COVID-19, better known as the Coronavirus, is the worst pandemic of all times. It has affected millions of people and killed hundreds of thousands. It had led to the lockdown of entire countries. Superpowers like the UK and China have been brought down to their knees; such is its severity. Moreover, the pandemic has greatly affected the global economy. Keeping all this in mind, what might be the implications of this pandemic on your business?
Economic Impact of COVID-19
The global economy is about to suffer its biggest downfall since the Great Depression. Businesses around the world will be affected. Interest rates will fluctuate, and currencies will devalue. Your customers will jump ship, and investors will lose faith. You will have to be ready to deal with negative cash flows and significant losses. These will be caused by a variety of factors, some of which have been explained below.
Communication breakdowns based on workforce immobility
Social distancing is key if we are to “flatten the curve”. Avoiding physical contact reduces the risk of the disease spreading from one person to the other. Hence, offices and other workplaces have been forced to shut down. Therefore companies have improvised and moved their communications online.
Now, this poses various problems. Your team is a mix of people coming from different parts of the city/country. While working from home, communication channels may not be strong enough to pick up where you left off. Unstable internet connections, lack of phone signals and disturbances at home cause distractions that lead to ineffective communication.
Lack of productivity
These distractions may also have disastrous effects on your team’s productivity as well. Adding to this, a general sense of uncertainty and a generally tense atmosphere may deter employees and team members from working. You may find it hard to motivate them and may notice a stark decrease in their productivity. You will also need to be ready to efficiently and humanely deal with employees who may get sick (with fears of contracting the virus). They may not be able to work, through no fault of their own of course.
Customers lose faith in the Market
No matter how loyal your customers are, they will be hit with the financial crisis just as hard. Purchasing power will decrease, and demand for your products and services will, in most cases, fall. Unless you are producing essential goods necessary for survival, or other products and services one can use during a pandemic, your sales will most likely fall. Customers may change their preferences due to the changing dynamics of the market, so keeping them engaged and interested will be key. There are various steps you can take to engage customers better by adapting your marketing strategies to Coronavirus.
Impact on B2B companies
If your company deals with businesses as clients, you may need to readjust your strategies. You may lose many clients as the pandemic takes effect, while some you may need to help keep afloat. Collaboration will be key, as businesses will have to work together to help each other survive the multiple adversities.
However, with adversity comes opportunity. You must make sure your business is adaptable and agile enough to deal with the drastic changes happening in the current market. Here are some tips you can follow to better help your business survive, and even thrive, during COVID-19.