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Ways Small Businesses Can Survive COVID-19
The COVID-19 pandemic is impacting businesses large and small. Several economists are declaring that a recession is on the horizon. A recessionis a business cycle contraction when there is a general decline in economic activity.This occurrence would be devastating to millions of households around the world. Many businesses are already feeling the impact of the pandemic. Mark Cuban is trying to help small business owners by offering his advice on how they can make it through the COVID-19 pandemic. Cuban provided several key principles that small business owners can follow. These principles are helpful to all businesses.
In order to reduce the spread of the virus, our governmental authorities are urging people to stay within the safety of their homes. As people stay within the safety of their homes, this drastically slows economic activity in the marketplace. As economic activity slows, layoffs may be inevitable. To avoid layoffs, Cuban suggests exploring new types of services. “Since you have holes in your schedule, it’s a great time to experiment with new lines of business and see what sticks.” In other words, business owners should try new things—oureconomy will need all the innovation we can create.
Cuban also suggests that business owners think about their future customers. This is a key principle. During economic decline or hard times, entrepreneurs can become very discouraged. However, Cuban suggests,“Rather than focusing on how bad it is, focus on how you can use this time to connect with your future customers.” He suggests that business owners spend time improving processes and cleaning up areas of their businesses.
Whether you are a business owner or not, maximize your free time and use it wisely. Be ready to emerge post-COVID-19, stronger than ever!
Source:“Mark Cuban: How to avoid layoffs and other advice for small business owners during the COVID-19 pandemic” by Kathleen Elkins, CNBC.
Discussion Questions:
- Adam Smith introduced his phrase “Invisible Hand” in his book Wealth of Nations. It is defined as the unobservable market force that helps the demand and supply of goods in a free market to reach equilibrium automatically. How can this notion be applied to the current pandemic?
- How important are small business owners to our economy? What advantages do they provide over mid and lager size companies?
