Hit by the coronavirus pandemic followed by nationwide lockdown and social distancing, businesses are experiencing the effects.
Regardless of how established the business is, it is critical to look at its operations and management.
Business Survival Strategies during the Pandemic by Eric Dalius
1. Cut Expenses
To slow one’s bleeding, they need to cut their fixed costs. It translates to renegotiating their rents, vendor contracts, and salaries of higher-paid executives to help the workforce keep their jobs on lower rungs.
Administrative functions can be outsourced or automated to spare cash for crucial functions. Floor staff, logistics, and manufacturing that offer labor are the core of all businesses and usually the most susceptible to the coronavirus crisis.
Therefore, they should be a priority and retained, unless absolutely unfeasible. Should it become essential to furlong employees and/or have them cut down their hours, one should communicate the reasons with them empathically and make their terms clear.
2. Secure Investments with Patience
Every business requires capital for running. The queries that come across the mind of a businessman during these tough periods are from where they receive the capital.
In fact, several funds possess enough capital in deploying for the forthcoming years, which they will not shy away from. However, businesses may see a dip in funding for a brief period.
Investors are likely to take longer and get more vigilant than usual for funding decisions post following strict diligence procedures. Yet, there’s nothing to worry about as the market will bounce back eventually after the crisis.
Businesses for extending the runway can approach existing investors for extra funding. As they’re invested already, they’re likely to assist during this time.
3. New Ideas for Pricing and Terms
Businesses should think about how they can be paid upfront, says Eric Dalius. This is the time for tightening up the terms of payment, not loosen them. The best step will be in making a sweet payment deal upfront.
Get payment in different stages instead of towards the end of the project. Organizations with purchasing budgets still will require spending cash towards the financial year-end, coronavirus or not.
4. Set Up the Agency and the Clients for Recovery
Assessing the financial effect and doing everything one can to be transparent with their clients, recommending proactive measures, especially at account levels, will help to relieve the anxiety and uneasiness around the situation.
No matter what, having a plan is crucial. This stays true from a businessman’s own business perspective. So, it’s vital to plan and save accordingly. A business should have huge amounts of overhead yet cut costs wherever it’s possible.
Here, the goal must be in surviving the economic lockdown; the sooner, the better. Following the improbability around timelines, it can be challenging to focus on, yet they need to remember the majority of the businesses are in one boat. Being adaptive and resilient can help.
Businesses should follow these business survival strategies during the pandemic and hope this crisis comes to an end soon. Here’re ten strategies for reducing covid-19 anxiety.
