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A Business Survival Guide for the COVID-19 Crisis

Posted by: Zhorea Garcia
Category: Business in Asia, Useful Tips
A Business Survival Guide for the COVID-19 Crisis

Business survival strategies are now more vital than ever. Recently the COVID-19 crisis has forced nearly half a million Chinese companies to close in the first quarter of the year. On the other hand, company registration for new firms also fell by 29 percent between January and March. Although closing a business in China still requires financial resources, some companies choose this hard path as the only way out of the crisis.

Have a look at our previous article about Closing Your Business in China and How to Deal with It

Most companies that opted to close their businesses could not withstand the financial and operational challenges brought about by the COVID-19 pandemic. Therefore, companies need to have a crisis management plan directed toward such a crisis. This article will provide a few points to help you assess the survival of your business during these times.

Managing your finances for business survival

The first thing that business owners do to manage finances during an economic crisis is to cut costs. One of the ways companies reduce costs is by reducing staff. However, this should mean that you will have to pay your employees’ severance pay as well. Otherwise, you can keep your employees by negotiating with them for a more flexible working schedule. If your employee agrees, he or she can work during a special working period and get paid for the minimum wage per local standards. Furthermore, you also can limit your payments only to critical vendors to preserve your cash balances. In terms of your suppliers, it is ideal to understand their financial pressures to know how this can impact your operations.

On the other hand, businesses may also seek funding options and assess their financing strategies. For instance, you can approach lenders or creditors on loan support encouraged by the government. During these times, businesses need to keep up to date with relief measures such as tax incentives or financial support. You should also engage with your landlords to settle a deferred payment period or a reduced amount for your rent.

Read more about Support for FIEs in China during the COVID-19 Outbreak

Finally, work with your key staff on finding achievable ways to reduce or even generate revenue despite the difficulty.

Solving operational problems

As companies face the impact of the COVID-19 crisis, the interconnectivity of businesses around the world now becomes a threat to the continuous operation and production Thus, the disruption of the workforce as well as slowing down of consumption put businesses in a survival mode. Companies showing operational resilience are expected to minimize the impact of COVID-19 and recover from the crisis.

Resilient businesses stand the test of times. Decide on a short term or long-term impact of the crisis on your business and determine which steps to undertake. In the short term, it is crucial to establish communication channels with your key employees and customers. Maintain control and transparency over your business by keeping protocols and identifying problems immediately. One way to do this is to support information integration within your company. For example, using a Cloud-based company management platform such as Kwikdroid can boost your control over your business, especially during the COVID-19 crisis. It gives 24-hour online access to all your company operations and employee activities. Thus, it increases visibility even though your employees are working from home.

Working remotely

Since nowadays working remotely could be one of the best options for business survival, ensuring technology and data support is a must. In critical times like this, companies need to realize the importance of IT services such as Cloud migration or Cloud ERP. These methods can help your business meet the needs of your clients as well as mitigate possible data security issues. For example, adopting a Cloud-based ERP system allows your company to share information across one database. Instead of physical IT infrastructures, this type of ERP service ensures business continuity by running your company’s desktops and applications through the Cloud. As a chief executive, making data-driven decisions could just save your business amid the crisis.

Read more information about Why Cloud ERP Could Save Your Business amid COVID-19

Dealing with market access and customer demand

Keeping track of the current and foreseen changes in both domestic and global markets helps you assess where your business stands. Assess which products or services are in high demand and boost your capacity in these areas. Moreover, cooperate with suppliers to monitor supply chains and anticipate further border restrictions whether in the short or long term.

On the other hand, customer experience and behaviors dictate your customer’s demand. In this case, you should be able to identify new customer behaviors and allocate resources for tailored customers. Think of it as incorporating new digital channels to market your services or products. You may seek available customer contact mechanisms such as social media or other online platforms to maintain personalized interactions and actively respond to their needs. Kwikdroid, for example, has an integrated database and communication tool for both customers and suppliers. This system enables your employees to answer and act on urgent matters. Installing such an online tool could also potentially help your business attract a new network of customers who prefer doing business more efficiently.

Check out a short video presentation on our Kwikdroid page to get a full view of how it works.

Conclusion

Business survival relies on persistence coupled with best practices in crisis management. Thus, seeking practical advice can be useful especially if you are new to doing business. All you need to do is to craft a survival plan along with business expert insights.

If you are running a business in China, you can book an appointment with our consultants to get practical advice on different survival strategies you can employ based on your business needs.

Check out COVID-19 related news on our COVID-19 Policy Briefings.

If you want to know more about doing business in China, contact our team for consultation and assistance. Follow us on social media to get the latest news!

Our experienced team has the necessary expertise and the know-how to support you with your business – have a look at the services we offer.

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Author: Zhorea Garcia

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