08 July, 2020
Covid-19 has been an unprecedented shock in our lifetime. It has brought world to a grinding halt. People have lost their jobs; businesses have been forced to shut down and economies have entered recession. Experts are still trying to work out the impact of this pandemic. Although world has started to emerge out of the shut down and economic engine has taken few turns, but it is still early days.
What is sure about the future is that there will be a so called “new normal”. What this new normal will look like, we can only conjecture at this point. However, we cannot just sit and wait for the new normal to set in.
Businesses need to be pro-active and prepare for the new normal. We can suggest a road map for the businesses to set themselves for post COVID-19 life.
We have been talking about risk management, but it has been an area of concern for Big Businesses. Small businesses have ignored it either due to lack of expertise or due to lack of resources. The quantum of impact has also out scaled the risk models as few could predict the speed and scale of the impact. The last few months have given us very valuable lessons. In fact, it has been a crash survival course.
The first lesson we should take from the last few months is that every business small or big needs to have a risk management strategy in place for extreme events like this.
We have been used to certain ways of doing our business which have been developed over long periods. Face to face dealing is still the dominant way of doing business. Look and feel of the product and other party gives us confidence to buy or sell. Although some industries have done very well to shift to online platform, but many rely on physical presence. The distance rules and limit on number of people is only going to increase costs/prices which in turn may reduce the number of customers. This will be particularly challenging for hospitality industry.
The second lesson is not only to find ways and means for online service and product delivery but also find ways and means to make virtual stores, shops or offices where customer feels as close to physical store as possible.
With limit on number of people at one place and social distancing the businesses need to develop very efficient scheduling mechanisms to accommodate maximum number of customers in each working day.
Every business will have to tailor itself to the new realities of post Covid-19 or it may be at risk to lose its customers to more agile competitor.
The third lesson is formulating a new working model needs comprehensive redesign with new cost structure and model.
The businesses need to anticipate the post COVID-19 new normal and predict customer behaviour in the changed environment of social distancing. Businesses need to understand changed customer expectations and demand and need to find strategies to stimulate the demand and differentiate from competition early to take advantage of the new normal.
Every business needs to develop a new business model and plan to address these sudden changes in market dynamics.
Businesses need to innovate and innovate fast to remain relevant in the changed environment. They need new products, services and channels to survive this sudden change in our lives. The time is running out as soon government support in the shape of cash boost, job keeper and job seeker will run out and survival of the fittest will be back. Businesses need expert support to navigate through these unchartered territories and we have experienced team of finance, business, tax and IT persons to help you to set up for post Covid-19 environment.
Please call—– to book an appointment to discuss your specific needs.