Businesses dealing with essential commodities are undoubtedly in a better position than those who were forced to halt operations completely after the announcement of the lockdown, even though the sudden spurt in consumption – that happened in the first two quarters of the lockdown as a result of an uncertainty regarding the availability of supplies – dwindled with people settling down and putting a check on their spending.
Despite all the structural changes that have negatively affected even businesses associated with essential services, there are a few who remained nearly unscathed or fared better owing to being lean. Let us look at a retail store chain called Avenue Supermarts Ltd, which has done exceptionally well than its competitors..
Here is why:
Cloud/SAAS Solutions did better
Of course, industries like tourism, hospitality, manufacturing, and construction to name a few, cannot function without a physical workforce in place. However, businesses that could step up their game by adopting the cloud and the SAAS revolution early on managed to fare well even in the time of crisis. They acted faster as far as continuity in providing services to their existing customers is concerned, and also managed to relocate employees to a work from home set up, with the exception of those into emergency services or involved in handling mission critical data.
Here is a list of businesses and services that have served lock down demands thus proving their relevance.
In this case the failures of a few must be considered too in identifying problematic areas such as security breech, in contrast to the emergence of young tech platforms with better foundations claiming the bounty.
Experts are advising businesses to diversify future investments across
Diversification produced quicker results
Indeed, diversification and adaptability are the magic keys to sustenance during a crisis. The success of a business right now depends on two factors:
For instance, experts at Orios Venture Partners feel that lending startups will have to model special credits towards corona-hit borrowers in order to stay in the game.
Here is another example: A garment factory that has been closed due to the lockdown can tap into the current need for safety garments and design its operations accordingly.
Suppliers/service providers in various sectors can identify immediate government requirements on GeM which is the Government e-marketplace.
Customer retention is what businesses should focus on
For service-based businesses, the current effort must be put in gratifying current customers in terms of providing them rewards or extra services as a display of gratitude toward loyal customers. Marketing personnel must concentrate on asking customers about current woes and extending assistance in any which way possible.
Of course, at a time when continuity is a luxury, substantial relaxation in the profit margin is essential for any business that adopts resourcefulness.
Bookkeeping and future budgeting would face a sea change in terms of accounting practices with normal procedures being hampered and awaiting renewal by the economic impact of the COVID-19. Stay tuned to learn how accountants must pivot operations.