Running a business can be a tedious task, but doing it with one arm tied behind your back makes it almost impossible to manage it. The current situation has been of this type because of the COVID-19 virus. Businesses are limited and have to face restraints while functioning because of government-imposed restrictions. People are not allowed to leave their houses and maintain distances while outside, which creates a gap between the suppliers and consumers. Also, authorities have strictly instructed everyone to avoid crowded places and centers of attraction. It has resulted in damaging every type of business to a great extent.
The only people able to operate under these circumstances are those who deal with most of their business operations online and the ones who have significant resources to outlast this scenario. Because none of these limitations affect online services, they are still running smoothly. On the contrary, most online services are experiencing an uptick as everyone tries to find day-to-day resources using online portals. It has allowed these platforms to capitalize on the situation and benefit dearly from it while it lasts. As far as resourceful people are concerned, they can afford to shift the nature of their work and begin online services and introduce work from home policies. Since they don’t have the factor of finances restraining them, they can afford to experiment and tailor their enterprise to suit the circumstances. That allows them to stay in the race even in a crippled state and recover from the losses instantly.
However, a large portion of the business industry still suffers from challenges as they struggle with the current situation to survive. Some people are considering changing their trades, while others look upon winding up their establishments to recover whatever little amount they can. A handful of steadfast and determined individuals are trying to fight their circumstances by avoiding any rash decisions. The situation has been taxing for them, but they are investing their expertise and diligence efficiently to ensure that they don’t cease to exist.
To better understand their conditions, here are the seven key challenges that businesses and companies have to face in the time of COVID-19.
1. Finances
The biggest concern of companies and companies is to manage their finances. Since the sales are almost insignificant with the people being under house arrest, it is challenging for them to make their ends meet. On top of it, you can’t expect to put the expenses of your business on hold as you try to get back in control of the situation.
Some companies that are aiming for survival maintain their flow of finances using money lenders and loans. They are using their credit history and potential sales to meet the requirements of commercial loans. Also, since money lenders are often understanding and flexible, you can easily find the right resource, even if you don’t have immaculate records. That is how these businesses are securing their existence.
2. Employees
The most asset for any business is the workforce. The employees working in any company are only human and are facing the same confusion as everyone else. They have mixed motivations regarding their jobs, and it is tough to leash them under these difficult times.
Similarly, not every industry needs more employees, but they have to worry about downsizing their workforce. Relieving a significant percentage of workers in a blink might allow you to save some resources, but will leave the allegiances of the rest of the workers in doubt. That is why managing employees is a challenge with which these businesses are dealing.
3. Shift to eCommerce
Since eCommerce is experiencing an upward trend, given the current circumstances, everyone is considering it as a potential alternative. However, it is a significant shift and requires an elaborate plan to execute it on a large scale. It requires transforming your business models and design, as well as strengthening your online functionality to become operational. Assembling the staff and managing the resources is a great challenge if you didn’t plan it before.
4. Clients
The outbreak of the virus has also left many clients in a state of flurry and confusion. It is difficult for them to decide whether to continue their business operations or suspend them. That is limiting their investments and orders, which is damaging the related businesses. Besides that, some clients are unaware of whether outsourcing companies are functioning or not. That is also making companies lose their businesses and struggle with their cashflow.
5. Resources
Every business is dependent on several resources that allow them to function appropriately. Even if a company wishes to keep their business operational, if the suppliers are unavailable, then it becomes a challenge to sustain that functionality. It means that you can’t complete orders and meet customer demands even if you take them, which causes a functional discrepancy.
6. Communication
Communication between the workforce and the employer and amongst the employees themselves is crucial. Employees are also in a flummoxed state of mind, and they might be struggling with anxiety and frustration, which will affect their work performances. It means that even if you want to offer excellent services, you will fail to provide them with a crippled workforce. That is why you need to reinforce and comfort them to maintain your business standards.
7. Training & Tutorials
The current situation has made businesses unable to leverage any technology since the operating platform is transforming. However, not every employee is proficient in using technology. It means that you will have to prepare adequate training and tutorials for employees to foster skillsets. This process is tedious and can be long and dependent on the adaptability of your employees, which hinders the business.
Summary
These are the seven key challenges that every type of business is facing amid the COVID-19 crisis. The only way to tackle them is to observe diligence and perseverance while ensuring that you remain operational. If you can sustain your establishment even using unusual methods, then you can recover the damage when the situation shifts back to normal.