Small businesses are among the hardest hit as the health crisis continues to cause economic uncertainty in the country. With the country nearing into a year-long lockdown and keeping up with restrictions, small businesses owners have continued to innovate and work through the challenges, venturing their presence onto online platforms. The convenience of learning how to start a business from the confines of your home, and with the help of other business owners willing to lend a helping hand, has created a space for SMEs to flourish during the pandemic.
Whether you’re starting out or looking to expand your business, here’s what you need to know to ensure you keep your business afloat.
1. Have a business plan backed-up by research
Before achieving a specific goal, one must always have a general plan to follow – even if this happens to change along the way. Create a business plan as it will help guide for short-term and long-term objectives. With this, it is best to map out main goals for the brand and how those goals can be achieved rather than venturing unprepared.
Glyza Go, owner of Get Celeste jewelry shop, has no business background and had to learn the ins and outs of handling her own company. Aware of the risks in entering the business world, she found her safety net in partnering with Lazada.
“I have failed a lot of times in handling a small business but it did not stop me, especially when I decided to partner with Lazada. The tools and webinars helped guide me through my business journey. You can learn so much about selling on Lazada, as well as hear many inspiring stories from other business owners on the platform. Their advice is actually something I still use up to this very day.”
Glyza Go, owner of Get Celeste jewelry shop, has no business background and had to learn the ins and outs of handling her own company.
2. Create a financial plan
Financial planning is one of the most important steps you should take into consideration when prepping for any business. Running a business requires many resources, which is why it’s important to know how much and what you need to invest before you even start. The financial plan serves as a guide to help navigate throughout a business journey; taking note of significant milestones on the path to achieving a profitable growth. This is important as it can serve as safety net for any unforeseen issues and challenges in the long run.
Kiriko’s Koleksiyon owner Jeffrey Ligutom started his businesses out small, signing up on the platform with only five stocks per item listed on his store. His product offerings include mugs and cups, casual wear and formal barongs. “I wanted to test the waters and see how my business would do,” says Jeffrey.
As his sales grew, he used his earnings as capital to procure more stocks and expand his product offerings. Today, Jeffrey now has well over a hundred stocks per item in his store inventory.
3. Choose the right product that will stand out
With the wide plethora of product assortment currently being sold online, stores on eCommerce platforms need to highlight key differentiating points. Understanding the needs of consumers and the market will drive stronger innovation on products and the overall business. Business owners should do research, create surveys to find out what products sold are unique and tangible, and caters to a specific consumer need and demand.
Cely Sy, entrepreneur behind food brand Kenkobei, noticed that instant pancit canton and ramen noodles are quite popular with Filipino foodies.
“Filipinos love the convenience of having instant noodles. It’s a quick and easy fix that’s both yummy and affordable. But Filipinos also consider rice as a main staple and I thought, how could I marry a little bit of these elements together? And from there Kenkobei was born.”
Kenkobei onboarded on the platform last January 2020, offering a vast range of filling ready-to-eat rice meals, conveniently packaged and ready to serve after just adding hot water. They currently offer a variety of flavors such as braised beef, kung pao chicken and more.
“It was a hit as it brought together two things Filipinos loved – the ease and convenience of having their favorite rice meals on-the-go.”
4. Choose an effective online location
Knowing where your store’s online location will be the next step. Lazada is the leading online eCommerce platform in the country, opening up businesses to millions of users nationwide. Lazada’s technology offers sellers Along with this, they offer fast and reliable shipping couriers to assure your customers that each product is treated with the utmost care from the facilities to your doorstep.
Lazada has been beneficial for many, for instance.
Adrian Reyes, owner of Moonscape MNL, joined Lazada in 2017.
For Winnie Wong, CEO of The Everyday: “Being on Lazada made things a lot easier for us – with Lazada helping us with certain aspects such as with logistics and customer service, we can put our focus on other aspects of our businesses such as expanding our product line.”
Meanwhile, Charisma Sun, owner of Coco Factory, also harps on the reliability of Lazada when it comes to assuring her customers’ orders are fulfilled and delivered to their doorsteps. “Failed deliveries are a reality across different platforms, but on Lazada I’m more confident that the order gets to my customers in good condition.”
Charisma Sun, owner of Coco Factory, harps on the reliability of Lazada when it comes to assuring her customers’ orders are fulfilled and delivered to their doorsteps.
5. Consistency and Excellent Customer Service
Being consistent allows businesses to build trust and credibility with consumers and will prove beneficial in the long run when done right. Consistency applies to both the initial business strategy and implementation. There is nothing consumers value more than great customer service – being able to address all concerns and inquiries, and ensuring a seamless end-to-end fulfillment, to provide a memorable and customer experience all throughout. Keeping up with high quality customer service can help retain existing customer base, while also attracting new customers – a key in sustaining business growth.
