Here’s How Company Can Survive During COVID-led Crisis: BEx Guruwaar

The webinar unveiled important segments and tips that the entrepreneurs are overlooking in this dire situation
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

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  • Apr 03,2020
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  • 15 Mins Read

In this disease outbreak, businesses have temporarily closed off their operations, especially physical ones fearing community transmission. By ceasing the congregation of workforces in office premises, organisations have opted for a new normal that is, working virtually.

The companies are now chasing targets virtually and celebrating achievements of targets virtually within teams. This has emerged as a novel experience for the companies now. To help entrepreneurs understand the economic impact and what is new normal, BEx Guruwaar organised a webinar with Mr. Ratish Pandey, ActionCOACH India. 

The webinar unveiled important segments and tips that the entrepreneurs are overlooking in this dire situation. The last forty-five days have changed the Indian business ecosystem, the current situation is quite similar to the financial crisis of 2008. To tackle arising problems, business  owners need to work out on key areas: 

Communication 

When businesses are running virtually, it is important to have constant communication between company owners and employees. 

"The more communication, the better it is. It is vital to keep communication clear, transparent, crisp and precise. The entrepreneurs should connect with teams and inform them where their business stands and what they are trying to do with it," Pandey advised. 

The entrepreneurs should not keep any information to himself. Delivering 50 per cent or 70 per cent information would not help as employees are sensitive and in these times, they become hypersensitive. 

In a similar vein, Pandey suggested entrepreneurs to communicate with customers. The company should tell customers what its plans are, and connect with them. Such communication aids customers in knowing the company.  

Reinvent Your Product 

During this lockdown, if a company's target audience is impacted adversely, then it is a cue that the company needs to originate another product to survive in the market. In the last financial crisis that happened in 2008, only one bank in the US withstood the crisis and grew immensely. It was Citi Bank whose assets grew significantly during that time. 

Through this example, it becomes clear that the companies presently need to slightly change their course and reinvent their product so that it can help customers in need. 

Find an Alternative 

In this global financial crisis, it is imminent for companies to respond appropriately. There are almost three to four responses to such situations. The first significant response is cost-cutting wherein the entrepreneur can check profitability of the company and accordingly, lay off underperforming employees to reduce costs. The companies employ various methods to trim their cost while opting this approach. 

The second important response is a pragmatic approach, which gives rise to offensive and defensive strategy. These strategies are important to tackle this persistent slowdown. 

If Serving Offline? It's Time to Come Online 

If a company originally works offline and its offerings are also delivered physically. Then, it is time for it to make use of technology and start serving online through virtual platforms. By going online, the company will add more customers in its share. 

Create Work Schedule with Employees Virtually 

When working virtually, the entrepreneurs have to create schedules and set goals accordingly. During online meetings or conferences, they need to ensure 100 per cent participation of the employees. 

In addition, the businessmen should also search for a programme that helps report all these aspects. 

Renegotiate to Cut off Expenses 

While planning to shrink expenditure, renegotiation is the prime strategy that the company owners should hold to. For instance, entrepreneurs can start with renegotiating their rental costs with third parties. 

On the other hand, there are also expenses that companies should not reduce--marketing and sales expenses. The organisations should continue to spend on marketing and sales during the crisis as it, in turn, helps promote and sell their products. 

Cash Flow 

In tough times, the companies should always have cash in their hands. They should recover debts and focus on their customers. The companies should divide customers in 4 categories-- A grade customers, who pay on time; B grade customers, who are basic customers and have good relations; C grade customers, who cannot pay on time, and D grade customers, who don’t pay timely, in turn, convert into debts. 

The company should try to get money from A and B grade customers as they will pay off their dues and help the company sustain in this downturn. 

The entrepreneurs should follow the cited suggestions in order to survive in this economic slowdown. 

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