When a company’s main office, factories and facilities are closed due to a natural disaster, pandemic or incident, what happens next? Businesses want to Recover during a lockdown as quickly and efficiently as possible. But, it isn’t going to be easy.
Businesses often receive emergency financial assistance from the government to help them through the transition period. This may be in the form of loans, grants, or tax credits that can offset lost revenue.
Struggles Within Lockdown
Lockdown may not seem like an appropriate response for most business owners, but sometimes the choice isn’t theirs to make. There are options available for some, and a business must work with its local officials to secure these other funding sources to continue operations. The best option for recovering during lockdown would be to find a viable alternative source of funding. In some cases, emergency funding may not be available, but several alternative sources may be available. Different methods of operations that could generate more business.
Another option may be to agree with an individual investor to raise capital. Many companies have already done this and have managed to pivot well to refine their business operations. They have been successful in raising substantial amounts of money without having to put up collateral. If a company cannot raise capital from a private investor, they may consider selling assets or making other types of acquisitions.
Many businesses may choose to go into bankruptcy, which can be a very difficult step in the recovery process. Although this is the last resort, it’s being considered by many businesses which cannot receive any government funds.
There are other alternatives for businesses recovering during lockdown that include corporate restructurings, such as asset sales, debt consolidation and other financial solutions. If a business is facing bankruptcy, they may consider selling its assets, especially those that are unproductive. These could include old equipment, excess manufacturing capacity or machinery and property. Businesses also might consider hiring a management consulting firm to help them navigate this process. A management consultant will help businesses develop a solid plan to recover during a lockdown.
Digital businesses are still working and thriving during the pandemic as many companies turn to work for home. These digital companies will be the key to economic recovery, as they aren’t hindered by new rules and regulations. Instead, developing methods to bring other businesses into the digital space.
With revenue and cash-flow an important issue facing businesses social selling will also become a valuable asset to any sales team. Learning how to generate leads, communicate and close sales online at a quick pace will be vital to a company’s survival.
As businesses recover during a lockdown, they should also take steps to protect themselves and their customers. For example, many businesses will need to offer a wider range of communication channels for those working from home. As well as the obvious safety measure put in place within a working environment such as handwashing stations, social distancing signs and regularly cleaned surfaces.
When a business is recovering during a lockdown, the best course of action is to be prepared. Take advantage of any source of funds that may be available. Keep up to date with the new measures put in place and have a keen eye on the relief measures being put in place.