The coronavirus has seized the world’s economy and threatens economic trade worldwide. That is to say, the pandemic has forced the world’s economy to sail in turbulent waters.
The downward-facing curve of indices has affected 196 countries and that includes developing and under-developed economies as well. This becomes one part of the bad news; the bad news is infectious but so is COVID-19.
Do we need a vaccination or solution to resolve coronavirus? Yes. Also, do we need a solution for the other bad news? A big fat YES. We have certainly started with the recession.
Recession is like a reset— an opportunity to make sure that we are on a stable footing and to find new prospects.
Amid the Great Recession of 2008, Warren Buffet presciently advised, “be selfish when others are afraid,” and we have to take his advice to heart.
To sum up, you ought to manage your company, recession or not.
If you deliver a better mousetrap, no matter what your company does, the universe will hold the keys to your gates. To beat the recession, you must get smart about your business operations.
DISCUSSED BELOW ARE SOME TIPS TO STRATEGICALLY RECESSION PROOF A COMPANY:
KNOW YOUR CASHFLOW
A remarkably significant number of executives don’t even know their statistics or have a grasp on their cash flow.
Ensure that you know your figures, and build a concrete strategy and profit model for your future, including how to push or pull back your lever points.
Do not be tempted to eliminate marketing activities. Now isn’t the time to cut promotions down.
Make sure the marketing efforts proceed. If you can’t afford traditional marketing, pursue low-cost options such as social media marketing, webinars, news releases, e-mail, blogging, and newsletters.
IMPLEMENT AN EFFECTIVE WORK FROM HOME POLICY
Effective implementation of work from home policy can be quite difficult for employers to organize since this entirely depends on employees. However, if you understand the psychology that follows for instance loneliness since being stuck in isolation, worrying by watching the news and not treating it like a real job, etc, you can overcome this by implementing various ways to keep them engaged and their spirits high.
In conclusion, you need to be a part of them, not apart from them.
USE EMERGENCY FUND IF CREATED OR TRY TO CUT THE COSTS
Many businesses establish an emergency fund that could allow you to endure for a year or longer. Make sure the fund will cover important operational expenses, including the payroll for workers.
If your company has not prepared any such fund you need to understand your monthly burn rate and your cash position. Determine where you can cut costs.
SUPPORT SMALL BUSINESS – DEVISE A MUTUAL BENEFIT PROPOSAL
When citizens self-quarantine, several local firms have already lost substantial amounts of income and some states are beginning to enforce the closure. With potentially weeks’ worth of lost income, the local businesses that are so integral character of our communities may not have the margin to survive.
Choose a local business which could help you to cut off costs and help them to cover their cost.
INTERACT WITH YOUR CUSTOMER
Start to implement conversations with customers about the coronavirus. Ask them if their budgets have been affected by the pandemic.
Creating an open communication line will help you prepare if things begin to change and their resources are gone, which will ideally give you sufficient lead time to make changes internally if need be. Send out various surveys to gain insights about your clients.
In the next few days, a lot of people will be online, continuously monitoring information about the epidemic and economies since most businesses will be introducing compulsory work from home policy. Because of that, copywriting, promotional materials, advertising, etc. on your blog would be an extremely competitive benefit right now.
You just have so many hours for selling and performing services in a day. Products would help make money whilst sleeping. Plain and simple.
You need products, to develop. If you are a service provider, discover how to productize those services online. Only start with one, to keep things easy. Products come in all shapes and sizes, e-books are something that can be downloaded digitally and paid for online.
TRY AND SCALE YOUR FINANCIAL POSITION
Increase cash flow or financial savings by incorporating additional goods or services complementing what you are already selling. Yet carefully consider how much it would cost to grow, and ensure that it does not damage the reputation or image of your business.
THINK LIKE AN INVESTOR
It could be the best time for entrepreneurs to enter a new segment, or to search for opportunities in such sectors. Bear markets present incentives for inexpensive investments or for the advance in technology.
When bigger businesses withdraw to concentrate on their core offerings, ask yourself if the resources they vacate will innovate.
Could you suck up talent that would have cost a fortune before, and create a stronger team? Could you at negotiated rates buy smaller companies or emerging technologies — value acquisitions that will catapult your company to a higher level?
Both of these pathways will open routes that were not previously accessible to profitability.
Optimism above all is key to building a company in both good and poor times. Recessions are unavoidable but fleeting too. Organizations with stable foundations and long-term goals will make it through and will be even better for it.