Is Coronavirus a Danger or Opportunity in Disguise for Businesses?
- BY Jaspreet Kaur
Feature Writer, BusinessEx
- Jun 10,2020
- 9 Mins Read
Today, every company is making an effort that customers come to them during the crisis. The contagion has impacted the economy, as well as businesses, so badly that it is difficult to foresee a positive future. To deal with crises, firstly, companies need to differentiate whether they are bleeding or recovering losses. The crisis can essentially be used in two ways--danger and opportunity. It becomes a danger when a company presumes that it is in danger and should take necessary steps to survive. While considering it as an opportunity, a company needs to value this time as a golden opportunity and should accelerate its growth by thousand times.
What's the Right Way to Earn and Sell During a Crisis?
Entrepreneurs often get perplexed while ascertaining as to how to sell and market during the crisis and make money without employing a huge staff and increasing marketing budget. To overcome the crisis-led problems, companies need to change their approach. They need to become strategy-focused firms, thereby, concentrating on three foundations--persevere, pivot and profit. A company that focuses on these areas can prepare itself to propel and prosper so that it can fly.
Primarily, it is not the size of a business that determines its survival in the crisis but its attitude of the firm that determines its future. While dealing with the crisis, a company needs to follow a crisis innovation strategy and follow below mentioned ideas:
A company can preserve itself after determining its growth stage and taking adequate measures to prosper its business regardless of the depressive environment.
- When Company's Growth is Negative
When a company's cash reserve is low, it should focus more on innovation either by upskilling people or bringing in on cash. At this time, the company should learn to let go in order to survive in the market. Thus, a company need not stick to old business practices and strategies.
During this crisis, entrepreneurs can attain stability by accessing loans from the banks. The recent financial stimulus package has been formed to solve the problem of cash crunch.
- When Company's Growth is Positive
While if a company's cash flow is high, then such a firm should invest money in marketing. Herein, social media is an apt area which gives immense promotion and recognition to the company.
It is also an opportunity to hire new talent that the company wanted to recruit for a while. Further, it is the time when a business can be acquired as the target business would be cheaper than it is actual worth. The entrepreneurs can also access cheaper loans during this time.
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