Cash, Customer, and Digital Service Providers
A pandemic is a global health crisis where a virus or a disease has already infiltrated populations across the globe, and governments are enforcing isolation, quarantines, and lock-down, to prevent the further spread of the disease. This leads to an artificial recession – where people are unable to go to work, businesses unable to pay salaries, families unable to afford basic supplies and groceries, banks and financial institutions unable to recover loans, and the government losing out on national revenue because people can’t go to work.
During such times, businesses need to grip onto three key principles –
- Ensure cash flows are not affected
- Ensure courteous service to customers
- Ensure that digital service providers are involved in the business model to overcome the challenges in the physical world.
Even though the Coronavirus is largely under control in many parts of the world, there is a high risk of a deadlier second wave in the latter part of 2020. Business leaders are encouraged to take this seriously and invest in continuing to serve customers through digital services such as mobile applications. Many banks have already taken steps to offer such a facility to their corporate and SME businesses. We encourage businesses to consider investing in working with trusted banks and vendors of digital financial services.
Business leaders also need to take into consideration that the next wave might last for at least 6 – 8 months. How are you going to pay your workers during such a period without sufficient cash reserves? Now might be a good time to talk to your bank manager or financial advisor, and leverage your assets to ensure uninterrupted cash flows for the next year. You cannot expect government stimulus because governments across the world are already drowning in debt
The next thing business leaders need to focus on is – ensuring uninterrupted communication lines between customers, employees, management, and leadership. The quicker information travels between stakeholders, the sooner informed decisions can be made. Investing in a semi-cloud computing solution will ensure that even though a business undergoes a recession, the business itself will not die completely. It can be revived at a later time with minimal loss to information systems.
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