Ukraine is quarantined, and there is a financial crisis in the country. The next two to three months will be difficult. The main task to get rid of panic. Often, people make mistakes by making quick and deliberate decisions in crisis situations. Quite often, these decisions are not solutions in such situations. You should leave the shock state as early as possible, look around and use your time and opportunity wisely.
It is necessary to understand what kind of problem the crisis has brought to your business, to evaluate its scale and to understand how to solve this problem and how to move forward in the right direction. Accurately and specifically evaluate and understand your financial and economic capabilities. How many reserves are there and how to use them to keep the business running. Consider what income you can actually get in the expected crisis. Usually, in practice, this expected period is multiplied by two.
When the financial possibilities become clear, you move on to the expenses point. It is necessary to minimize and freeze investment programs. Reserves for investment programs cannot be spent, as these reserve funds may be required to support a company’s operating activities in a crisis. A clear balance of income and expenses should be maintained in order to get through the crisis normally and without losses. In the current situation, when cash flows are squeezed or absent, many companies will have to cut staff costs.
Find the positive
Take the current situation as a challenge. Crisis is often a time of new opportunities. When everything is calm and you are not experiencing anything, everything works as standard. You follow the familiar paths and often do not take the time to find more effective ways to profit and development. Now, it is the time to do this. Assess the situation, think of alternative models and approaches for business and revenue generation. Look at the situation more broadly. Look for the best options.
The crisis strategy should not change. The messages the business sends to its client must remain the same. It is important to broadcast not only your products and capabilities to your clients and society, but also your values, goals, concerns and care. Respond quickly but slowly. No matter how corny it might be perceived. Consistent and flexible communication with the client is very important. It requires proper marketing. Don’t save up on this.
Now you have the time to carefully study your customers, prepare for communication with potential ones, gather the information you need and understand their needs. And when the shock situation goes away, get in touch with a more prepared and thoughtful proposal.
The experience, we are currently facing with, is the experience of distance working. This is something that can be used in the future when the storm passes. For many companies, this is an opportunity to look at how you can reduce your rental costs in the future. Now it is important to work out the mechanisms of remote work control.
I am sure that with the beginning of a new stage of development, employees of many companies will be able to continue successfully in this format. This will generally help to look at opportunities differently. Give more and thus get more from employees.
The Government can also do something. Spheres of services and entertainment are most affected during the crisis. They need help. The main expenses of such businesses are salaries and rent. It is good that the Parliament has already got involved in the work and has provided benefits and breaks for taxpayers. It is equally important to pay attention to the labor law, which obliges to pay 2/3 of the salary for the quarantine period. This issue is difficult to follow or not possible when there is no cash flow.
The State needs to understand that the easier a business goes through the crisis, the less unemployed it will have to take care of.
Everything else depends on your thoughtful and decisive action, without panic.