How does Business Survive Amid Pandemic

The impact of the pandemic is endless in eroding the economic sector in Indonesia. Based on the GDP report in Indonesia by the Central Statistics Agency, there’s a contraction of 2.41% compared to 2019. Economic growth in the first quarter of 2020 was lower than the fourth quarter of 2019 by  4.97%. This decrease caused by many things, one of which is the reduction in spending made by the community. The GDP’s fall has an impact on the country’s economy turnover, namely the weakening of purchasing power in the community. Therefore, a good business strategy to survive amid pandemic has become very critical to implement.

Establishing the right business strategy to survive in a pandemic is a must for all business owners. Therefore, CoHive held a CoLearn Online webinar entitled  “Business Strategy for SMEs during Pandemic”, a discussion with Danny Setiawan, CPA the Founder of Trustvation, a financial consulting company, IT, and business development strategy in Indonesia. This dialogue was moderated by Andrea Sudirman (Community Lead CoHive Event). Read down below for more tips to keep your business afloat in the middle of a pandemic.

  1. Optimizing the online system

The pandemic has imposed a limitation on sellers to perform traditional transactions with buyers. Therefore, making online system as one of the methods that can help to maintain business amid a pandemic. Danny stressed that entrepreneurs need to open their minds to start expanding their commerce to online platforms. The transition process might cause behavioral differences in customers, due to the absence of direct interaction between sellers and buyers. Therefore, building trust between the two parties is a very important part of optimizing online systems.

  1. Performing attractive promotions and collaborations

Apart from transitioning to an online system, promotion and collaboration are important tools in building an online business. Nowadays, promotion can be done in various ways, one of which is through collaboration. Collaborating can enhance and expand promotional networks that are right on target.  Therefore, Danny suggests collaborating with communities that have mutual interests with the business. For doing a collaboration, promotion proceeds by building communities through content creation on social media. In this case, a structured plan is important to deliver relevant and useful content to the audience. Thus, the content presented must be filled with positive information and published regularly. Danny emphasized that consistency is the key to the success of promotional content.

Read: Keeping Business Afloat During Pandemic

  1. Expenses management

In addition to promoting marketing strategies, entrepreneurs also need to pay attention to the company’s financial management. The Covid-19 outbreak has forced all companies to reorganize their financial systems for the business to survive during a pandemic. Danny explained that making a projected expense is one of the options that can be applied by the entrepreneurs. Some expense projections classified by comparing the budget every week, deferring unnecessary expenses, applying for an installment relief if there are any loans left within the company, and utilizing tax incentives issued by the government.

Maintaining a business in the middle of a pandemic is certainly not an easy thing. Therefore, careful strategy, marketing planning, and effective budgeting are important to maintain a stable pace of business. As quoted by Danny, pandemic requires business owners to change their mindset, which to aside the ambition to gain profits. Instead, they should be prioritizing positive outlook and persistence to survive in a pandemic.

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