Before 2020, no one would have predicted that our country will go into a panic situation, and people will have to stay in their homes. Within a month or two, the whole world is in the grip of pandemic Coronavirus, and most of the countries are into complete lockdown. The majority of the Indian population is unemployed amidst the lockdown chaos.
According to a report by CMIE, India's unemployment rate has increased up to 23% post lockdown. And, it could get worse if this lockdown continues.
While the country has gone into the state of lockdown, markets have suffered the most, and businesses are starting to show a downward curve. According to the International Monetary Fund (IMF), coronavirus pandemic can turn global economic growth "sharply negative" this year. It is the worst financial crisis since the 1930s depression, the organization added.
During this tough time, business people must know the nitty-gritty of the financial and legal aspects to lower down their risks and losses. We have created a guide for you to tell you what you can do in the lockdown so that your business does not suffer. Look below and check out these amazing tips that will help you to run the business during this hard time.
Security of employees: Following the government orders and protecting your employees is something your company's primary focus must be on.
Vision and plan: Ensure that your company has enough liquidity to withstand coronavirus. Along with it, the company must have a contingency plan to break the pandemic and get out of it firmly.
Taxes must be explicit: A good company keeps its taxes clear and flow of cash smooth. In this tough situation, a company must keep a check on the taxes and clear them on the go to avoid penalties.
Eye on contracts: Keep a check on the contracts - reread them or try to renegotiate with other parties seeing the current state of surroundings. Also, review subcontracts to know their rights and recovery potential.
Force Majeure Clause: Force majeure clauses are in contracts that can alter a company's liabilities when an extraordinary event occurs, which is beyond their control and prevents one/all from fulfilling those obligations. Under the contract, a company must look into this clause and search for terms like "disease," "epidemic," "pandemic," "quarantine," or "acts of government."
Thinking out of the box: Giving incentives and discounts to the customers will entice them and help your business to stay on the roll in these tough times.
Do the Right thing
Build a new strategy: Creating a new form of business in this tough time might not be easy, but taking it digitally might help the company a lot. Build a client-company relationship digitally and try to work it out.
Offers and discounts: Keeping customers above all must be the single motive right now. Offering them with discounts will entice the consumers and build a long-term relationship.
Don't jump to a conclusion: Businesses might see a downfall, but it is a tough time, and it will pass. So, taking knee-jerk reactions will not do any good for the company. Don't jump to the conclusion that you will only see loss, and the business will come to its knees. Else, take some wise decisions, think of everyone involved with your company, and wait for the time to pass so that your business can rebound.
Follow the laws: Don't do something that is no within the morality or law. Just follow the rules and government's implications, which will help you to sail over this challenging phase.
Major Digital Shift
Work from Home: Companies are following work from home (WFH) policies. But, it is essential to have smooth communication in your company and have a great one-to-one relationship with clients as well as the team members.
Regular Updates: Your Company must keep the infrastructure updates, which includes daily updates to company laptops, helping the employees with a 24x7 IT helpline. Also, let the employees know about phishing emails.
Video calls and meetings: From colleges to interviews, everything has moved online via Zoom calls and meetings. Also, managing customer relations via video calls will help a lot of companies.
Cyber-attacks and data thefts: During these tough times, when everyone will be working from home, companies also have to fight the battle of cyber-attacks and data leaks. So, the companies must have a security system to tackle such issues and also update the anti-virus software of machines regularly.
In the ebb-flowing COVID-19 chaos, business people must look at the larger picture and look at the future positively. Building proper strategies and empathizing with everyone linked with your company is the most crucial thing to handle the chaos. Reach every customer with discounts and offers, use all the digital strategies, and look for the long-distance relations with customers and clients.
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