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There are two ways for any business to increase profits.
1. Reduce expenses
2. Increase revenue
During COVID-19 and the stay-at-home orders, one of these methods is common. The other method is uncommonly smart.
Right now, for most businesses, revenue is down. It certainly seems sensible to reduce expenses. This is the common method for dealing with reduced revenue. Tighten the belt a little, maybe spend more on advertising, and ride out the slump.
But there are big, big problems with using this method during COVID-19: the reduction in revenue may be uncommonly devastating, and it may be a very long slump.
The enduring solution is to increase revenue.
“Bob, we’re in a slump! Our business is closed! We can’t sell our product!”
Then sell something else. Back to basics. Back to Business 101. What do people need, right now? How can you retool and meet one or more of those needs?
A dine-in restaurant switches to take-out. A delivery service rents more trucks. A brick-and-mortar store moves to Internet sales.
This is going to take a long time. If your main strategy is to reduce expenses, you’re probably doomed. Pivot to generating new revenue.