own Ecommerce, try to become a part of an aggregator platform to help boost sales figures.
- Cut down on Expenditure-
Every money saved by a small business becomes a part of its revenues. As a business owner, you should look to cut costs in areas that you think are not feasible at the moment. If it is not affecting the overall productivity or efficiency, you can go ahead and make the decision. Create a list of priority items and start making the cuts accordingly.
The Final Word
If you are a small business owner looking to create a new identity for your business in 2021, you should pay attention to the contents of the article. If you wish to know more about any of the points mentioned in the article, drop your questions in the comments section below.