With the hurricane of economic and survival crises worldwide, every business is facing numerous problems. Some companies are shutting their doors because of the less amount of resources and revenues.
At the same time, some small businesses are coping up well and gaining customer’s attraction. So, now the question arises, ‘how are they coping up in this crisis time?
In the US, small businesses are reinvented their operations during the pandemic attack. Irrespective of their business style, they are incorporating new ideas and modifying their operating styles.
For instance, some businesses are changing their working hours, adding new payment methods; however, others are revamping their pricing strategies.
What’s more, small businesses are also revamping their business model by incorporating new ways of delivery channels, products, services, and even customers.
To ensure survival amid economic crisis, small businesses of all kinds are changing operating hours, revamping pricing structures, and adding new payment methods. But more than that, small businesses are fundamentally changing their business models by taking on new delivery channels, services, products, and even customers.
The small businesses in Texas, a state in the South Central Region covering the second largest area and US population, are also altering their business model to keep up the flow constant. Since the pandemic attack has shortened the business hours, the businesses are looking to achieve an excellent productivity level as earlier.
Are you curious to know how they are reinventing their small business activities in the US? Let’s dive into the article to explore how US businesses support their new models, innovations, and dealing with the current challenges!
What is the New Business Model Propelling Companies Through the Crisis?
GetApp surveyed 577 small business leaders in June to explore how the companies modify their models to gain more customers and increase their revenue, which is halted by the COVID-19 pandemic.
Well, approximately 92% of the respondents report that they have adopted multiple channels to increase their sales, while others say that they used only one new business model. And the rest 8% confessed that they didn’t adopt any new channel to change their business model. They are operating the business in the same manner as they were doing earlier. Let’s read the new business models of the US small businesses:
Embracing a New Online Delivery Channel
The first and foremost business model that the small US businesses have adopted is the new online delivery channels. Earlier, companies were relying on traditional channels; but now enterprises are embracing new online delivery channels.
They are adding new ways to sell the products through an online marketplace or website. For instance, one retailer of the US said that before COVID-19, he could not set up his business to start the new online delivery channel.
But now, he got some time to think and added online channels that shoppers could use to tell us what items they wanted without stepping into the store. This is how small US companies are dealing with the new economic and survival crisis. Ultimately, what matters most is getting your business back on track; how you do, it is less important.
Develop a New Virtual Service
The next channel that is being adopted by the US small businesses in developing the new virtual services. Some businesses have started giving physical fitness classes like yoga.
At the same time, the retail companies sell their buildings or homes by providing a virtual home tour. Doesn’t it sound something different? Yes, it is! This is why they are attracting new customers and retaining the old customers towards the business.
During the pandemic, virtual services allow companies to reposition their customer value proposition around the changing needs of the customers. Moreover, when you provide the virtual version of your product or services, it enhances your existing business model. Now, the US small business can be able to attract customers who are in distant locations.
Build a New Offline Delivery Channel
The next most popular business model adopted by the US small businesses during the pandemic attack is developing the new offline delivery channels. Now, businesses are offering their customers the benefit of ordering the products or services through phones.
Customers will only need to call them and let them know about their requirements; they will add the details and deliver the products at their doorsteps without even touching anything. In this way, the social distancing norms are being followed by the businesses as well as customers.
Moreover, small businesses have also started curbside delivery services. Now, customers have also discovered the curbside pickup convenience, and it is expected that it is likely to remain in the normal long even after the easing of social distancing needs.
After adopting these new offline delivery systems, businesses are growing their operations and significantly increasing their profit, outweighing the benefits of operating the transaction normally.
Plan for a New Product
Many small businesses in the US are also planning to launch a new product. The new production process requires idea generation, building the best features, engineering the best functions, and then seeking the wholesalers to launch it. It means that many of the companies that aim to develop the new product are actually participating in the manufacturing process.
In several cases, developing new products in the market can lead the business to thrive in the pandemic-induced crisis. Let’s take an example of the US company, AM linen Rental. A small business which was specialized in renting chair coverings and the tablecloths for corporate events and weddings. But we all know that since March, the events industry has been shut down. Due to which these types of industries are facing a huge loss.
However, to stay abreast in the business world, they have changed their business operations with a new product like face masks to compensate for the lost revenue. This example explains that businesses sometimes need to reconfigure their resources to fulfill new customer needs and retain in the market.
Target New Customers
And last but not least, the new business model adopted by the US’s small business is to target new customers. A whopping 5 out of 1 business has started targeting the new customer base or the demographic. Due to COVID-19 pandemic several business owners, several companies have lost their customers.
So, to regain the customers, they have started targeting new customer bases and demographics. There is no choice of thriving the business in this crisis except to look for the customers who can increase sales.
However, to lure new customers towards the business requires something unique in the products and the services. To overcome this issue, more than half of the businesses have launched new products to sell. The small businesses that pursued the new business model of targeting the customers were more likely to report a lack of cash as their biggest challenge.
By now, you would have a better idea about how the US companies have reinvented their business model during the pandemic and how they are overcoming it. There is no denying the fact that every business is facing a lot of hurdles to operate their activities. They are embracing a new business model to come back on the track and start their business as earlier. Change is inevitable in nature.
The more businesses will cope up with the new crisis, whether it is economic or survival, the more securely they can operate the business in the US. It is experienced that companies who have added a new business model are more likely to attract new customers and retain in the business world.
Sarath CP is a Digital Strategist and Consultant, Growth Hacking Specialist worked for both startups & big brands, helped them to build a strong brand presence and achieve sustainable business growth. Follow him on Twitter