Jun 17, 2020 05:07 PM EDT
The novel coronavirus is having a devastating impact on the United States economy, which in turn is adversely affecting many businesses. Unfortunately, many companies are facing closure due to low demand, while others struggle to keep afloat and pay their staff.
All industries have been affected by the coronavirus, but some bear the hit more than others. One of the hardest hit is the real estate industry. Developers are facing significant delays and stoppages as they can't obtain permits, meanwhile, buyers have all but vanished for the time being. The Rancho Santa Fe real estate market, like so many others, will need time to thaw from the current freeze caused by the coronavirus. Additionally, many asset owners worry about how their tenants may struggle to make lease payments, especially those laid off from work.
Although the long-term effects of COVID-19 on the economy are unpredictable, companies need to recession-proof their businesses to bounce back after the outbreak. Here are some creative ways businesses can bounce back from COVID-19.
1. Digital marketing and user experience
Most industries use digital marketing avenues such as social media and email marketing to reach their consumers. But, the coronavirus outbreak is transforming the way people digitize their marketing to maximize its effects.
For instance, user experience is now a vital part of digital marketing since your business must offer the best experiences to retain customers. Improving user experience not only allows your company to reduce the negative impact on sales caused by COVID-19 but also enables you to increase your customer base.
2. Centralizing cash management
Inadequate cash flow is one of the negative effects of the coronavirus, causing many industries to lay off employees or declare bankruptcy. However, businesses can bounce back from this by centralizing their cash management.
Centralization is a great way to increase efficiency in a challenging economic environment while putting more focus on capital and liquid management. Some benefits of centralizing cash management include:
3. Creating new sales channels
The massive shutdown of businesses is forcing companies to have multiple sales channels to retain their customers. Moreover, with quarantines and lockdowns everywhere, companies need to figure out new ways to keep their revenue coming in.
For example, for a brick and mortar store, you can create an online store, allowing your customers to make orders from the comfort of their homes. In contrast, a restaurant can offer food delivery services, call-in orders, and takeout.
The most effective way a business can ensure effective use of its capital and resources is through budgeting. An accurate budget provides your company with complete visibility and understanding of what expenses you have, including salaries and utilities.
Moreover, through budgeting, you can identify what your company needs and wants to achieve your business goals. Any other extra expenses can then be stopped or eliminated to minimize your cash outflow and increase your cash inflow.
5. Consider your clients
The coronavirus pandemic is changing the way people live because of the shelter-in-place and work from home orders. More consumers are now shifting their spending habits by purchasing products and services online as opposed to visiting physical stores. Hence, your business will need to adapt to the changes clients are making to generate sales.
Any business can bounce back from the economic effects on COVID-19 with these strategies.
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