The impact of COVID-19 on human lives is the first thing everyone should worry about. Thousands of deaths around the world have made the virus a huge threat to humanity, in many ways. One of the other ways it impacts us is the impact on global economy. The spread of the disease and restricting measures to contain it have put many businesses in frustrating situations, and even cause people to lose their jobs. Many companies look for effective ways to avoid damage, layoffs, and shutdowns. There are several useful practices that can help midsize and larger businesses to survive the coronavirus crisis.
How midsize businesses can survive the coronavirus crisis
Focus on protecting employees and customers
Companies are already implementing a work-from-home approach for their workers and
social distancing practices for those who need to be present. Essentially, ensuring safety measures for those are an inevitable part of the company’s responsibility. Strict non-travel or self-isolation policies are also in place for the majority of businesses. However, some firms will need to take more advanced actions. Although many companies will need to cut costs, it is important to consider less harmful ways to do so. If it is possible, try to avoid laying off employees, or reach a compromise that will leave both sides satisfied.
On the customer side, the main thing businesses will have to provide is good communication and support. Your customers are as worried as you are, but in this challenging time, they will remember your brand’s behavior. It strongly depends on the company’s communication strategy whether your customers will stay loyal to you, or whether you will lose a point of contact. If your services are still available, make sure to clearly communicate that you still operate, or can offer your products or services in any other convenient way for the customer. Out-of-normal situations require out-of normal solutions, so don’t hesitate to rethink and restructure your strategy.
Emergency plan and reformation
It is crucial to outline a few possible outcomes of the evolving situation, and how your business will handle each of them. Gathering with the team and brainstorming your next moves will help prepare and secure yourself in the face of uncertainty. To better understand and analyze the situation, define the most vulnerable and strongest areas of your business, and how you can articulate them to avoid damage. Re-calibrating your inventory, logistics strategy, and sales is essential to adjust to the new conditions. Monitoring how the pandemic evolves will also give businesses a helpful insight on the next moves.
Consider taking the aid package from the government
Once the COVID-19 started hitting the global economy, small businesses were the first to suffer the damage. However, many mid-size and larger businesses have also experienced a substantial impact. The ones who find it very challenging can apply for an aid package from the recently approved governmental $2 trillion stimulus package. According to the statement, businesses with 500 to 10,000 employees can take direct loans with interest rates up to 2%, after qualifying for certain requirements. In particular, the aid has to cover at least 90% of employee paychecks until September 2020.