The COVID-19 pandemic is still on the rise, and the disruption continues. It has changed the lives of almost everyone around us. Now it is 2021, and the world is suffering from the third wave of COVID-19. As the pandemic continues to evolve, business owners need to rethink and reconfigure their businesses for a completely changed world.
A common question that most people ask in today’s world is, What are the significant challenges that businesses face due to COVID-19, and how can business owners overcome those challenges?
In an interview with Abdallah Al Abdeen, an Entrepreneur and a Social Media Influencer. In this interview, Mr. Al Abdeen discussed some major challenges that most businesses are facing due to the Pandemic outbreak. In the end, He will share some tips for the business owners that they can adopt to make their business survive through these tough conditions.
COVID-19’s Negative Impact On Businesses
Before we move to our main topic, let’s discuss the negative impact that COVID-19 had on businesses in the past few months:
● Due to the Pandemic outbreak, almost 70% of startups had to terminate their full-time employee contracts.
● 40% of startup businesses are suffering from an economic crisis. They can only run their business for 2-3 months under current circumstances.
● The overall GDP decreased to 5.2% in 2020, which is a great global decision in the past few decades.
Business Challenges Due To Covid-19 Finding New Customers
With the Covid-19 outbreak, the lockdown has been implemented in different areas of the world. People are forced to stay in their homes and spend most of their time indoors with their families. For businesses, it is challenging to find new customers because even if they open an outlet and do a lot of advertising, 80% of people are staying at their homes, so it becomes a challenge for them to survive in the market.
Retaining Existing Customers
Under current circumstances, retaining existing customers is as difficult as finding new customers. The reason is also the same here. In the past few months, shopping trends have changed a lot. People now prefer to stay at home and get everything delivered to their doorstep. The trend of online shopping is at its peak these days. So, businesses that do not have any online setup need to think about it; otherwise, their competitors will grab all their existing customers.
Cash Flow Shortages
The worst thing about COVID-19 is that no one knows how long it will go. Now it has been several months, and even the most successful businesses are now facing cashflow shortages. Although some business owners made preparations for emergency situations, no one knew that this pandemic would last this long. If you are a business owner and are suffering from cash flow shortages in your organization, consider applying for different types of available loans. It will help you to survive in a tough time.
Decreased Revenue
A drop in revenue is another challenge for businesses due to COVID-19. It could be due to several reasons. Suppose you opened a restaurant, but the number of customers decreased dramatically due to social distancing
measures, or maybe you had a brick-and-mortar restaurant, and you didn’t focus on taking your business online. According to a survey done in 2020, 60%-70% of businesses saw a general decrease in their revenue.
Owner’s Stress and Anxiety
If you are running a business, then you must remember that it is crucial to have a calm mind no matter how bad things are. If you start taking stress under challenging circumstances, then it will only affect your efficiency; it will also affect the efficiency of your employees. Due to COVID-19, a lot of businesses were shut down because their owners weren’t able to handle the stress and anxiety, and their businesses collapsed.
Abdallah gave us so Tips To Make Your Business Survive Through Covid-19
If you want your business to survive through this pandemic, then you need to adapt and adopt; otherwise, you will be left behind. You need to understand that the behavior of consumers is completely changed now, and we cannot return to pre-2020 conditions ever again. So, I will tell you some steps to pivot your business.
1. Research Customer Needs
The customer needs and requirements are continuously changing these days. So, dig down deep for the needs of your customers. Communicate with your best customers and do surveys with them to identify their changing requirements.
2. Develop Flexible Workforce
Right now, the focus of most business owners is to increase their cash flow and reduce the payroll demands. The best way of doing this is by outsourcing and hiring contractors. By doing this, you can reduce your workforce on payroll and hire contingency employees. You only pay them when they do any work for you.
3. Map Out Your Supply Chain
Your business might be facing some logistical limitations. So, map out your supply chain demands to plan and manage your work accordingly.
4. Stay Transparent
Make sure that all your communications with your customers and employees are transparent. You have to develop a way of communication that is clear and optimistic under current challenging circumstances. Even if your employees are working from home, everything should be transparent and systematic.
5. Digital Transformation
If you want to outsmart your competitors and make your space in the market right now, you have to focus on your business’s digital transformation. Start investing in digital platforms, analytics, automation, and integration to streamline your business operations. It’s the right time to shift your business online. It will not only increase your profitability but will also help you to perform better than your competitors. As discussed earlier, consumers now prefer to shop online from the comfort of their homes. So, make a strategy today or hire a professional to help you take your business online.
