The outbreak of the COVID-19 has put a halt to many of the businesses and business administration’s worldwide, hampering their productivity. Nationwide lockdown, social distancing and the fear of the spread of the virus have established significant impacts in the business world. Keeping the financial wheel in check has become a challenging aspect for most small scale as well as large business organizations worldwide. The diminishing revenue churn and uncertainty have taken a toll on even the startups and small businesses—the ripple effect of social distancing and shut down is impacting almost all businesses across the world. For instance, it is expected that India’s growth rate in 20-21 will reduce by 2%.
Hence, small businesses and startups must adapt to new rules and regulations to alleviate the risks and survive through the pandemic. These strategies that will help businesses do so:
Whether small or large scale business, it is imperative for the business to research the fixed, variable and actual revenues of the company. This assessment will form a clear picture of the losses and gains and also form a clear picture for further expenses in the currently disconnected market.
Feasibility of a business model
Considering that the market situation is changing every day, it is essential to reconsider and rebuild the business model, which includes the assumptions, revenues, costs, expenditure and many more. It is also important for a business to re-evaluate the sales, credit cycles, collections and potential debts.
Patience in securing investments
For the survival of a business, funding is the most crucial part. But in these difficult times, it is important not to shy away from your investors or investment schemes that are open to providing or expanding their funding for the businesses. An important noticeable aspect of such a epidemic is that the market always bounces back to normal within a couple of months. The businesses need to reach out to the already existing investors and expand their investment in the coming months.
Communication with customers
All of us are in this together. Hence businesses need to communicate the pain points and solution to their trustworthy clients and stay transparent with them. Often time, in times like these, customers empathize with the company and promise to keep up a loyal client until the situation gets better.
Engagement of the employees
Every company runs with the trust and strength of its employees. Hence it is vital to communicate the developments and pain points with them to keep them aboard and maintain the trust.
Communicate with stakeholders
Find a trustable source to communicate with the stakeholder of the company rightly. Having an honest conversation, with the entire leadership team, about the effects and effects on the business, can seed the idea of empathy in their minds and work in the company’s favour.
It is vital to stay motivated in these difficult times and help each other grow. Even though growth looks like a serious concern now, there is still light at the end of the tunnel and the situation will get better by taking necessary steps to survive the business until then.