4 Hard Lessons Businesses Are Learning Due To The Health Pandemic
The coronavirus health pandemic is likely to last for at least several more months and may extend into 2021. Here are some of the hard truths businesses have been hit with during this time.
Businesses Need To Be Flexible
First, if there’s one thing that’s clear it’s that in the future businesses need to have a completely flexible model. It’s true to say that the businesses that have found the most success in this current worldwide situation were able to quickly adapt to a home run business model. They had the tech and connections in place to do that while keeping everyone on the same page. Indeed, a lot of companies have adjusted to this change. But some have struggled without access to an office.
No Online Presence Was An Error
Many companies are learning a difficult lesson with their brick and mortar only model. Primark in the UK has absolutely no online presence and no way of selling their products online. Part of the reason for this is the business model itself. It helps to keep the cost of items low and that’s a unique selling point for the brand. However, it also meant that they had to report they have made 0 sales since closing their stores during the start of the pandemic. They’re not alone. Some brands are going to disappear purely because their business model did not allow them to ride out this particular storm.
You Can Not Just Hope For The Best
No business was fully prepared for this health pandemic. In fact, there’s an argument that none were even close. Theoretically, Mcdonalds, Burger King, and other fast-food joints should have been able to continue to operate by simply keeping the drive-throughs open. However, they couldn’t because none of them were in a position to adapt. Now, they are struggling to get back up and running by adjusting their business model behind the scenes. But it’s taking a lot of time and that’s time they don’t have.
Furthermore, a lot of businesses simply do not have the right insurance coverage. So, when they were hit, they couldn’t get any form of financial relief. Restaurants are one of the heaviest hit sectors and like won’t open until stage 3 of most exit strategies. That’s probably towards the end of the year. Restaurant insurance policies often cover a multitude of different business needs and the good news is that some insurance companies are providing relief even though they are not legally obligated to do so. The problem is that a lot of businesses never bothered to set this type of cover up.
Low-Efficiency Levels Will Kill You
Finally, right now, it’s absolutely crucial to have a business model where the costs are under control. One of the side impacts of the pandemic is likely to be a massive recession. Indeed, some experts are arguing that the economic situation in America could rival the great depression. We’re already starting to see problems here and the companies that the survivors will already be working on how to keep their costs low. Those that have been spending recklessly for years could be in serious trouble a few months from now.