The rapid spread of Coronavirus has caused significant disruption in Businesses and communities across the world. COVID-19 is compromising supply chains, work hours, income, and demand for products and services as consumers are encouraged to avoid public gathering. During this unforeseen and unpredictable time, your businesses need support and guidance more than ever. Here are few strategies which will help your business to recover post-COVID-19.
- Be Prepared for a surge in Demand: Due to nationwide Lockdown and Quarantines, many businesses are facing Sales drop so all major Production companies have cut down their production volume in order to prevent further Financial Loss. But these shrink in demand will Result into a massive surge in post-Lock-down. So be prepared for financially and Infrastructure wise to address a High demand. Reserve capital for high inventory and little time for Inventory consumption.
- Look for alternate Sales Channel: Coronavirus has impacted traditional sales and distribution channels drastically. Traditional Brick and Mortar and E-commerce have suffered a lot due to supply chain disruption. This will lead to the birth of new sales channels. Look for alternate sales channels to widen avenue of income. Push your slow-moving/non-moving retail product to Emergency service stores for consumption.
- Work on Long Term investments: This short-term slowdown must have given you the opportunity to think on Long term investments for your business. Think about investment pertaining to Infrastructure, Capital reserve.
- Communicate with relevant Stakeholders: Transparent communication is needed with all Stakeholders as all must be affected in some ways during this time. Communicate with customers for any delay in service/Product delivery and speak to employees if there is any delay in salary disbursement. Update your creditor about your sales figure and seek help/intervention wherever required. Communicate to your supplier for any delay in payment. Also actively involve yourself in learning regulatory measures/relief that has been provided by Regulator/Government.
Plan for a more robust and Resilient Business Model: Probably this Covid-19 scenario has already made you think on how to be more resilient to address these situations, if not then think on how to practice Lean management, increase Cash Reserves and low-cost operation.