Due to the pandemic, Glyza was one of the many business owners who decided to enter the world of eCommerce through the Lazada platform. As a one-woman team and with limited resources at hand, she needed an extra helping hand to sell and curate her jewelry pieces.
As Glyza celebrates opening her own humble office last November due to the increase of her Lazada sales, she admits that it has not always been an easy journey for her. “To other sellers looking to go into selling online, do not be afraid to fail! Every time you fail, treat it as a learning process and always give nothing but your best. You may have a few to no orders today, but tomorrow is another day.”
Consumer openness to smoke-impacted wines, offering new market opportunities
Consumers, particularly those that like smokey flavors in food and beverages, are open to drinking smoke-impacted wines. Also, the type of information on the label can modulate consumer acceptance.
Certain groups of consumers appear to be open to drinking smoke-impacted wines, a finding in a new study that could provide market opportunities for winemakers increasingly dealing with the effects of wildfire smoke on grapes.
The study by researchers at Oregon State University and in New Zealand found that consumers, particularly those that like smokey flavors in food and beverages, are open to drinking smoke-impacted wines. They also found that the type of information on the label can modulate consumer acceptance.
“This research provides vital information for the wine industry,” said Elizabeth Tomasino, a professor of enology at Oregon State. “It demonstrates that with certain wine drinkers there is a potential market for these smoke-impacted wines.”
As the number and size of wildfires grow globally, the wine industry has been heavily impacted. For example, an economic analysis of the 2020 wildfires on the West Coast of the United States estimated wine industry losses up to $3.7 billion.
Following the 2020 fires, a research team, led by Oregon State scientists, received a $7.65 million grant from the U.S. Department of Agriculture to study the impact of smoke on wine.
Since then, the researchers have made several key advances. They discovered a class of compounds that contribute to smoke impact in grapes. They also developed spray-on coatings for grapes that have shown promise in preventing off flavors in wines that result from contact with wildfire smoke.
The latest research, published in the journal Food Research International, focuses on consumer attitudes toward smoke-impacted wine, a topic that has received very little attention.
For the study, Tomasino and Jenna Fryer, a doctoral student in her lab, sent smoke-impacted and non-smoke wine made from Oregon pinot noir grapes to New Zealand. There, working with Amanda Dupas de Matos and Joanne Hort at Massey University, they recruited 197 participants for the study.
They conducted the research in New Zealand, a region where winemaking has not been significantly impacted by wildfire, because they were interested in how people would respond to the wines. Future research will compare the results from New Zealand to findings from tasting panels in Oregon and Ohio.
With the research in New Zealand, two clusters of consumers were identified, one that liked the smoke-impacted wine (110 people) and the other that disliked it (87 people).
Findings of the study included:
The smoke-liking group had an average liking score of 6.86 out of a nine-point scale.
The smoke-disliking group had an average score of 3.26.
The introduction of labels, versus unlabeled wine, increased liking of the smoke-impacted wines for the smoke-dislikers from just over three to more than five on the nine-point scale. One of the labels overtly referenced wildfires with the words “Smoke Stack, experience the 2020 vintage with this unique, lightly smokey wine.”
The different labels didn’t have much of an impact on the smoke-likers, but their average scores were still above six, outpacing the dislikers.
The findings indicate that there are potential tools winemakers can use to make a smoke-impacted wine viable for the market, the researchers say. One option is blending, a common winemaking technique that in this case could involve mixing a smoke-impacted wine with a non-impacted wine. Winemakers can also take different approaches to labeling and marketing to specifically target the smoke-liking group.
“Our findings indicate that there is more forgiveness among consumers for these smokey wines than winemakers think,” Tomasino said. “It seems winemakers have a lot more options if they want to sell wine made with these grapes.”
Women more likely to choose wine with feminine labels
The more strongly the participants identified with other women, a phenomenon called “in-group identification,” the greater this effect was. A feminine label also influenced their expectation that they would like the wine better.
To appeal to the majority of consumers, winemakers may want to pay as much attention to what’s on the bottle as what’s in it.
A three-part experimental study led by Washington State University researchers found that women were more inclined to purchase wine that had labels with feminine gender cues. The more strongly the participants identified with other women, a phenomenon called “in-group identification,” the greater this effect was. A feminine label also influenced their expectation that they would like the wine better.
With women representing 59% of U.S. wine consumers, the male-dominated field of winemaking might want to pay attention to the perceptions of this understudied group, said Ruiying Cai, lead author of the paper in the International Journal of Hospitality Management.
