By Ayo Onikoyi

As the COVID-19 pandemic continues to impact the global economy, small businesses in Nigeria are facing a myriad of challenges.

The sudden shift in consumer behavior, supply chain disruptions, and the overall economic slowdown have left many small business owners in a state of uncertainty.

Drawing from his experience as a Chartered Accountant and a seasoned financial expert, the financial expert, Joel Odeniyi has hinted on practical and accessible strategies for Nigerian small businesses to navigate the tumultuous times.

According to him: Embracing Digital Transformation: The pandemic has accelerated the need for digital adoption. In Nigeria, where marketplaces and face-to-face interactions are the norms, shifting to an online model can be challenging but necessary.

“For instance, a local fashion retailer in Lagos could leverage platforms like Jumia or social media channels like Instagram and Facebook to reach customers. Offering online ordering and delivery services can help maintain sales and customer engagement even during lockdowns.”

He also talked about financial prudence and forecasting, adding that cash flow is the lifeblood of any business, more so in times of crisis.

“Small businesses need to exercise financial prudence. This means cutting non-essential expenses and focusing on core business activities. For example, a small restaurant in Abuja could reduce costs by limiting menu items to bestsellers and reducing inventory waste. It’s also crucial to create a revised financial forecast that considers the impact of the pandemic, allowing business owners to plan for different scenarios.

“Diversification of Supply Chains: The pandemic has exposed the vulnerabilities of relying on a single supplier or a specific geography for supplies. Diversifying suppliers, especially by looking at local options, can mitigate these risks. For example, a manufacturing business in Kano can source raw materials from multiple suppliers within Nigeria instead of relying solely on imports, which might be delayed or become more expensive due to the pandemic.

“Remote Work and Flexible Operations: Adapting to remote work can be a significant shift for many small businesses. However, where possible, it can ensure business continuity and employee safety. For instance, a tech start-up in Lagos could allow its employees to work from home, using tools like Zoom for meetings and Slack for communication, thereby keeping operations running while adhering to safety guidelines.

Government Assistance and Relief Programs: The Nigerian government, like many others, has introduced several initiatives to support small businesses during the pandemic. Staying informed about these programs and leveraging them can provide much-needed financial relief. For instance, the Central Bank of Nigeria (CBN) has set up a fund to help small and medium-sized enterprises (SMEs) affected by the pandemic.

Engage with Customers and Community: Effective communication with customers is essential. Keeping them informed about changes in operation, how you are ensuring safety, and any new services (like home delivery) builds trust. For example, a small grocery store in Ibadan can use WhatsApp groups to update customers on stock availability and safety measures in place at the store.

He noted that planning for recovery while dealing with the present is also important to plan for the future.

“This includes strategies for scaling operations once the situation improves, exploring new market opportunities, and incorporating lessons learned from the crisis. “