4 Ways Businesses Across Industries Have Been Affected by COVID-19
While COVID-19 continues to affect 213 countries and territories across the globe, with infection rates and death tolls constantly rising, it comes as no surprise that the global economy is on the verge of a recession.
For a lot of industries and businesses, it’s been somewhat profitable, but undeniably, more businesses have been hurt by this crisis than they have thrived. This can be said across industries that are doing well, too, including tech and e- and m-commerce. The existing structure of business and economy has displayed its weaknesses, during these challenging times.
Some of the biggest impacts, regardless of scale or industry, have been:
1.Business strategies have to evolve overnight
Almost overnight, businesses that have been running with the same strategy have been forced to step back and re-evaluate things. What worked for years before that seems to be backfiring, including the types of investment business owners made their methods of operation and other essential factors.
Issues with the supply chain, with customers, with the workforce, revenues, and expenses, make for an overwhelming amount of pressure on business owners, managers, CEOs and those calling the shots. With the delicate and shifty nature of the economy at present, there’s no certainty about the impact of each action or decision they make.
2.The workforce is disrupted or endangered.
Among the primary concerns, many businesses have one of the most major issues in managing and protecting the workforce.
While governments across the world suspended non-essential operations, the adaptation to remote work, managing productivity levels, work quality and maintaining professionalism have been challenging.
For many other businesses, especially those who are offering essential services or working with front-liners, the challenge of keeping employees safe has been entirely unique too.
3.Dependence on technology has increased.
In a survey conducted by databox + LOLA, 82.2% of their sample of businesses revealed that they did not feel it was necessary to have employee-customer interaction to get the job done.
This means a lot of businesses have the flexibility of offering remote work and work-from-home and can adapt to the use of technology through video conferencing, multimedia and social media to connect to their clientele.
Previously-held reservations about technology have been rendered outdated and useless in the face of this crisis, and this might be a step in the right direction, especially for saving costs.
4.Financial performance has been affected.
As a result of the changes in strategy, supply chain and customer relationships, there has also been a small negative impact on their financial performances. The same survey revealed that 50% of their sample reported suffering minor financial setbacks, which offers promising insights for recovery.
However, these businesses did feel like their clients, new and existing, would feel the impact of this disruption, thus affecting their overall performance and customer relationships.
With all things considered, the outbreak has shown us the adaptable and flexible nature of most businesses, including those in traditional brick and mortar settings. One of the ways businesses can strengthen and improve their performance is through re-strategizing and through financial management.
We offer business audit and tax advisory services to businesses in Edmonton, helping them build stronger strategies based on what the numbers reveal. Contact us today to learn more!