How to build a business that can withstand the Covid-19 Recession - Covid-19 hit us this year 2020 and has caused much damage to the many people in our economy. Most business are suffering badly and there has been a retrenchment drive that is going on since the virus started to tear through the economy of the world and also in Singapore.
Singapore is suffering very badly because it is reliant not just on trade and also on the inflow of tourist into Singapore.
Singapore is making a strong effort to get rid of the virus through the implementation of the circuit breaker actions that will mean that most people that are not deemed essential will have to work from home and also will have to stop work. This stopping of work will not only help stop the virus from spreading but it may stem it out and allow the economy to have a proper reboot. But in the meantime most businesses will suffer and suffer badly.
There are some ways that we can suggest to help you withstand the Covid-19 Recession but some of them might involve a lot of sacrifices and also some painful moves.
1. Cutting down on manpower
The most clear cut and outright move is to make for some plans to carry out retrenchment. Also the most painful move but if your business is suffering very badly due to the drastic fall in revenue if you are from the tourism sector or you are from some of the more badly hit services sector, the way to stop the pain is to let go of some of your non-core workforce.
The thing about cutting the loss is to maintain what you can maintain to wait and weather through this tough times. If you are not able to weather through, you might end up having to retrench even more people and this will cause even more hardship to more people.
It might be the toughest move that you can take but it might be the more necessary one.
2. Going online or going digital
For businesses that can take advantage of online platforms, you should, if you haven’t, this is the time to start.
For food and beverages businesses, you have not realized that you can actually get a lot done through using deliver methods before this lock down and now with the lock down, you realize that you can still keep your business operating by going onto all the food delivery platforms that will help you to get delivery done for your orders. This is also one of the best times to get into all this platforms with the government supporting businesses to move onto them.
For our businesses, explore E-Commerce to get things to sell, explore other methods such as online selling to get your products to still push out. If you are doing this there is a fair chance that you can still survive
3. Taking a loan to cover cost
Arranging for a SME Loan during this period of time might be the Singapore most practical move for most businesses to take. This is to make sure you are able to make arrangements to pay things that matter the most.
Rental and manpower cost will keep running even if your businesses are not doing well but this means that if the downturn last for a long time. Then you might not be able to get through it and this may be one of the toughest period of time for you in the sense that you will not be able to pull through if you don’t have this cash flow in place.
A Singapore Business Loan will definitely be important for your business right now.
4. Outsourcing to cheaper countries and doing it now
Most businesses will try to resist this when they can maintain their cost and their income but for more businesses that have figured this out early, they would have done it.
Most major businesses have some parts of their business done overseas. Its either cold calling or they are trying to get their administrative work done in nearby Malaysia. There are many ways that you can outsource non-core portions of your business and this is one of the few that you can explore doing.
How to build a business that can withstand the Covid-19 Recession