Statistical changes, technological advancements and significant global events like the Covid-19 pandemic – all are influencing the ways businesses reinvent themselves in 2025. Most business sectors have borne the brunt of the improper implementation of lock downs across the world.
Business leaders like Amazon’s Jeff Bezos and Facebook’s Mark Zuckerberg have played a key role in reassuring their employees in the post-COVID scenario.
For everyone, from business owners to employees, this time has been as educative and life-changing as it has been testing. It called for stepping out of the comfort zone and reinventing oneself in a completely new way. It demanded patience at both ends of the table and counter to adapt to the change. Technologies that were considered an ancillary or parallel stream have suddenly become mainstream. The perspective is changing rapidly. Sometimes the problem is not the problem and the solution is not the solution. The questions managers are now asking themselves are how do we move forward, strive and move forward to reach our goals?
COVID-19 has forever changed the ways of doing business. In this article, we tell you some practical strategies to get business back on track in the post-COVID world.
1. Digital transformation
The post-COVID era is expected to experience unprecedented digital growth, and companies should prepare themselves. They should focus their strategies on digitizing their processes, especially in customer-service areas. We have seen that the earliest adopters of technology are financial services companies and large retail stores that have improved their online transaction and delivery models.
Manufacturers are moving towards large-scale automation and implementation of ERP in production processes. Many of these are cloud-based.
Traveling has become a big deal in most companies and Zoom meetings have become common. This is helping companies to reduce travel time, reduce the risk of infection and reduce costs.
2. Financial Security
Survival is the first priority for businesses in today’s circumstances. And strengthening financial security is one of the actionable strategies to revive a business post-Covid. Businesses should first assess the current financial situation. Based on this, they have to take decisions that are going to impact their revenue, growth and profitability.
Businesses should first prepare a cash flow statement. This will include various headings like revenue, income profit and loss. This will help you know how the company’s financial position is compared to previous years.
Cost reduction is going to play a major role in the survival strategy. This may include salary cuts, stopping expansion plans, layoffs and restructuring. Categories all cost items into essential and non-essential, and evaluate them over a one-year time frame.
Business heads should hold a meeting with finance managers and chartered accountants to decide the course of action for the next 3 to 6 months. The challenge for most businesses will be to balance growth and profitability. Even if revenues go up, but profits don’t, it doesn’t mean anything.
The future belongs to companies that have a low asset base, high sales and low overhead costs. If a new division is sucking up all the profits, you will have to take tough decisions like shutting it down. If you are facing any liquidity crisis, try to convince existing investors for further investment. This will also be beneficial for PE investors as they will get equity at a lower price.
Apart from this, finance heads should explore government relief funds for businesses due to COVID, such as getting loans at lower interest rates or tax cuts, if any. Now, the time is opportune to restructure any high-interest loans.
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