Running a successful business is about mitigating the risks and coming out the other end without too many scars. But, when a global pandemic hits, there is nowhere to hide. The Coronavirus health crisis has brutally exposed the main pitfalls in everything from companies’ supply chains to investment in digital features.
Although they have happened and there’s nothing anyone can do to take them back, there are still lessons for entrepreneurs to learn. By studying the following, you should be able to spot the mistakes and put plans in place to limit the damage in the future.
Here are the four flaws to focus on.
Poor Coverage
In the past, businesses would talk about how buying an insurance policy is a scam. You barely need it, and when you do, they find loopholes. However, what happened after the Coronavirus hit Europe and the US proves how essential insurance companies are regarding a strong safety net. With organizations and individuals struggling to pay, accounts receivable were high and nobody was settling their debts. With a comprehensive policy, the amount you’re owed by consumers and peers is the first thing to be taken care of in a crisis, affording you extra breathing space.
No Downtime Mitigation
Thanks to the industrial and efficient nature of countries such as China and India, businesses didn’t have to run a surplus of supplies and materials pre-COVID-19. It was cheaper to live on the supply chain breadline and only order as much as you required at the time. Once Chinese and Indian manufacturing companies began to stop shipping, the pandemic wreaked havoc on global chains. Businesses, most notably healthcare enterprises, couldn’t afford downtime and didn’t understand how to mitigate the lack of productivity. Simply keeping assets in stock for a rainy day, like an emergency fund, is the key to fulfilling orders and maintaining sales during a crisis.
Relying On Traditional Working Methods
Companies did let their employees work from home, but most preferred them to be in the office. After all, they could manage them more effectively when they could talk face-to-face. Sadly, the side-effects of a lack of investment in virtual tools are two-fold. Firstly, businesses are now having to spend a big chunk of their budget on equipment that should already be in place. Secondly, workers are empowered. Now, employees won’t accept tied excuses as to why their balance between life and work is impaired. To keep morale high and turnover down, you’ve got to advertise the perks that highlight why you’re a modern, forward-thinking employer.
A Lack Of Diversity
COVID-19 has impacted every part of society, so much so that one of the biggest ever marches happened throughout the lockdown. Black Lives Matter highlighted the lack of diversity in public, and this was reflected in companies. Too many higher-ups and managers aren’t from minority or underprivileged backgrounds, and it affects the way people perceive brands. Like Natura, you must consider addressing the imbalance to ensure your younger audience remain loyal.
As an entrepreneur, what flaws do you feel the Coronavirus pandemic has exposed?