Effect on Covid 19 on small businesses and how they have survived

The after effect of Covid 19 on the business scenario of the world seemed to be pathetic. Due to long and frequent lockdown in many countries, the effect on the economy has been disastrous. Many small companies have been forced to shut down or those who have survived lay off a large portion of their employees. Buying power of the power went down a lot and hence most of the businesses were finding that their goods are not moving across the store.

A large part of the population sat at home and spent their time by playing online casinos. Hence the business of online casinos did really well during the Covid 19 phase and many such websites prospered well. Due to the arrival of the Internet and the Smartphone, the concept of playing online games changed a lot and people started preferring playing online games from home rather than going to the physical casinos. Keeping in tune with the trend, many such online casinos have come up in the market. But it is a bit risky because not all the online casinos are safe and genuine. Many have a bad record of duping away with the players money and many even do not pay on time. Hence it is very much necessary for you to know about the site well before you start playing through it. You must get the list of good casinos from a reputed review site like online-casinos.id where you can get a list of good casinos.

This article will show you how the small businesses can take advantage of the situation in various aspects and sail through in this hour of crisis.

Finance

The Paycheck Protection Program will be of immense help to many businesses at large. The Government of United States has recently issued a $900 billion bill of stimulus which has included availability of additional funds for the Paycheck Protection Program. Many governments across different countries have come up with such stimulus and are asking to the small businesses not to go for closure or lay off. Instead apply for such programs and take a loan from the Government. In many cases, the Government is saying that there is no need to repay the loan as long as the business does not close or the owner does not do any layoff. Before forgiving the loan, the Government will see how you have utilized the loan money.

Getting loans will be difficult to those who have suffered a huge loss during the period of Covid-19 pandemic. In such cases, the business owner can look for alternative source of funding which may include alternative investors or lenders. At this moment, many people are sitting on idle cash and want to invest that money in lure of some good rate of interest. The alternate source of funding may include venture capitalist, fintech, grants, peer-to-peer lending, angel investors and also crowd funding. These sources of alternate funding will be very important as there are many businesses that actually need the money but may not get through the traditional route because Covid-19 has shown a tremendous negative impact on their balance sheet.

Change in Marketing Approach

Spend on social media will increase.

 

The social media platform is increasingly becoming a powerful tool in marketing of different companies and hence it is gradually becoming a target market for the marketers. This way of spreading the message of the product through the social media is gradually increasing during the Covid 19 period. This growth is not going to stop during the year 2021 as it has been found from the evidence that social media spending in ad is going to increase by 15% in the year 2021 and the amount is expected to touch the figure of $105 billion. The toad ad spend in social media in the year 2017 was $54.4 billion. Hence it can be observed that the amount spent on social media has almost doubled during the last five years and especially during the period of Covid 19. As advertising in outside platform like newspapers, billboards were found to be very costly, hence the cash starved companies preferred going for social media platform for advertising their products and services. Almost all the medium and small companies decided to take a break from the old brick and mortar marketing and were convinced to march into digital marketing at a much lower cost. After all, the thing is working out quite well at the end of the day.

Since the demand for social media marketing is going up, it is getting very much competitive as it is becoming a playing ground for both small and large businesses. Hence the small businesses must focus on multichannel approach, especially the organic way to create brand awareness and also an audience. Spending huge money on ads can give a boost to organic growth, but it is difficult for the small companies to compete with the names in terms of ad spent. Hence the small companies can rely more on content marketing rather than ad spending to create awareness about the product.

Adoption of Technology

Covid 19 situation has seen the adoption of virtual reality and augmented reality by the business outlets to a great extent. Of late, it has been found that the small businesses are leading the trend on this front. Actually, the concept of augmented and virtual reality will help experiencing the world in a totally different way. The power of these two tools has been felt especially during the Covid 19 pandemic. If any company wants to go for events on networking, then it must go for VR networking events which are going on around in your city.

Effect on Human resources

There has also been a great change in the human resources field. As small businesses no longer was able to keep their employee strength intact, they started relying more on technology to keep their business afloat. With the change in guard at the White House, it is expected that the minimum wage approved by the Federal Reserve will increase. In fact, Federal minimum wage has not seen a raise since a decade and workers are expecting a more.