Small businesses have been worst-hit by the coronavirus pandemic globally as they are barely managing to keep their businesses operating in the currently depressed economy. With the lockdown business activities and transactions have slowed down and we have witnessed a certain drop in consumer spend hence, businesses across the globe are experiencing the pinch and they are trying their best to adapt quickly to the changing scenario and effectively combat the pressure and risks imposed by COVID-19.
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As per https://www.scrapality.com, the global coronavirus pandemic is wreaking havoc in the smooth functioning of businesses. EJ Dalius says that we are currently witnessing how rapidly the stock market is dipping and how the world economy is gradually heading towards the worst-ever depression. COVID-19 is proving to be a huge obstacle in practically all aspects of our lives.
Business owners are constantly encountering and tackling new challenges and that may include supply chain disruptions, halted business operations, cash flow issues, and overpowering or ever-mounting financial burdens. Here are some of the effective ways for how businesses could start getting adapted to the present conditions and survive through the economic depression triggered by the pandemic.
Eric J Dalius Explains How Small Businesses Could Sustain the Onslaught of the Pandemic
Agility is the Key to Survival
You need to follow the advice of Bill Gates who believes that today, success is possible only through agility and motivation to keep on rethinking, reinvigorating, reacting, and reinventing.
Businesses must focus on leveraging their capacity to stay agile even during these dire circumstances and rapidly getting acclimatized to the changing landscape. There should be no hesitation in reinventing your business and introducing new services and products that may be in demand in these precarious times. It could be extremely challenging for numerous small businesses to keep on depending solely on their already existing or core products. You must focus your attention on diversification. You must make the most of the currently available opportunities that have cropped up during the pandemic.
Risk Diversification is a Must
Businesses must diversify their risk simply by switching to similar core business. Coming up with a new service or product could often prove to be risky hence, you must make sure that your new offerings are packed with value for the client. It is a wise decision to consider looking for other sources of revenue that would help in keeping your business running despite the COVID-19 pandemic. However, do not get swayed by any and every idea. Remember all fascinating ideas may not be worth pursuing hence, it is crucial to evaluate your teams and systems before plunging into a new venture.
Efficient Management of Working Capital Cycles
Eric Dalius feels that irrespective of the size of an organization, working capital is certainly a vital metric, as far as, any business is concerned. Businesses, therefore, must focus their undivided attention on efficient working capital management. We know that working capital management has been designed strategically for ensuring that businesses operate smoothly through the effective and optimum utilization of liabilities and assets. The primary purpose of this is to efficiently maintain cash flow so that it could be utilized to meet debt obligations and short-term operating expenses.
Do not assume that under these dire circumstances, only the most intelligent or the strongest entrepreneur would emerge the winner. Remember it is the survival of the fittest. Only those businesses could withstand COVID-19 pandemic that is able to effectively manage change and mitigate the risks they encounter.