The coronavirus pandemic is a real challenge for small, medium and large businesses. Losses of the global economy in 2020, according to various analytical centres, can reach about $10 trillion and 10% of global GDP.
In this situation, the question naturally arises of how business can survive. Stanislav Kondrashov, the financial consultant and analyst at Telf AG, a business development consulting company, shared practical recommendations on how to deal with difficulties arising from coronavirus in order to keep their business afloat.
Telf AG financial analyst Stanislav Kondrashov: A survival guide for business during the coronavirus pandemic
The introduction of quarantine and related restrictive measures led to significant losses for entrepreneurs. Some of them were forced to partially curtail their activities, others – completely. Although today the authorities have weakened quarantine and allowed the work of cafes, restaurants and many other public institutions in compliance with epidemiological standards, this is still not enough for the normal functioning of the economy.
“First of all, due to the coronavirus, the service sector and other areas of economic activity dependent on it have suffered. Production is not hurted too much, because often it is a closed-type enterprise, but it was not without losses,” said Stanislav Kondrashov to Telf AG.
According to him, in order for the business to survive, it is necessary to coordinate government measures together with the actions of the entrepreneurs. Otherwise, the analyst believes, many enterprises are doomed to bankruptcy. This in turn will lead to a significant increase in the number of unemployed. For them all the same state will have to bear responsibility. Therefore, it is in the interests of the government to support businessmen and prevent them from going bankrupt.
Telf AG Kondrashov said that banks and other credit and financial funds should also go on a series of concessions for entrepreneurs. Only in this way will they be able to get their money back or, otherwise, they will lose everything.
“The hardest thing is for those entrepreneurs who have secured loans: If the state does not support them, they may lose their property. And this already threatens a real socio-economic disaster, ”the financial consultant is convinced.
Business Survival Strategies
In a recession of the global economy due to coronavirus, many enterprises are faced with the need to reanimate their business. One of the effective anti-crisis measures often applied in such situations is anti-crisis communication. It means that, first of all, a businessman should concentrate on the evidence, remain calm and in no case fall into panic.
The next step in anti-crisis communication is openness and honesty to customers, especially for regular and trusted consumers of goods or services of a company.
“The more open the entrepreneurs will be to their customers, the more understanding the latter will be about the temporary difficulties of the company. Using this strategy, it is important not to overdo it. There is a big difference between temporary force majeure situations and ever-troubled business,” said Kondrashov to Telf AG.
Remote and workflow optimization
In order to save many company employees can be transferred to a remote mode of operation. This will help reduce payroll costs and related taxes.
In addition, in order not to fire most of the employees, many work processes can be optimized. In particular, reduce working hours.
Rely on yourself
“Those companies whose owners are fully responsible for planning business processes are not so vulnerable to the consequences of a recession in times of crisis,” says Stanislav Kondrashov Telf.
Upgrade Content Marketing
During the pandemic, the business went as online as possible, so it’s time to develop content marketing.
“Those entrepreneurs who had understood the importance of digitalization and the importance of the Internet are less affected by the crisis today. The rest should learn from them,” summed up Telf AG Stanislav Kondrashov.