Young entrepreneurs have had to rethink every strategy that had been laid out for the year 2020 before the COVID-19 lockdown. In case it hasn’t triggered the urgency to go back to the drawing board yet, you are running late! Here are a few effects of caused by the pandemic.
Effects of the COVID-19 lockdown that have paralyzed young entrepreneurs
• Loss of income – people are generally spending less on non-essentials hence slow sales for most businesses.
• Low productivity – out of instability, anxiety, stress, sickness (for those affected), and among other reasons, employees are generally demotivated and are delivering much less.
• An upsurge of expenses – most businesses have had to invest in resources that can support their teams to work from home. Networking and telephone expenses have also increased due to online meetings and increased calls. Safety products and attires that were not necessary have also become essential.
Rethinking and re-strategizing during the COVID-19
Now that we are several months into the COVID-19 pandemic, there’s no choice but to make new plans and modify the workable ones. Realizing that the epidemic has presented us with higher risks than we planned for, as a young entrepreneur, you have to acknowledge three factors.
• No one knows when this pandemic will come to an end.
• There are rising opportunities amidst the threats.
• The enterprises' survival is in your hands.
How do we rethink and re-strategize during the COVID-19 and lockdown period?
It's about time businesses re-evaluate their finances all-around if they desire to keep businesses afloat. Everything from costs, income, and sources of funds are subject to review. If you are holding cash, this is the ripe season for buying companies. Those being crippled by debt would prefer to get bought rather than go bankrupt.
This is also a prime season for forging new partnerships. Pay attention to other entrepreneurs and quickly but steadily build new business links. Dispose of idle assets and channel those funds to funding essential facilities.
Companies that haven’t optimized their data, customer engagement channels, product lines and sales channels need to do so NOW! This has to be treated as critical if the business has to continue.
The alternative is a slow, painful, and devastating death of the enterprise. So, SME’s need to urgently identify and address vulnerable business facets such as acquiring new and retaining existing clients, re-designing products to survive the crisis season and after, adjusting product prices, payment processes, as well as developing long term alliances.
Rethink the future
Now that you know your business continuity plan is too academic. It’s time to go back and develop a new futuristic plan that features a transparent business recovery process.
Think of how to keep people safe, how to grow again, and regain momentum. Set up programs such as training, counseling sessions, and ensure increased communication. This may be all you need to tackle the vast issue of stagnation.
Remember, this is a global pandemic to those who view it that way. Young entrepreneurs should be busy learning and planning to maximize their earnings. It is your current effort that will determine how high you rise amidst the COVID-19 challenges.
The writer is an entrepreneur, and a philanthropist. He is the manager Director of Wortech Solutions Ltd & ChinChin Foods Ltd.