“When you look at the market segments, women are actually purchasing a lot of wine. They are a large group,” said Cai, an assistant professor with WSU’s Carson College of Business. “We found that feminine cues speak to women consumers. They have more favorable attitudes toward the label and the wine itself. They were also expecting their overall sensory experience to be better, and they were more likely to purchase the wine.”
Gender cues often rely on stereotypes, and in initial tests for this research, a group of 90 women rated wine labels as more masculine when they featured rugged animals like wolves and stags as well as portraits of men. They designated labels as feminine that had cute animals, flowers and female portraits. Labels with castles and bunches of grapes were seen as neutral.
In two online experiments, a total of 324 women were shown fictitious wines with labels designed with these gendered cues. The participants showed higher intention to buy wines with a feminine label, such as a woman holding flowers, as opposed to a wine with a masculine label, such as a bulldog in a spiked collar. When asked about the expected sensory experience, they rated their liking of every sensory aspect higher, including the color, taste, aroma and aftertaste.
The participant’s level of wine expertise moderated their taste expectations but surprisingly, not their purchase intentions.
“Whether they were knowledgeable or less knowledgeable about wine, when they saw those feminine cues, they had a higher intention to buy the wine. The gender cue influence was so strong, it trumped the effect of that knowledge,” said co-author Christina Chi, a professor at WSU’s Carson College of Business.
A third experiment with another set of 138 women involved a taste test—also with a surprising finding. Researchers gave bottles of the same red wine with one of the gendered labels. More women who tasted the feminine-labeled wine ranked it higher in fruit flavors such as red current and blueberry than those who tasted the same wine with a masculine-cued label—and despite the fact those flavors were not dominant components in that particular wine. Women connected more mineral flavors with the masculine-labelled wine.
However, the participants who tasted the feminine-labelled wine reported liking it less than the women who tasted the masculine-labelled wines. The authors said this could be a result of the incongruence between the expected flavor influenced by the feminine label and the actual taste of the wine sample, which had a medium body, tannin and alcohol level.
Few studies have focused on the perceptions of women wine consumers in a field where 82% of the winemakers are men. That lack of perspective is very apparent on wine aisles, said Chi, noting that many vintners seem to favor masculine imagery like stallions, bulls and roosters–and one brand even features a prisoner in a jail cell.
“When designing the labels, winemakers should involve more women in the process, and it’s highly advisable to pilot test the labels among consumers for gender cues,” she said.
In addition to Cai and Chi, co-authors on this study include recent WSU graduate Demi Deng now at Auburn University and Robert Harrington of WSU.
Tips that businesses should consider during the holiday shopping season
Highlight your strengths—whether it’s one-of-a-kind products, exceptional offerings, or a strong local connection. Design your holiday strategy around what sets you apart and amplify these messages through social media and your marketing materials.
As the holiday shopping season approaches, small businesses are gearing up for one of the busiest times of the year, from Black Friday to Small Business Saturday and beyond.
SCORE, America’s largest network of volunteer, expert business mentors, offers entrepreneurs practical advice to make the most of the season.
Plan for the Holiday Rush
Reflect on last year’s performance. Did you meet your sales goals? Use your previous data to forecast sales, set promotional strategies and manage staffing needs to provide for outstanding customer care.
“It’s about more than just sales; it’s a powerful opportunity to connect with your community, attract new customers and reinforce relationships with loyal ones,” explains SCORE mentor Lizz Smoak.
If you plan on extending store hours during the holidays, communicate these updates with your team early so you are prepared to handle increased sales traffic. Ensure that employees are aware of the holiday schedule and have submitted any time-off requests to avoid last-minute scheduling conflicts.
Create an Experience for Customers
“Engagement is key when customer traffic spikes during the holiday season,” notes SCORE mentor Christy Jones. “Consider offering curated gift guides or exclusive bundles to simplify decision-making for your customers, especially as you compete against large retailers like Amazon.” Plan a special event or connect with other local businesses to promote shopping small.
Stand Out from the Crowd
Consider how you can make your store or service the preferred choice. “Small business owners should contact their existing customers and highlight their unique level of service,” advises SCORE mentor John Doyle.
Highlight your strengths—whether it’s one-of-a-kind products, exceptional offerings, or a strong local connection. Design your holiday strategy around what sets you apart and amplify these messages through social media and your marketing materials.
Be E-Commerce Friendly
As you roll out holiday promotions, make sure that your digital doorstep is ready, too. Confirm your hours, location and contact info are updated on your website, Google Business Profile and other local listings. Many customers will be shopping on their phones so be sure your website is optimized for mobile use and that your most popular products are easy to find. A smooth checkout process is vital for keeping customers happy and encouraging repeat purchases.
“Small Business Saturday offers a prime opportunity for small businesses to step into the spotlight,” said SCORE CEO Bridget Weston. “With a strategic approach, small businesses can leverage this season and see big returns.”