The most effective survival kit for small businesses is to adopt new innovation and adapt their digitalization plans in order to encourage a development in the pandemic time.
COVID-19 has implemented tremendous changes in us. Many months have passed by, and we find ourselves being reliant on online and digital channels to live, work and play. The pandemic has undoubtedly motivated new behaviors, altering our lifestyle as we adapt to the new normal. One notable trend is the accelerated shift to eCommerce. Consumers have quickly adopted new ways of paying that do not involve physical contact such as tapping to pay. Even the older generation have turned to eCommerce for daily necessities such as foods and groceries. For small businesses, turning to eCommerce and adopt this innovation is the survival kit that they have to possess.
Amidst these challenging times, small businesses have demonstrated their resilience and adapted quickly. More than two-thirds (67%) of small businesses have tried a new approach to keep their business on track since the start of COVID-19. More than a quarter (28%) have started to do targeted advertising on social media, followed by sold products or services online (27%), allowed contactless payments such as mobile or tapping a card (20%), and offered home delivery (20%).
Benefits of digital payments are more evident
While the use of traditional payments methods has provided small businesses with some temporary relief in terms of maintaining liquidity and improving cash flow, they are increasingly proved to be inconvenient as temporary closures of non-essential businesses mean vendors and suppliers are unable to make trips to the bank. Those things can consequently lead to delays in payments.
On the other hand, the benefits of digital payments are increasingly evident as concerns over handling cash grow. As more businesses adopt new ways of working remotely, digital payments could enable local and overseas suppliers to be paid on time, no matter where they are located.
Debunking myths about business payment cards
Many businesses are not fully utilising their business payment cards and hold to the misconception that it acts as merely a payment tool. Contrary to popular belief, a Visa business card is a finance management tool that provides businesses with better oversight and control over their working capital management.
A business payment card will allow small businesses to streamline their payments process while enjoying curated offers, cashback, and benefits. More importantly, a Visa business card can extend credit by up to 55 days, interest-free, to help improve the cash flow of small businesses.
A key concern we often hear is the lack of card acceptance by suppliers, but we believe this is fast changing given the circumstances brought about by the current pandemic. Visa Business Payment Solutions Providers (BPSP) can expand B2B payment acceptance, bridging the gap between small businesses and their suppliers, making payments less of a hassle and more of a convenience.
To adapt is to survive
Besides having to grapple with new ways to pay and be paid, small businesses have had to relook the way they run and conduct their operations too. The perks of the Visa business payment card is that it extends beyond being payments – it also provides access to additional tools and solutions to help small business owners succeed in managing various other aspects of their business.
Small businesses can increase their productivity with digital tools and cloud accounting platforms, which comes with having a Visa business card. Small businesses can also leverage special discounts and offers on eCommerce platforms such as Shopify, Boutir, and BigCommerce with their Visa business card. In addition, small business owners get to upgrade their skills by accessing LinkedIn Learning and HBR Ascend courses, as well as online advertising platforms such as Google Ads to better identify and capture new customers online.