Late last year, the world was shaken up with devastating news. But at the time, we didn’t exactly understand the gravity of the situation. International news channels were discussing it; internet tabloids had it in their headlines. However, no one took it seriously enough. After all, who knew that something that’s happening halfway across the globe could inflict such tragic damage to the UK? No one knew what was coming until it came.
COVID-19 or Coronavirus Disease has changed life as we know it. Just when the world was steadily progressing its wealth and advancing its technology, this highly-contagious disease which the World Health Organization announced as a “global pandemic” crippled the entire world’s economic growth. Life came to a halt; people are forced not to leave their homes. For the first time in a long time, the world came at a standstill.
With no known cure or vaccine to date, countries are struggling to keep their respective economies from crashing while most local businesses and workers are out of commission. Because the disease can easily be transmitted through close contact with the affected, the UK has been put under nationwide lockdown. This has caused a significant toll on the national economy.
With people appropriating their resources to last them a long time, there has been a drastic decline in market demand. Businesses are experiencing the slowest of days, and some are even forced to furlough employees or file for bankruptcy. While the government is doing its part to protect local economies through granting assistance and fund reliefs to small businesses, the fact remains that many are unprepared for situations like this.
If you’re a small business owner yourself, this is the best time to reflect on your financial methods and contingencies. With everything going on around us, can you honestly tell yourself that you’ve prepared enough?
How Can You Generate Money During These Times Of Crisis?
Depending on the industry your business moves in; this whole situation with COVID-19 may not be the end of the line for you. For one, companies that operate in the food industry can still generate income at this time. After all, food is a great necessity. This is especially true for producers and manufacturers of edible goods. Restaurants and fast food joints, on the other hand, can focus on door-to-door deliveries to keep the money rolling.
Digital firms and agencies can also continue operating during this time. In fact, this is an excellent opportunity for them to boost their sales as most people are spending their time online. It’s their only window to communicating with the outside environment, after all. People are shopping for necessities from their homes; they also seek refuge in online entertainment. If you still haven’t tapped into eCommerce, now may be a good time to start. If there’s a way to offer your products or services online, you should think about diversifying your approach – better yet, migrate your business online.
There is no telling when all of this will end. Even if it does, a significant recession will be experienced for sure. This is why you should consider your alternatives as early as now. You should assume the current situation to be the “new normal.”
Preparing Beyond The Pandemic
This year has brought on a lot of changes. But above all, it has brought a lot of realizations for business owners and employees alike. If you have had problems making ends meet from the very start of the Coronavirus crisis (or even before that), it’s safe to assume that your business would have encountered a financial crisis on its own even if COVID-19 has not entered the fray. The pandemic only hastened the process, but it was only a matter of time before it came to the same point anyway.
This whole experience should tell you something very important, and that is to always prepare in advance. It is best to have contingencies for contingencies. Crises like this one are never announced in advance so telling yourself that “no one saw this coming” is not a viable excuse. Going forward, you have to manage your finances better; keep a contingency fund for emergencies like these. Create a financial blanket for your business so that you can at least have something to cushion the shock of sudden market changes.
Say you’ve been earning a good income during this crisis. It would be best if you took it as an opportunity to start a contingency fund. This health crisis may be the worst we have seen in the decade, but there’s no telling what more awaits in the future.
As much as we would want to avoid such situations from happening again, preparing your business for tough times is necessary. You can’t just start preparing after things have blown out of proportions; anticipating the worst can help you establish a safety net for your business. It doesn’t have to be large amounts either. You can take a snip from the gains you receive and put it away for emergency use. Doing this consistently will help you raise a considerable amount in the future.
This crisis has been an eye-opener for businesses globally. Economic growth has been positively progressing in the past couple of years that no one could’ve guessed a sudden “shrink” coming. We live and operate in an extremely volatile market, so safeguarding your best interests at all times is necessary for the survival of your business.
If you need more insights on this, you can always seek out expert advice. You can approach my team and me through any of our social media channels for any inquiries you may have regarding finance, contingency plans, and other curious questions you may have about Coronavirus and its effects on UK businesses. Better yet, join us LIVE in Uncover Wealth Radio – a Podcast hosted by Annette Ferguson, Chartered Accountant and Certified Profit First Professional, CEO of Annette & Co.
We broadcast LIVE every weekday at 11:00 AM. Join us in our discussion of the latest news surrounding UK businesses and Coronavirus updates.