The current pandemic crisis has a far-reaching impact on society. For one, businesses are already in tiring times. With global trade suspended and businesses coming to a halt, economies will falter. If businesses do not adapt fast enough to the current circumstances, we will see companies bellying up.
In order to strive despite the pandemic, here are some of the ways on how businesses are coping with the current pandemic crisis:
1. Coronavirus Response Act
To respond to the economic impacts of the pandemic, as mandated by the government, companies should follow the Coronavirus Response Act.
This act will help businesses provide paid leaves, free coronavirus testing, unemployment benefits, and food assistance to employees of gravely affected businesses due to the pandemic. This Act takes a ton of weight off the shoulders of many businesses.
2. Digitalisation and Remote Work
Due to social distancing and quarantine measures, most offices remain closed, forcing employees to remain at home. This is why businesses are coping by way of digitalization and preparing for remote work. Thankfully, with the use of our technology and new apps today, this has been made possible for many companies.
Here are some ways on how businesses are adapting to digitalization amidst the pandemic:
- Communication and Collaboration: Enabling communication and collaboration remotely is vital for businesses to continue working. That’s why businesses have added communication and collaboration tools in their programs for the employees.
For instance, many businesses have been using Microsoft Teams for collaboration and communication. This platform enables a thread-like conversation among the organization. It also allows video conferencing within and outside of the organization, which is good for meetings. Businesses can also integrate a bunch of apps, such as Trello, Adobe Sign, Zoom, WebEx, and more, for project collaborations.
- E-Commerce: With most stores closed, businesses resort to e-commerce to sell goods and services. With the help of relevant apps and social media, businesses are coping by posting their products and services online. Once the online payment is confirmed, businesses can deliver the products using delivery services.
Businesses can do this by selling on Instagram, Facebook, Amazon, AliExpress, eBay, and more. Some have even started building their own websites in order to sell and reach people online.
Nowadays, one of the challenges of businesses is having good cash flow. With the business world coming to a halt, payments from many consumers are also being delayed. Because of this, it has caused a dent in the cash flows of many businesses.
One of the ways businesses cope with this is by applying for short-term credit facilities from banks to bridge the funding gaps of the company. Another way of coping is by cutting down on expenses, especially with marketing and events, to keep the cash flow stable.
Because sales are moving slower with the quarantine measures and lockdowns, your raw materials are also not getting converted to goods for sale, resulting in too much inventory. Usually, suppliers grant credit terms for the business. With the slowdown in the economy, businesses have been renegotiating credit terms and asking for extensions as the world comes to a halt.
4. New Normal
It may be a long time before businesses can return to the way they are usually running or operating. Until there is a vaccine for the coronavirus, the world will continue on the new normal. Because of this premise, businesses need to plan for their own new normal to thrive for the following months.
This new normal might include a pivot in their business models. For instance, gyms and fitness studios will not be allowed for at least a few more months. In order to be able to operate, fitness studios have pivoted their business model to provide online classes or even bike rentals for their students. This way, instructors can still earn by teaching online.
The new normal also includes companies having extensive safety and sanitary measures. For some companies, the skeletal force of the business still needs to go into the office. Because of this, they have required everyone to wear face masks, have temperature tests, social distancing, and alcohol.
With the government asking people to remain home and have their businesses closed, businesses need to face difficult decisions, including a pivot in their business model, in order to survive. Given the ways listed above, you might be able to apply those to your business to keep it running.
In this incredible crisis, every entrepreneur needs to do anything they can to protect themselves, their employees, and their businesses.