5 Small Business Challenges Made Worse by COVID-19

Small businesses are what make America great. The ability to take a dream and make it a reality is something to be admired. After past recessions, it was small businesses that did the bulk of the hiring. But this time things are different. Small business challenges are being compounded by the COVID-19 pandemic.

One in five small businesses has closed. Restaurants, beauty salons, gyms, and other businesses that rely on face-to-face contact have been hit hard while Americans practice social distancing. Many small businesses are struggling. 

This article will take a look at five small business challenges that have gotten worse since the pandemic. Has your business experienced one or more of these challenges? You are not in it alone. 

Challenge 1: Lead Generation

For many B2B companies, in-person events were a great source for obtaining new business. Since the COVID-19 pandemic has forced in-person events to grind to a halt many businesses have suffered the consequences. Let’s face it webinars and zoom events are just not the same.

These events allow small business owners a space to expand their reach to a specific target audience. We will just have to wait and see if in-person conferences and events will come back to pre-pandemic levels or if companies have moved on. 

Around 50% of B2B buyers are holding off on making purchases because of the pandemic – travel, hospitality, and automotive. But there are some industries that haven’t been as affected by the pandemic such as technology, e-commerce, and marketing. Deals in these markets are still moving forward right now. However, there is no guarantee that these selling conditions will still persist after the vaccine is fully distributed and when life returns to normal. 

Face-to-face sellers are having to rethink the way they do business and become more effective selling remotely or online. Building up these skills will only make you better at sales even after the COVID-19 pandemic is over.

Challenge 2: Fatigue

There are many small business challenges such as fatigue that have only gotten worse during the pandemic. Before the pandemic, many companies were becoming fatigued by the hours, the work, the constant worry, and pressure to perform like normal.

Many small business owners – even successful ones – get stuck working much longer hours than their employees. They feel that in their absence the business will stall or fall apart, so they avoid taking time off from work for personal or vacation days. 

Now because of COVID-19, there is even more external pressure on everyone. No longer are business owners just concerned about the health of their company but also the health, but also the health of their employees and their families.

What will happen when/if my employees get sick? Will I be able to keep my business open? 

This constant fear has taken its toll and many small business owners and their employees. For employees, fatigue can lead to a drop in performance. If performance drops too much the business will suffer. On the other hand, owners do not want to put additional pressure on their people because they know they are doing their best at the moment. 

When business owners suffer from fatigue it can lead to rash business decisions, including the desire to throw in the towel. It’s important to find a pace that keeps the business going but also is considerate of the extenuating circumstances and that is going to look different for every business. 

Challenge 3: Founder Dependence

Let’s say, heaven forbid, that you are infected with the coronavirus tomorrow. Would your business be able to survive while you are out sick or even without you entirely? A business that can’t operate without its founder is a business with an expiration date. 

Many small business challenges stem from founder dependence. The root of the problem often lies in the founder being unable to let go of certain tasks and responsibilities as the company grew. 

In theory, this is an easy problem to solve. The founder simply must give up some of her and his control to employees or other business partners. However, in practice, it can be very difficult for an entrepreneur to hand their baby over to someone else who won’t perform the task in the exact same way. 

Challenge 4: Short-Term or Long-Term Content

One of the biggest challenges many business owners find themselves in is not knowing how much of their marketing content or advertising could be related to the pandemic. We even saw some of the biggest companies wrestle with this challenge just recently in the Superbowl with many advertisers opting to sit this one out. 

The problem with evergreen content is that right now many people might not find it relatable. The problem with COVID content is that it will no longer be relatable once the pandemic is over. The challenge that business owners are really facing here is should they be creating content for the long haul or short term. 

Different marketers have different theories but I for one believe that content marketing is a long-term strategy, to begin with. It will take a while for you to see the fruits of your labor.

I would shift your thinking to focus on providing value whether that is in evergreen content or COVID-related content. Both types of content have a place in your marketing strategy. (Email me if you want to chat more about marketing strategy)

Challenge 5: Adapting to Online Business

Many small businesses were forced to close during the pandemic. Some of these businesses were able to pivot to completely online sales leaving the brick and online businesses behind. Restaurants and bars started relying on app delivery services more than ever before, and mom and pop stores were opening up e-commerce websites to sell their goods. 

One of the biggest challenges facing small businesses during the pandemic was transitioning to online sales. During a recent Facebook Live address Mark Zuckerberg said, “We’re seeing a lot of businesses that have never had online presences get online for the first time, and we’re seeing small businesses that had an online presence now make them their primary way of doing business.” 

For many small businesses the internet is a lifesaver, helping them to stay afloat during the worst of the pandemic. However, these new business solutions can be difficult for business owners to set up and can be even more difficult to integrate into their operating processes that they have held for years. And while these online channels can’t make up for all the business lost by small business owners for many they are the difference between sinking and staying afloat.

Stay Strong

All of us can play a role in helping our small businesses get through this difficult time. From buying your coffee from a local shop and ordering takeout from your favorite restaurant up the street and encouraging small business owners you know to stay in the fight. 

Maybe in the end we will see that it wasn’t really the ideas or products that made American small businesses great but the determination and grit of our business owners who were determined to make it happen one way or another. COVID-19 may have knocked us down but rest assured that American small businesses will get up again. 

If you are in the professional services industry download my free resource, Social Media for Professional Services. Learn how to jumpstart your social media strategy, build your brand, and turn your social channels into lead-generating machines.