With the Coronavirus being declared a pandemic, businesses across the globe are starting to feel the financial impact as people’s activities have halted worldwide. Stocks are plummeting, and events are being cancelled with no end in sight until a cure is found for the virus.
As more people spend their time in quarantine and isolation, businesses should remember to adopt some recession proofing measures keep operating in a sustainable manner during this crisis. Here are some tips to help with your personal and business situation.
1. Purchase stuff online
Online marketplaces with direct to consumer (D2C) business models have seen an uptick in their popularity recently. People have been purchasing more products online to avoid going outside and exposing themselves to unnecessary health risks. D2C businesses offer the advantage of delivering products directly to buyers without requiring them leave their homes.
The option of receiving home delivery has always seen as convenient in the past, but it has now become a necessity as people work to avoid stepping outside. Direct to consumer business may have become a lifesaver in the present day and if you can, support local businesses.
2. Don’t sell your stocks
The DOW and Financial Times Stock Exchange have dropped 31% and 34% respectively since the crisis became apparent in the middle of February. This has prompted many people to sell off their stocks and investments out of fear that markets will continue crashing.
These are uncertain times, and many people can’t be blamed for doing what they feel is the best option to keep their wealth and investments intact.
While some industries have felt the impact of the virus far more than others, it’s best to remember that the recent drop in stock value is only a short-term phenomenon. Your stocks will continue to grow in the long-run and getting rid of them at the current time would be unwise.
You should also avoid exposing yourself to news and speculation around the economic crisis, as this could whip up unnecessary fears and cause you to make irrational selling decisions. Important financial decisions should always be considered with a level head.
1. Sell stuff online
Many people are feeling the pinch as businesses and offices close (sometimes indefinitely). For workers in many industries, staying at home means losing money and watching their standard of living suffer. However, as pointed out earlier, online marketplaces are seeing an uptick in business from people purchasing more products online.
Sellers on online marketplaces like Amazon have reported more product sales in recent weeks. Becoming an online seller could help you make up for some of your losses from the business and office shutdowns.
However, this is more of a desperate last resort for most people. Running a business usually involves stepping outside and interacting with others. Even an online business could involve some level of contact with the outdoor world.
If you do opt to become a seller, be sure to pick a product or a business model that minimizes the amount of time you have to spend outside.
2. Introduce Contactless Delivery
If you are in the service and eCommerce sector and deliver food or other products, then you can also introduce contactless delivery as part of your business operations. This can reassure your customers that you prioritize their health and safety while still managing to make sales.
Make sure you provide your delivery driver with everything they need to do their job without compromising their health. This includes face-masks, gloves, and any other personal protective equipment that you deem necessary.
Remember, letting your employees know that you care about their health is necessary for boosting their morale during these tough times. You can also arrange for your delivery driver to work specific shifts and notify your customers about any late deliveries because of the pandemic.
3. Allow Employees to Work Remotely
Instead of shutting shop completely, you can try and introduce options that allow your employees to work from home. Remote working offers several benefits. Firstly, it allows you to continue operating your business without forsaking the health of your employees by forcing them to travel amid a pandemic. Secondly, it lets you cut down on operating costs such as power bills. Thirdly, while you may not be able to operate at full capacity, remote working allows your employees to remain productive to a significant extent. This is necessary as it helps you generate some form of revenue that can keep your business moving along.
Streamlining work from home operations may be difficult in the beginning, but if you keep at it, it will become easier. It may also be mandatory for your employees to work remotely if your city or state faces a lockdown to control the pandemic. You must be prepared in advance to deal with such realities.
4. Renegotiate Contract Terms
If you have taken a loan from a bank, then you can renegotiate the terms of your contact and ask your bank to defer interest payments on a temporary basis. Meet with your loan officer and explain your operating constraints due to the pandemic and why you may not be able to meet your obligations. Given how every business is seeing a decline in productivity at the moment, your loan officer is likely to take your request into consideration.
If you are renting office space, then you can also ask your landlord to extend the payment period for your rent. As long as you have made timely rent payments in the past, your landlord should be willing to accommodate you.
These recession proofing measures can help you cut down on your operating expenses and focus on enhancing the productivity of your business.
The Final Word
It’s difficult to say when or if this viral outbreak will come to an end. People should remember to work together in times of crises rather than adopt an “every person for themselves” attitude.
The Coronavirus is likely going to continue impacting the lives of billions in the near future, so our best bet is to remain proactive and play our part in reducing the spread of this epidemic. Businesses must also adopt recession proofing measures to minimize the damage that is likely to result from this pandemic.
For more information about bringing your business online or strategy planning, contact our team at [email protected] or 9546332963. Our offices are open now more than ever to assist the public.