COVID-19 is a big catastrophe that has hit humanity. It has cost the lives of so many people. Our mental health has also taken a toll during this pandemic. COVID-19 also caused a global recession.
In our drive to fight the pandemic, we have closed shops, may it be cities or restaurants. This move had a devastating effect on the economy. Now that we are slowly lifting restrictions, most enterprises affected by the lockdown still find it hard to recover.
These measures will help your business bounce back. They can also help your establishment withstand another lockdown brought about by the Delta and Lambda variants.
Before you map out ways on how to economically recover, you have to determine the extent of the damage. This step will help you identify your course of action.
You need to see numbers. This is where a horizontal analysis will come in handy. The percentages that you will see in this report will help you determine the extent of the damage.
You must review each column in the horizontal analysis report. Can you see a steady decline in your income? If there is, you must include this information in your planning. If the loss was a result of the lockdown, you should take that data into account too.
Your analysis should not be solely focused on the revenue. You must check your Cost of Goods Sold or what is commonly known as inventory. Did you order fewer raw materials? If you did, you need to review if this contributed to your loss.
You also have to review some other elements of your financial statement such as the balance sheet. When you do this, you can have a better understanding of your company’s financial position. The following questions can be answered by examining your balance sheet:
- How much money do I have at hand?
- How much more capital infusion does the business need to recover?
- Do I need a new equipment?
The last question may have a subjective answer. But if the equipment is nearing the end of its useful life, you may want to update it. If this is the case, you should consider equipment financing.
Another reason why you need to review your balance sheet is that it will help you determine your assets. It will give you a better view of how liquid your company is.
With the numbers that you have dug out of the reports, you can now move forward to the planning phase. As we have discussed previously, you have to determine if there is a downward trend. If there is, you need to overhaul your entire business model.
The declining numbers may not be a direct result of the pandemic. But things have been exacerbated because of COVID-19. In this case, you may want to focus on a certain market instead of going head-to-head against industrial giants or a more established local competitor. By doing this, you create a competitive edge for your establishment.
An article about e-commerce was published recently. It mentioned that people are leaning towards online shopping. You should capitalize on this information.
If you relied on customers to physically visit your store, you should modify your business to accommodate those who shop from home. Doing this will help you tap into a new market. To make the most out of this step, you must increase your business’s online presence.
Employee engagement has always been a source of discomfort for managers. It has tested established entities during better times. It will again do so even when your business is in a precarious state.
You can turn things around by making your team feel that their contribution is greatly appreciated. Ask help from employee engagement testing professionals. Let your workers see that their presence matters in your business. When you do this, your employees will become personally invested in your company. They will share a more positive word about your business, may it be through word of mouth or their social media accounts. This move will give you more customers and will entice good workers to join your company.
You should not stop there. Ask for help from customers, too. If you have observed that one customer particularly enjoyed their experience in your shop, then ask them to share it online.
Other than these two stakeholders, you must engage your loved ones and even your neighbors. You should tell them to visit your store.
These methods give a personal touch to marketing that traditional advertisement cannot duplicate. It will help your company recover from the pandemic-induced recession. It will also encourage economic expansion. Best of all is that it is for free.
The pandemic forced the world to its knees. But we can now see the light at the end of the tunnel more clearly than last year. With a little more push, your company will survive.