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The COVID-19 world health pandemic has put the global economy through the wringer. Due to lockdown, many businesses have been forced to shut their doors and some have still not reopened. Indeed, AMC theatres recently announced that without support from studios soon they would be forced into administration. To give you an idea of the global ramifications AMC is a global cinema chain and their bankruptcy will result in thousands of cinemas closing throughout the world including the Cineworld chain in the UK. Of course, cinemas aren’t the only type of business that could be feeling the strain over the next few months. Particularly if the warnings experts have made about a second wave come to fruition. This is why it’s important that businesses are preparing for the coming economic storm.
What Will The Full Economic Effects Of The Coronavirus Crisis Be?
Experts are continuously debating how widespread the impact could be. While some countries like the UK are predicting a 2.5% shrinkage of their economy, the US is predicting 6.5%. Some economists have suggested that the effects could rival the great depression while others feel it will be more in line with the 2008 housing crisis.
Although there have been bright moments including a decrease in unemployment rates the storm is still on the way. So how can businesses prepare?
Reduce Wastage
Wastage is one of the major issues for businesses when the economy is healthy. A high level of wastage in a recession can be catastrophic. One of the best ways to handle wastage is to ensure testing is a key part of your business model. You can do this with services from sites such as https://www.intelligent-ds.com/.
Alternatively, you might also reduce wastage by eliminating members of your staff who are not providing the right level of benefits. This is the worst time to have a member of your team who is not pulling their weight and could actually be dragging your business down. Trimming the fat in your staff is also going to help ensure your company will remain flexible in a time of economic uncertainty.
Diversify
Furthermore, it’s crucial right now that your business is not putting all your eggs in the same basket. You need to diversify your business model and set up multiple lines of revenue. This doesn’t just mean offering more services or products. It’s likely that you do have a business website if so, you can consider exploring the possibility of sponsored content or shared promotion. These options will allow you to make money by turning your company website into an advertising machine and partnering with businesses that are not direct competitors but have shared interests. You can learn more about sponsored promotion on https://blog.hubspot.com.
As you can see the challenges that businesses are currently facing are clearly unprecedented. There are no clear solutions and yet it is vital that you take action now. Numerous businesses are going to be wiped away in the coming economic storm but your company does not need to be one of them. Preemptive action will put your company in a stronger position than key competitors.
