Start of this year, we are expecting the COVID-19 pandemic to significantly change how businesses operate. For an average small business, the onset of the pandemic can mean a significant decrease in demand; what if your product or service weren’t even needed? But while companies attempt to maintain sales through other means, this does not necessarily mean that it is the best option. While an endless stream of opportunity that comes with seeking online sales for high-ticket items may seem appealing, this usually comes at the expense of cheaper products or services.
To avoid taking this action, business owners should take the time to ensure that the product or service that they choose to outsource is relevant to their customers and will produce positive results. As you read what the reality of your current situation is, use this analysis to determine the next steps you need to take. Your options may include:
1. Identify the reason for consideration
Regardless of the purpose for which your business is seeking to have access to outsourced sales, make sure that your suppliers have enough inventory to support the growing demand. You may not know what your business’s current buying needs are based on what your product or service is, but it is worth taking the time to understand them before you invest time and energy into sourcing new products or even training your employees on how to work with a third party company.
2. Evaluate the potential for profit
In a time when the demand for products and services is increasing dramatically, it is not just possible for businesses to fail because of production challenges—it is likely to happen. Make sure you spend some time identifying whether the type of company that you are outsourcing is a profitable company. While product companies won’t necessarily need to be profitable to remain sustainable, this is not the case for service providers. Again, for service providers, the more service you provide, the more profitable you are likely to be.
3. Assess the internal resources
Before you assess your options, look at your current employment situation, your business’s financial situation, and the resources that you currently have available to meet current demand. Look at how much work is required to generate demand, how much you would need to implement changes, and what your services are costing you. Once you understand what those estimates may be, you will be able to better identify which options are worth considering.
4. Look into providing email newsletters, salesperson communication, or similar products If your product or service is rather simple—online software like Yelp or Microsoft Outlook that will work under your existing IT platform—seamlessly connecting to others can be an ideal option. By looking at other companies’ success in supplying similar products or services, you’ll be able to identify that even before you’ve hired any new employees.
5. Adopt a credit card payment.
Some businesses may need an alternative method of accounting for their income, or a method that will allow for more flexibility. With credit cards, we’ve talked about a number of times—that means it’s likely that your company is likely eligible for a credit card.
Your default approach might be to see what option works best for your customers, but if you can find another way to track how your customers feel about your product or service and your other products or services, you’ll find another income generating option for your company.e.me
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