Corporate Rescues and COVID-19: Tackling Economic Distress

If ordinary employees of companies panic about the coronavirus, crisis and quarantine, then business owners multiply this feeling by two. Indeed, in the wake of bad news, they can lose their own business, earnings, and even leave those ordinary employees without work. But you shouldn't be locked into feelings of fear and anxiety: now you need to act and make non-standard decisions. In this article, we've collected inspirational ideas for different types of businesses during the coronavirus crisis. We hope they will help you to take a fresh look at your business and get away from bad news.


Catering establishments


Cafés, canteens, restaurants and other catering establishments cannot survive in the coming month without contactless delivery. The outflow of offline visitors has already begun, everyone is sitting at home, but they still want delicious food. In order not to lose profit, except for contactless delivery: Convince customers of safety. Show how clean you are on social media: videos about cleaning, disinfection, washing products and clean hands of cooks are more relevant than ever. Pack food carefully for delivery. Customers need to make sure their food is safe on the way. Make shipping affordable. These can be interesting promotions or at least a decrease in the minimum order amount.


Shops


All retail outlets now cannot do without contactless delivery. But let's be honest: if this is enough for stores with groceries and basic goods, then those who are not included in the main list will have to rack their brains. After all, if now people spend money because they do not leave their homes, they will soon stop, because the financial crisis will come. Motivate customers to buy right now. Carry out sales, arrange promotions — this will allow you to create a cash reserve for the crisis period. Emphasise that goods are now sold at the same purchase prices and will cost more later.


Gyms, fitness centres, dance schools


This category of business is now most likely to go into quarantine - this option is already being discussed by officials. Despite the fact that, according to industry experts, the attendance of the halls has not decreased. So there is still a chance to go online, but few are ready for this.


If your club does not have a separate platform with video lessons, and in general life has not prepared you for this, start virtualisation now. You can do group workouts online for a small fee using video conferencing software like Zoom. Individual training is also possible.


So that the employees of the hall do not sit without earnings, offer them: sell ready-made nutrition programs through your communication channels (for weight loss, weight gain, with buckwheat); create light programs for homework; run home weight loss marathons. So they can play a little blogger, retain your audience and even earn extra money.


Education


Education is moving massively online: from tutors to large universities. If you have a small school, you can conduct classes using Skype, Zoom or other similar programs. If you already have online training, then make promotions for the courses: many will not want to sit at home just like that and will definitely buy something. Don't skimp on gifts. It won't make money now, but it will create a loyal audience and help recover from the crisis. Now is the time to make people a habit of learning. Many have already understood this.


Cleaning


Experts say this area is currently at its peak. On the whole, we had no doubts, but if you want to fly even higher, we suggest: talk more about the disinfecting part of the cleaning or even start a special cleaning during quarantine; tell that people may not leave the house during cleaning; launch active advertising — Instagram has just cut rates!


General recommendations for businesses during the crisis


1. Change the product as required.


Consider what products and services you can offer to existing customers. If the purchasing power of your target audience falls short, come up with a way to satisfy its needs through similar products, the cost of which will be lower for you.


2. Look for a new audience.


Is there a new audience that might be interested in your products and solutions? Maybe you shouldn't have abandoned the "young moms" or "men under 20" segments and, if you think about it, you have something to offer them.


3. Go online immediately, but gradually. 


Start with a small step: inform existing customers that you are starting to take orders by phone, on social networks and messengers. Run a simple landing page through which you can take orders. Connect online payment, launch full-fledged delivery, create a standard website. But always start with the minimum viable product.


4. Voluntary liquidation


And last, if you determine that the company is insolvent and should be wound up it's time to initiate a creditors voluntary liquidation. We know that this is far from an ideal situation, for an insolvent company which has no viable future as a profitable entity going forwards, voluntary liquidation may be the best solution for all concerned.


Conclusion


It will be difficult to fulfil the pre-crisis plans set earlier in the current situation in order to achieve the target indicators. It is necessary to quickly reform plans and goals, namely the development of anti-crisis programs. In a pandemic, the implementation of anti-crisis programs is most important, since the long-term development of the organisation depends on it.



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