Budgeting Tips As You Reopen Your Small Business
The new normal for businesses is here. Follow these tips to allocate your budget to best appeal to customers for the months to come.
As states across the country begin easing restrictions and allowing businesses to open following strict guidelines, it's important for your organization to prepare for the new normal. While you may have found the magic formula for budgeting in the past, it's likely time to reevaluate your spending to ensure you're investing in the right areas to welcome back customers.
Operating a business looks a lot different in today's environment, and likely won't return to what it was for a long time. Here are our tips for how to allocate your precious dollars to benefit your business during these new times:
Take your marketing efforts online
Nuphoriq recommends that businesses spend 2-5% of their sales revenue on marketing. Of course, this doesn't give much insight into where to spend your advertising dollars. Between TV, radio, print and social media, there are a multitude of channels through which to spread your brand's message, but which is the most effective?
In 2018, Adweek reported that for the first time, more consumers were viewing ads online than through any other media channel. It's important to meet consumers where they are, and with social distancing recommendations still in place, that likely means on their mobile devices. Use your marketing budget to advertise online through email and social media - an advantage of this method is that you can also personalize messages for each consumer.
Invest in contactless payments methods
Another way to adapt to social distancing rules is to invest in contactless payment methods. This may mean investing in a better eCommerce platform to support seamless online transactions or purchasing new POS systems that accept "tap" payments from credit cards, smart watches and mobile phones. Not only does this make checking out easier for customers, but it helps your organization stay on top of sanitation. Your payment terminals are likely one of the most touched objects in the store, so by promoting contactless transactions you can help your employees and customers avoid handling one extra communal item.
Invest in POS systems that accept contactless payment from both credit cards and smartphones.
Upgrade your cleaning game
USA Today pointed out that an emphasis on having a clean and safe storefront is going to be of the utmost importance now. As a small-business owner, you must be able to make your customers and employees feel safe before welcoming them back to your store. This isn't even to mention the setback your business could face if an illness was linked to your store. Use a portion of your budget to invest in new cleaning supplies and a better routine for sanitizing common areas and high-touch surfaces.
Reinvent your storefronts - both brick-and-mortar and online
Let's face it, your store might not be physically ready to accommodate new customers with the new social distancing recommendations in place. Put some money toward rearranging your store to make it more spacious for customers to move around in. If this isn't possible, use that same budget to spruce up your online presence and offer services such as curbside pickup.
To learn more about how to budget your business money in wake of the COVID-19 pandemic, contact your local Vectra Bank representative today.