These strategies show that small businesses everywhere can take tangible actions right now to stay afloat throughout the novel coronavirus pandemic.
April 6, 2020
When Arno Hesse speaks, business leaders listen.
Hesse, a co-leader and investor with Slow Money Northern California, knows everyone is concerned about how COVID-19 will change communities nationwide.
Because it impacts everything else, Hesse argues that the most important question to answer right now is “How do we keep our local food sources alive and afloat over the next few weeks and months?”
“This isn’t an altruistic question, because if they’re not alive we don’t have anything to eat,” says Hesse, who co-founded the community capital services Credibles and Investibule.
While some farmers are seeing their highest revenues ever and hitting subscriber limits, Hesse says those are the ones with good mailing lists and strong email marketers.
“If you have a direct channel, light it up,” Hesse says. “Now is when you really want to use it.”
Natural food brands that don’t have a direct channel in terms of ingredient sources should take stock of their inventories. If a brand has enough inventory, a mailing list and followers, then now is the time to create an online store that offers shipping.
Keep in mind that if UNFI keeps ramping up your orders because shelves are empty and your inventory eventually becomes depleted, brands could end up excluding both channels in addition to customers.
This is where having long-term subscription or gift card models can help pay the bills and employees in order to free up cash flow for purchasing more inventory. With so many small businesses trying to find funding during COVID-19, Hesse also recommends considering lenders such as Kiva, a microfinancing nonprofit or Mission Driven Finance, an impact investing firm and certified B Corporation in San Diego that makes commercial loans to small business and nonprofits.