Challenges for companies to face the second wave of covid
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Businesses in First Wave of Covid
First Wave of Coronavirus meant job cuts, salary cuts, unpaid suppliers, rents and unpaid assets… all this, while maintaining “cash flow” in the short term, was also the setting for later events.
The impact on the market was not positive, and the speed at which it all happened made it difficult for most people to catch up. No one could have foreseen the complete shutdown, the sudden loss of cash flow, or the contraction of the business fast enough to be adequately prepared.
But above all, a new opportunity presented itself for companies to reinvent themselves and see the digital needs that would enable companies to face the covid and measure their results.
How Companies Can Cope With The Second Wave. the covid
Now we have to talk about a possible second wave of business challenges. It is not definitive and can be avoided. But – armed with foresight – we must act to avoid it.
5 steps to innovate and overcome the crisis
These are some measures we can take to prevent
- Think digital . If your business is not yet immersed in digitization, this may be the time for it. Crises are difficult, but they also create opportunities, such as reinventing themselves and knowing the company’s weaknesses.
- Carefully examine the financial activity . If your business has had problems during quarantine, you need to consider three things now:
- How to Maximize Profit Margins : Maintain strict credit controls and well-controlled expenses.
- Save the money collected and demand reprieve from owners, banks and suppliers.
- Look for areas where you can cut expenses. There may be less demand for your business. If you managed to get through the pandemic successfully, albeit with little or no financial loss, make sure you have backup funds.
- Prepare for as many scenarios as possible . The next step is to make sure that what lies ahead doesn’t take you by surprise. Modeling as many scenarios as possible to raise capital is the most important part. Planning is difficult, but businesses must do everything they can to create a buffer in their accounts.
- By understanding these different scenarios, companies can model financial consequences in times of covid and make decisions about how to allocate venture capital.
- Change to New Ways of Business . If there are new ways of working that can help you save in the long term, such as hospitality, implement them. Restaurants dedicated to providing takeaway food may find that continuing to provide this service can help make up for lost profits even after a normal business resumption.
- One thing we have learned from the Coronavirus pandemic is expect the unexpected and therefore we need a contingency plan . Only then can we learn from our experience, because by knowing what is important, entrepreneurs can deal with what comes next.
Tips for companies: measures against the second wave of coronavirus
Support and protect employees in this new world. Many companies have basic protections for their employees and customers. The companies have also activated a policy not to travel and work from home for some employees and physical displacement measures at work for others. If you are telecommuting, this Telework Survival Guide can help.
Companies in the age of covid need more communications and their digital resources. They also need to change the work rules ( telecommuting ) making remote work practical and convenient where possible. And, of course, they must protect people’s health, with measures appropriate to the workplace: positive hygiene habits, personal protective equipment, adjusted sick leave policy, everything needed to ensure health. and safety.
Monitor key indicators of how and where the pandemic is evolving and perform scenario planning using both epidemiological and economic input.
Having experienced this new way of life, consumers are reassessing their spending, increasing the likelihood that spending can shift permanently between categories and that online services can be deployed much more quickly.
Deciphering this new normal and making sure the company has a digital strategy is an important part of the job of a nerve center. Approaches such as using a portfolio of initiatives and planning decision-making in the face of uncertainty can go a long way towards creating a compass for business leaders to follow.