Global economy to grow at 3% – 5 tips on how to stay afloat during COVID-19

Published On May 20, 2020
In covid, Blog Archives

The novel coronavirus has put the world in doldrums for at least the entire 2020. Scared people are locking themselves in until they hear positive news from someplace. Staying at home has reduced the pace of company operations and caused some businesses to halt their operations completely. Market research during the COVID-19 crisis explicitly display the struggles of physical-store model businesses with their employees ‘daily wages and vendors payments. 

These figures on the influence of coronavirus will shock you: – 

  1. IMF states that various prosperous western nations will bear the brunt of an impending recession. It estimates global economy growth at –3 percent in 2020, which is far worse than the 2009 global financial crisis. 
  1. A whopping total of 39,50,517 coronavirus cases affect the world on 8th May 2020. Out of these cases, the world death toll stands on 2,71,802 (Worldometer). 
  1. The UK predicts a 33 percent contraction in the economy due to the lockdown measures currently in place. From January to March 2020, the US experienced a 12 percent contraction in its economy (Weforum). 

It’s natural to feel overwhelmed in such an adverse economic climate. Don’t worry, though! Our list of recession-friendly tips helps you get there. 

Tip #1 – Offer delivery 

Whether you provide goods or services, make them easily accessible to your customers. Even though they’re stuck at home, your customers still need your products. Tap into the need and find a way to cater to your clients while ensuring their safety. Ensure you serve your clients even if you need to make special arrangements for them. Pick your customers’ brains and find out what offers excite them enough for them to keep buying from you. So, score additional brownie points by going the extra mile for your clients. If you can’t offer delivery yet, you could try buy-online-pick-up-in-stores option to make the quarantine life easier. This excellent tip ensures you survive and thrive during this pandemic.  

Tip #2 – Reduce expenses 

In times of crisis, it’s always a good practice to closely monitor your check books. When you sincerely monitor your finances, you’ll be able to handle your finances better. Finding a way to reduce expenses and still maintaining the quality of your deliverables is a delicate balance all businesses need to achieve. Holding off on non-essential expenses like repainting your offices or purchasing new equipment is an obvious no-brainer. Other difficult cost-cutting tips include reducing rents and delaying loan payments. So, stay on top of your capital and spend your money conservatively to endure this crisis. We are sure these tips will assist you in improving your financial records and staying afloat while you try to survive this crisis. 

Tip #3 – Check eligibility for government assistance 

Several governments anxious to get the economy on track are introducing various helpful schemes, especially for small and medium-scale businesses. Here are examples of great plans announced by western countries: – 

COVID-19 impact on Global economy | SG Analytics
  1. The Australian policy offers several stimulus packages to help businesses stay afloat and uplift the economy as a result. They present a coronavirus supplement package and an increase in the income test for partners worth $79,762 as support to businesses (Smallbusiness).
  2. The US has signed a $376 billion relief fund for all American workers and small businesses (Sba).   
  3. The UK has declared a Coronavirus Business Interruption Loan Scheme (CBILS) to address all loaning and overdraft issues small companies in the UK face (Bdo).

So, ensure you know what benefits your government is offering you and take full advantage of those schemes to sustain your empire. 

Tip #4 –Take out a small business or personal loan 

Don’t fret if you do not qualify for stimulus loans or if those loans aren’t enough for you. Consider leveraging your business credit history to get credit from other avenues. Several banks are offering temporary personal and business loans for you to utilize. This extra revenue helps you pay your employees, fund purchase orders, and cover previous bills. In addition to that, you could also use this money to devise specific plans to cater to your clients during the coronavirus pandemic. This temporary cash-flow brings positivity and hope in glum offices and helps you get through this pandemic. 

Tip #5 – Encourage a learning and skill-building culture 

Having more skills is never a bad thing. So, what if people are scared in their homes, they can still learn new skills and polish themselves during this pandemic. While no one knows when this pandemic will end, trained employees will only improve your business. So, motivate your staff to continue learning through various online courses and informational content. Providing them incentives to nudge them towards the path of learning and success will prove to be your best asset in the long-term. As a true leader, try learning something yourself and be a part of the team that looks forward to a better future post-COVID-19. 

We hope this post was helpful and insightful enough for you. 

Conclusion  

Only a fool would deny how badly the novel coronavirus has disrupted several businesses. However, all hope is not lost! Many business owners innovate and devise new plans to tackle the crisis like real bosses. In times of such an acute crisis, be a leader your team deserves, and make firm and knowledgeable decisions by leveraging technological advancements like data analytics. Any emergency is not big enough to defeat the human spirit. 

We leave you with an insightful quote: –  

“Tough times never last, but tough people do.” – Robert H Sculler 

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SGA Digital Marketing Team
SGA Digital Marketing Team
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The SG Analytics Digital Marketing team creates and optimizes content for service and industry-specific blogs. We are a dynamic team focused on building our company's brand online, as well as sharing the expertise of our subject matter experts through the medium of our thought leadership blogs.

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