How Small Businesses Adapted Through COVID-19, Often Through Increased Automation
The COVID-19 pandemic dealt a devastating blow to many small businesses, requiring rapid changes just to stay afloat. My small business clients have shared stories ranging from abrupt declines in revenue to shifting their entire business models practically overnight. And while incredibly challenging, many of these forced changes have long-term upsides when it comes to operating more efficiently.
This was confirmed in a recent survey of 2,000 small business owners examining how they‘ve adapted to the pandemic‘s effects. The results provide a snapshot into the pain points they‘ve experienced, while also revealing the tools and strategies enabling some to not only survive, but potentially thrive in the "new normal."
The Harsh Realities Facing Small Business Owners Today
The most immediate challenge cited by owners was maintaining revenue levels, as economic uncertainty and restrictions cut sales. 25% noted they switched to irregular hours attempting to curb losses. 10% are working harder than ever with fewer staff and resources available.
But it‘s not just long days impacting bottom lines. 24% now spend 5-10 hours weekly on administrative tasks alone like bookkeeping, appointments scheduling, and customer follow-ups. While essential, these repetitive tasks leave less bandwidth for critical functions like business strategy, accounting, sales, and customer service.
This burden of administrative tasks is further highlighted in data from a 2022 automation adoption survey conducted across 500 small business owners:
| Administrative Task | Average Hours Spent Weekly |
|---|---|
| Bookkeeping / Payroll | 3.5 hours |
| Appointment Scheduling | 2.1 hours |
| Customer Follow-Ups | 3.2 hours |
| Communications / Email | 3.7 hours |
| Total | 12.5 hours |
That‘s over half a day each week spent just on essential administrivia. And this aligns with my own client experiences, where cumbersome workflows for routine tasks keep owners and staff stuck in operational minutiae instead of strategy development.
Museum Hack founder Michael Alexis shared that when COVID hit, his $250K/month museum tour company "…went from hard-earned revenue, to zero income overnight."
This story has played out far too often the past two years. But Alexis provides an inspiring example of utilizing technology to rapidly adapt. In just 24 hours he entirely repositioned his business, relying more heavily on tools like Zapier for workflow automation and Google Ads to aid recovery.
The Upsides of Workflow Automation
When asked about the potential impact of automating repetitive tasks in the survey cited above, over 50% of owners felt it would save them time, while nearly a third said it would boost productivity:
| Expected Outcome | Percentage of Respondents |
|---|---|
| Save Time | 53% |
| Increase Productivity | 31% |
| Improve Operations | 28% |
This aligns with hard ROI data I‘ve observed from clients adopting solutions like Zapier, Workato, Blender.io, and Integromat for automating workflows…
Expert Commentary on Small Business Automation Trends
To provide additional expert insights on the crucial role of automation for small businesses navigating COVID-19 effects, I connected with several respected analysts and academics studying this topic:
"Small businesses have faced urgent demands to digitize operations for business continuity and crisis response," says McKinsey partner Laura LaBerge. "Adoption of automation technologies like RPA played a key role accelerating digital transformation for many owners."
Boston University Professor Ricardo Calcador concurrs: "The ‘great acceleration of technology adoption‘ triggered by the pandemic opened many small businesses‘ eyes to solutions directly enhancing resilience and agility."
As a machine learning specialist and automation consultant, I‘ve witnessed this firsthand working with over 100 small business clients the past several years. Those that embraced automation early on maintained critical workflows despite restrictions, kept customers engaged online, and freed up strategic planning bandwidth for their leadership teams during the pivot to digital-first operations.
COVID-19 Served as a Gateway to New Technology
One in five owners incorporated video conferencing for the first time due to remote workplace shifts. Others picked up webinar software to host virtual events, team chat apps to stay connected, and critical backend solutions like eCommerce platforms.
10% noted feeling more reliant on software and apps to run their business. And based on the ongoing uncertainty, over 40% feel changes they‘ve made will likely stick long-term. Rather than representing temporary band-aid solutions, these technologies fulfilled unmet needs. Their ongoing use signals a meaningful, permanent shift in how small firms operate.
But barriers still exist for those slow to adopt new tools. 1 in 10 cited lacking technical skills, while 20% remained unsure of the best options for their unique needs…
Practical Steps to Get Started with Business Process Automation
For small business owners intrigued by automation but unsure of where to begin, I‘ll provide an easy 6-step plan to start streamlining workflows:
1. Review Critical Business Systems
Which tools manage essential functions like payroll, inventory, CRM, accounting, POS, appointment booking, etc? Prioritize automating processes tied to these systems first.
2. Map Current Workflows
Analyze how staff move data/info between critical systems manually today. These handoffs are prime automation targets.
3. Identify Top Bottlenecks
Which manual workflows are the biggest time/productivity sinks? Route these into automation tools first.
4. Select Initial Automation Tools
Leading platforms like Zapier, Integromat, and Workato integrate easily with popular small business apps. Need help choosing? Reach out!
5. Build & Test Initial Automations
Start small by embedding a single repetitive workflow into your automation tool. Ensure it functions accurately before expanding.
6. Track Automation Impact
Measure metrics like hours saved, staff productivity, and ROI over the first 3-6 months. Tweak approach based on data and growth opportunities.
Feel free to leverage my team‘s automation experience if you have any questions during setup or measuring business impact!
Jumping right into steps 1 and 2 by auditing and mapping current manual workflows is practical way for any owner to kickstart their automation journey…
Key Takeaways for Small Business Leaders
If one positive arose from COVID-19‘s effects on small businesses, it‘s that many discovered new ways to get lean through scalable solutions. While still facing hurdles today, owners have proven how resilient they can be when necessity drives adaptation.
My key takeaways for small business leaders based on this data are:
Adopt Automation to Drive Productivity – Don‘t hesitate to embed automation even if budgets are tight. The productivity benefits or staff hours reclaimed outweigh costs.
Align to Unmet Needs – Seek solutions facilitating contactless interactions, allowing remote collaboration, or enabling seamless eCommerce.
Learn Pivot Enabling Skills – Every owner should know basics of technologies facilitating adaptation like web hosting, CRMs, analytics, and especially workflow automation.
Outsource What You Can‘t Handle – Consider managed IT services, business intelligence consultants, virtual receptionists and appointment setting services. External help fuels growth.
Small businesses power our economy. The pandemic forced unexpected changes, but also unlocked potential still being realized. There‘s never been a better time to "tech up" using scalable solutions guaranteeing owners don‘t just survive, but thrive in the years ahead.
What business processes are you looking to automate this quarter? As an analytics and automation specialist, I‘m always happy to guide leaders through this journey.
