Impact of COVID 19 on Business & How to overcome it. A frequent question on the business table.
No wonder every business is suffering. To cut the loans & load. Many businesses have shut their branches. Wonder what small scale business must be facing. Disastrous to even think. Because of COVID 19. Many industries including medical firm. YES! During COVID 19 crisis. Medical firm is in profit. This is our assumption. Partially correct but wrong. Why?
The case study shows. Many pharmaceutical companies have come to a closure. This is because of the lack of purchasing. Many medicines are not in use due to COVID 19. Hence the manufacturing process is in vain. And the cost of manufacturing is lost.
The point here is this is the exact situation industries are facing. And the question is How to overcome this major problem. In this article, we will see what are the other impacts of COVID 19 on business? What are the strategies we can use?
Impact of COVID 19 on Business & How to overcome it
As health concerns are increasing every day. It has become essential for authorities to call for a complete Lockdown. However the decreased GDP of countries. Has now again forced the authority to adopt new normal. But the period between Lockdown and Unlock has so many disheartening stories to tell. Many people lost jobs because their firm had to shut down. Similarly, this lockdown linked with small scale businesses also.
Cash Issue’s and shortage
Online survey shows results that more than 55,000 people across the globe are unemployed after COVID 19. We have no data and information about so many people who haven’t participated in the survey yet. Initial stages of COVID 19 have been hopeful. Hopes that it is about a month everything will be back on track soon. Well, everything is. But not for everyone. More than 5,000 small business were shutdown. Shockingly in initial stages only. Because less than 75% of businesses had no money. Leftover was insufficient for even one month. Rest of the money they had was already finished in manufacturing. Goods can not be supplied because of complete lockdown. Neither offline nor online. Online business is however trying to come back stronger. But offline business have to struggle alot.
In case COVID 19 lasts longer than December. Or we don’t crack the vaccine formula. 40% of the business industry will vanish. And you can count good and reputed ones also in the list. What will happen to GDP then is a other nightmare.
But the solution here is to apply for available loans. We do not suggest you take a sack of burdens, in case you have to pay for other loans and bills. Though seek help from Small Business Administration (SBA). It is an organization which is helping small business. They have taken some great initiatives for COVID 19 crisis also.
Stress for a small business is nothing new. But in relation with COVID 19. This has been a do or dies situation for small businesses. It doesn’t matter how many people lose their life. Some people take everything lightly. Lighter than the butterflies weight. This creates frustration and anger for owners. After all, safety is their prime concern in 2020 and some customers have been stubborn not to wear masks and gloves. There have been several reports stating. People refused to wear masks because they felt suffocated. Then stress level increases for an owner if their employee or they themselves catch the virus. These concerns sound stupid but are real problems of 2020.
Well this is a most basic and important thing. Taking care of your mental health should be priority. Not because your business is at stack. But studies shows people having normal mental state tend to take better and good decisions. And this need not to be mentioned future business of any industry needs good decision making leaders. So seek help from family and doctors if stress and concerns are not lessening.
Small or large scale business. Every type of business be it online or offline is facing a reduction in revenue. Let’s take the example of a small cafe. Small cafe has to reduce its seating arrangments for social distancing. Suppose their income is 10,000/day for 50 people seating arrangment. And about 100 people visit them everyday. So they will reduce arrangments to half that means 25 seating arrangments. Due to COVID-19 people are already avoiding outings. A massive reduction in their income can be easily spotted. Even if you have another business. The fact people are avoiding outings make it difficult for a business to survive on board.
Survey of May 2020 resulted as 69% of businesses are facing gradual decrease in collecting revenue.
You can overcome this situation as well collect the lost revenue. Start a feedback system. Ask your customers about their experience. This best way to be appreciated and collect information about where you are actually lagging behind. After all whatever service you provide. Your priority is to serve customers according to their choice and comfort. Read and have analysis of things you are lacking. Then plan according to that. Also you can make your customers feel safe: You can take orders online and deliver them at door-step. And use contact-less payment options.
Supply chain difficulties & constant hindrance
Ever thought about travel agencies. Or sectors which are totally based on import and export of goods. Well, many industries are facing hindrance. Because the goods they want for manufacturing, development and selling. Is now not available to them. Even if it is available the number of goods is insufficient. Causing hindrance between manufacturers, sellers and buyers. Even Amazon faced this situation that too at a crucial point where everything including grocery went online. For your better understanding. This whole scenario means you more items are sold out. And less item is supplied. Resulting in late delivery.
The option you can use is to communicate with your regular suppliers. Even if the supply is reduced you should first determine and understand how much requirements do you have. Business strategy plays an important role so make sure to analyse buyers and requirements before communicating to suppliers. Buy supplies which are in demand first. In case you are not able to meet your requiremnts add new suppliers as well. At last be open and truthful to your customers. If supply is not available to communicate with your customers with truth. Every business runs on trust. And if possible try to create a database of your monthly suppliers bills as we as supplies they have provided. This is a great way to understand how long supplies left will work. And hence you can start getting new supplies on time.
Concerns about Second Wave
Concern about the second wave is something not only business but consumers are triggered about. Re-opening business and putting a lot of money in providing safety and attracting people to come back to you. And bummer second wave forces shut down again. This is something which is responsible for most of the closed business. Many businesses are triggered by the fact that the second wave might force them to shut down permanently. But closure isn’t the solution. If your business is able to stand right now. You are making mistake worrying about the second wave. Second Wave is a concern but you have solution right in front of you. Your worries are your solutins.
Remember the time when the first wave hit. And everything was closed. What main difficulties you have faced. You were not prepared at that moment but you can prepare yourself now. Make improvements in your e-commerce site and payment options.
The ultimate solution
The ultimate solution we would suggest for “Impact of COVID 19 on Business & How to overcome it” is moving online. If people do not want to reach out to you. You should reach out to them. Anyways moving online is the best option. You get the chance to grow globally and earn from different part of the world. Online business has so many advantages. Also, people for avoiding contact and social distancing are preferring online source. What will make your local customers happier than knowing they don’t need to visit you. They just have to select and pay. Advantages of online business are as follows. Do read them.
- A global market is a place where you can buy and sell goods globally. You do not get exposure to global market offline.
- Suppliers are tied up more with online sellers. As a business online is working more they have somehow set their priority.
- You can collect extra revenue once you are settled on online and start getting attention.
- You need not stress out for employees catching the virus. Online work can be done through a computer or phone staying home.
- Since the attention of consumers is online. Suppliers to buyers everyone is online. Revenue lost can be easily made up. As more consumers are online they will become you, buyer, anyhow.
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