COVID-19 began as a global health crisis and has now evolved into a global economic crisis. Businesses around the world are trying to figure out how to weather this storm and where we need to focus their efforts. The problem of this scale would require substantial efforts from the businesses as well as the governments. The pandemic-fueled recession has especially hit small businesses. To recover from COVID-19, these businesses would need to build a connection with both our prospective and existing customers.
The world economy entered a deep recession in February 2020 itself and this global tribulation is likely to extend well into 2021. Few sectors have suffered more than other sectors. These include travel, hospitality, and food sectors. Everyone understands how severe the impact has been. Now the focus needs to shift to finding a practical and enduring way to deal with the ongoing recession. Solid recovery business plans for small businesses will have to be formulated to suit the ongoing challenges in various industries
Helping Small Business Recover from the Coronavirus
When planning for recovery, businesses would need to develop protocols to ensure that employees stay healthy once they resume their regular office hours. They’ll have to ensure a safe and properly-sanitized environment as the employees return. All workspaces and equipment/devices/systems must be sanitized to ensure that no further transmission happens.
The pandemic has thwarted the supply chains of many companies across the world. Businesses are facing dealer fulfillment problems but what’s even more severely affected is the actual transport of goods. While companies deal with the supply problems, they will also have to provide realistic recovery supply plans to their customers. However, they must not set unrealistic goals that may backfire. Also, companies will have to deal with staff shortages, should the staff still be under quarantine or recovering from any illness or any other issues worsened by the pandemic.
Clear, transparent, and timely communication with the stakeholders is vital for reshaping the business. It will also help in securing ongoing support from customers, employees, creditors, investors, and regulatory authorities. Companies need to maintain regular contact with their suppliers and customers about their capability to deliver goods and services during the pandemic and also about their recovery plans so the company can consider other supply chain options in time. The companies should ideally review terms and conditions on the contracts to identify sensitive debts to avoid any vital technical debt breaches.
The Governments of India (GoI) has announced several financial, social, and tax-related policies to support MSMEs. It’s vital to monitor the worldwide government and organizational opportunities for better support. Businesses will need to know, identify, and understand each offer of support and determine which one is more profitable for the company.
Companies around the world are trying to come into terms with the effects of coronavirus. Small businesses are in a particularly more vulnerable position. Loans may help many of them in the short run but when the crisis is over, many businesses would have exhausted all possibilities and eventually shutting down. The BRAC Commission model presents a feasible way to help small businesses by exempting them from regulations designed for large businesses. By using this approach, policymakers can provide relief that will help many small businesses in surviving the recession. More importantly, these exemptions will pave the way for new and existing small businesses leading to gradual economic recovery.
DNA Growth is a global professional services provider specializing in Business and Financial Planning. We have 10 years of Company experience and over 50 years of cumulative professional experience in executing research, financial analysis, and content development globally. We aim at helping clients with accurate and foreseeable forecasts that help them plan for the future in a better and structured manner.
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