Coronavirus or COVID-19 poses an important threat not only to human health, but also to the business world. Many small businesses demanded that governments temporarily shut down restaurants, cafes, cinemas and many other businesses, due to public health risk, and in the earnings of these companies; caused a sudden drop in products or services, shortages of labor and supply cuts.
As part of a comprehensive risk management strategy, there are now a number of things you should consider doing; getting your job ready for COVID-19, getting your job better than just getting rid of the best crisis.
As the coronavirus spreads, many small business owners rethink their strategies and change the way they work. They respond to a drop in revenue as customers stay at home, reduce their purchases, or demand that companies help protect against the virus that has infected over 400,000 people worldwide, and some small manufacturers and retailers who were first interested in spreading the virus while stopping Chinese exports, even though Chinese factories reopened, they are still struggling to receive product shipping.
Businesses also feel the economic uncertainty created by the virus and the turbulence that occurs on the stock market. Many small businesses stopped asking for investor money to finance their planned expansion. They are aware that investors are reluctant to give money to small companies in an unknown environment, such as how widespread the virus will be and how it will damage the economy.
In some businesses, the spread of coronavirus forces its owners to change basic working methods. This currently forces businesses to implement different strategies.
The pandemic forced businesses of all sizes to change their business structure – for instance, business travel is canceled and meetings are held through video conferencing. However, small businesses can be particularly vulnerable to changes in consumers ‘and other companies’ spending. The suspension of public meetings, including cancellation of meetings, social events and NBA games, hurts companies that provide food, equipment and services for hosts and event organizers, and they are often small businesses.
After the virus was first reported in China, many factories were closed in January or February to slow its spread. Some have reopened, but the flow of goods is weak, some US companies are struggling and their owners are trying to decide their next steps.
Yungi Chu is concerned that his employees may have to cut their hours down. He can’t get most of the headphones he sells on HeadSetPlus.com website, he can’t reach some of his suppliers, and he hears that others are working with skeleton teams.
Chu is trying to plan his strategy against many unknowns. If the recovery in China takes longer, it may be necessary to contact a manufacturer in another country, but this is time consuming and expensive.
In this situation to pay their expenses is getting harder, so Mohab Ayoub Algedra Interior Design Company’s CEO gives some advices to apply together on that crisis, hence let’s we can save our business from Covid-19 with minimal damage, let’s have a look at these suggestions:
1- Follow official information about COVID-19 and current information that public health authorities can direct.
2- Update your financial statements
3- List possible impacts of COVID-19 on your business, estimate and improve financial impact
4- Check financial health at your business
5- Redo your budgets with new assumptions
6- Take action now to improve cash flow
7- Increase online sales
8- Determine an emergency plan
9- Identify employees with critical skills for your business and make sure they can continue working.
10- Perform a reality check on your business
11- If you find yourself in financial difficulty, get early professional advice.