The Covid-19 or Coronavirus is one of the most challenging situations that humanity has had in recent years, not only in terms of health as we already know, but also social and economic, touching absolutely everyone in one way or another, and those of us who have a company has put us in front of strong decisions.
Today, the world is almost entirely stopped by the confinement measures, different sectors of the economy are paralyzed, and those that can operate are at half speed or less.
In addition, due to the uncertainty, to this is added the instability of the stock markets worldwide and the volatility of oil prices due to the so-called oil war that we have in the middle; this affects all countries, especially to those who are highly dependent on income from this resource.
This situation is uncertain, until when will it be?
We do not know, but in different parts of the world, they mention that during April we will have an idea, and there are already authorities and scientists talking that the measures of social isolation should be at least until June, I am more on the side of these predictions, and I think that will extend.
Therefore, this has different consequences, companies that are not operating or those that are at less than half speed will have to have enough oxygen (money) to support their operation for at least 3 months, either with their own capital or financing; otherwise, they will have to downsize, lay off employees or in the worst case, close.
This mixture of situations or ingredients will, unfortunately, bring an economic slowdown, which will imply a recession, leading to a decrease in circulating cash, reducing private demand, further affecting companies and affecting employment.
The outlook we have is not easy, and it will be quite hard in the short and medium-term …
Both in terms of health and economy, today’s world is different from what we knew a few months ago, so we must prepare to face it; it is not time to sit down and cry, but to gain strength and see how we fight adversity because out of problems and difficult situations, opportunities also come.
This is why we have the following recommendations for entrepreneurs when facing this new world of the Covid19 era:
Rethink your business strategy
What we had in mind at the beginning of the year as a business strategy, we must throw it away; it is time to rethink and be sure that the business strategy is configured for the new world we are facing.
A great lesson from the strategy is that you should focus your efforts, and in times of crisis, you should do it even more, so freeze or close non-essential projects and focus on what is most important to your new strategy.
It is time to close the tap, both personally and in the company, you must have detailed control of the costs of the organization, always keeping in mind that you will have to make some sacrifices, even personal.
Costs such as rent, try to talk with your landlord and reach an agreement while you are not using the office; I know businesses that have requested from no charge, up to 50% of the rental value, or you can simply propose to pay the months that you do not you used the office from the moment the situation normalizes.