Global coronavirus lockdowns have definitely changed the way in which the world does business. On the one hand, customers are more frugal with their money, while many suppliers of consumer items have moved their businesses online.
In certain aspects of rural business trade, this is true too, but bona fide farming practices continue, with boots to the ground daily. With this article, we aim to awaken post-pandemic considerations in rural business owners to help them grow their business, despite the difficult economic conditions.
Special Promotions, Smaller Margins, Continued Profits
A large percentage of the conventional working population is faced with either a reduced income or none altogether. People are less inclined to spend what little money they do have on frivolous expenditure. Regardless of this, you as a business owner can still turn a profit and continue to grow your business, albeit slower than you may originally have anticipated.
As the owner of a rural enterprise, you undoubtedly have a product that a large demographic of consumers needs, be it fresh food, meat, dairy, or organic products. Offer special promotions to your customers, whether you supply to chain stores or local grocers. This is a simple, yet effective way of moving more of your product. It may require you to cut into your profit margins a bit, but at least you’ll still be making money, and reducing losses due to unavoidable wastage.
Expansion is Still Possible
One of the keys to remaining ‘current’ and successful is expansion. We agree that with the financial impact of domestic and international lockdowns, growth will be trickier but it does remain possible. Understandably, with many financial institutions faced with their debtors cashing in on their mandatory credit life insurance to cover loan repayments, they too may be facing challenges. It does not, however, mean that banks will no longer offer a line of credit to business owners; it means that there may be more directives and controls with which you, as an entrepreneur, will need to comply.
One very likely condition for additional funding under the current worldwide financial situation will be that you submit a comprehensive business plan outlying various aspects, including how you will pay the initial capital, and the interest back to the bank. We recommend that you make use of a professional service provider like Mark Lumsdon Taylor to assist with drawing up such a presentation. Authorities in their fields know what the financiers will require, and adhere to it, while still offering you the best advice to obtain the funding to expand your business.
Quality is More Important than Ever
Pre-Covid19, people may have been willing to compromise on the worth of their purchases because they had more disposable income. Now, people are more focused on the quality of what they are spending their hard-earned Sterling on, so they will expend a bit more (even though they may have less with which to splurge) on a product that will last longer; even better if the product is produced locally. For example, an avid knitter may be willing to spend more money on yarn manufactured from sheep from a local farm, than cheaply imported alternatives that have varying colours within the same dye lot.
One thing remains a given: consumers’ buying patterns will continue to change. Business owners will need to change with them, so keep thinking of innovative ways to stay ahead of the game, and establish your business as a forerunner for continued growth.