COVID-19 has become a global phenomenon, developing with unparalleled pace and size. No business is exempted and no industry will be an exception. Global businesses are coping with the immediate effects of COVID-19 because both their production and supply chain processes are being disrupted and the processes of their customers are facing similar challenges. This has an exponential impact across the entire distribution network.
COVID-19 comes at a time when companies, in their main markets around the globe, were already facing severe economic turbulence with clear signs of recession. The COVID-19 crisis adds yet another vast layer of complexity to an already enormously challenging situation.
It is time to act while planning for the future
Companies now need to act to ensure the integrity of their operational processes and protect their people as they prepare to roll up their operations and future post-COVID-19. And while some businesses have begun to respond to the ongoing situation — taking steps to protect their workforce, supply chains and operations — not all of them have. And a few are sort ways to face the challenges and sort ways to combat the situation post-COVID-19 and come to terms with the new normalcy such as social distance and self-isolation.
So how can we manage the situation?
Because of the sector’s scope and complexity, there is no ‘one-size-fits-all’ approach to the challenges Companies face. International operations rely on global supply chains that are under tremendous strain, while various regions and industries are responding to the COVID-19 crisis in different ways.
Continuity and focus are at the centre of business right now. The long – term impact on supply chains is overshadowing anything that most global companies ever have had to address. And now businesses need to ensure the most sustainable production system possible while protecting their workforce. For this, companies need to deploy a rapid response team. These teams can quickly adjust operations and carry on with the response cycle.
Few Survival strategies for businesses post COVID-19
Touched by the COVID-19 recession coupled with social distancing and a national shutdown, companies are experiencing massive effects no matter how well developed they are and they have to look again at how they handle and run their business, including revisiting their business plan. Due to reduced sales turnover and general instability in the global financial system, it has become difficult for most businesses to keep their economic wheels spinning over during the lockdown period.
The impact of start-ups or small companies will, sadly, be even more severe because they have relatively scarce cash reserves and a limited margin for handling abrupt slumps. The cumulative effect of this shutdown would have a significant impact on world economies as it affects all business sectors resulting in low revenue generation due to a potential standstill/slowdown in product and service sales. So start-up entrepreneurs will have to adjust to a new set of rules during these testing periods and be aware of the following aspects to reduce risks and withstand the uncertainty caused by the impact of COVID-19.
Make plans for next few financial quarters
As it is difficult to guesstimate how long this epidemic will last, preparing for any circumstances is necessary. Revisiting the sales strategy — selling online or in-person — can be a smart idea. Analyze whether marketing expenses need to be cut or scale-up. If the pandemic’s effect continues for a year or more, some serious reconsideration would be necessary. Considerate companies would need to strategize, collaborate and act. A review of the sales revenue targets and product schedules along with a new operating plan will be needed. In that situation, businessmen and representatives would have to keep contact with their investors and workers as transparent as possible
Reconsider your business model
Taking into consideration that the market shifts every week, it is essential to reconsider the business strategy and reassess our assumptions as to where the company stands based on sales and cost. It is also a critical time for monitoring existing financial and cash flow indicators. Beware of what the pathway is. Companies need to determine the impact of future orders, payments, credit intervals and possible debts.
Assess your expenses and revenues
Businesses need to perform a fair analysis of their fixed and variable expenses as well as the current revenues during this pandemic. This appraisal will offer a straightforward picture of where a business is financially placed and help entrepreneurs prepare ahead in the current disconcerted marketplace. Companies can continue using this technique even when the pandemic effect settles down.
Secure your investment plans
Every company needs capital to run and the problem that crosses any entrepreneur’s mind during these tough times a trusted capital source. Investors may be more diligent and can take significantly longer to make funding decisions. Existing investors can also be approached by businesses for additional funding. Because they have already invested, they are more likely to help out during this time.
Transparency with customers
All are together in this, and so the best way is to remain transparent with your customers about what your company is going through. As long as communication is open, clients will empathize with the businesses facing a crisis. Communicate with clients to consider their understanding of the service you are providing.
Employee management
The team is counting on you to keep them up-to-date on every development. It is your duty as a mentor to keep teammates informed and connect to them via the video conferencing resources available. It is really important to maintain high morale within the team and acknowledging the overall mood inside the remote workforce.
It is important to stand together in these tough times and to support one another in every way we can. This is also the time to realize the gravity of the situation and to make it favourable for the company is all that matters to enable it to sail smoothly in these challenging times. Stay safe, and stay healthy. Just remember, it’s the call of time that saw the rise of some great initiatives. Like all difficult situations, this too shall pass!
