Navigating the business world can be exciting. However, it is not without risks and can cause a lot of pain if we are not cautious in our business strategy. Recessions that hit us almost every 10 years will be a hurdle most businesses will need to endure.
A recession can impact even the most robust organizations as it can originate from various causes. The common ones include economic shock, financial panic, rapid changes in economic expectations, and sometimes a combination of the three. The current COVID-19 pandemic is forcing many businesses to slow down and even stop their operations. It can thus be classified as an economic shock.
At the time of writing this, Malaysia is currently going through the second phase of its MCO until 14th April. Furthermore, the European Union, the United Kingdom, and other countries are starting to enforce their own lockdowns to combat COVID-19.
During this lockdown period, only essential businesses can operate hence creating a stunt in economic movements. This tough time requires organisations to take steps to ensure the sustainability of its operations to brace the impact of the recession.
Number 1: Be Prepared For The Recession
Survival of the company is essential; hence preparation is crucial in ensuring operational tasks can still take place. Among the plans that usually take place during a recession is a business continuity plan.
A business continuity plan allows organizations to run even when the situation is not ideal for people to work in their usual workplace, or even in a crisis. Having a business continuity plan is a step that needs to be done in advance. It will also include an alternative budget or cash flow reserve that can be used to keep operations running.
It is never too late to start your plan now, and there are plenty of online resources that can help you set things in place.
Number 2: Buckle Up
There will be a time where you need to cut on unnecessary items such as reducing the number of bills. In simple words, it means the organization must try to be frugal during this period. However, do not sacrifice your customer experience even if you are on a tight budget.
Maintaining an excellent service might be the thing that can save your company from drowning in recession. Better yet, it might separate you further from your competition, and eventually, you will be cruising your way through the recession period.
Number 3: Be Open to Change
Business survival in times of recession is a struggle, but dwelling in disappointment will not help either. There are many examples of when organizations are not able to keep up with changes around them.
These organisations will be left behind and, in the end, became irrelevant to the market. Nokia was once considered a pioneer in the tech and digital industry.
Unfortunately, their inability to keep up with the fast pace of advancement made them no longer appealing among users. Automation and digitalization are a new way to stay in the game. Many organisations have shifted themselves to apply these elements to grow and manage their operations at a lower cost
All in all, preparation is vital to ensure your businesses stay afloat during the coming recession wave. We must also realize that digitalization is inevitable, and we can leverage it to propel businesses to another level in making things efficient, especially as big data can help business owners to predict and plan their operations strategically.