3 Steps to Help Your Company Survive a Recession in the Aftermath of the Pandemic

3 Steps to Help Your Company Survive a Recession in the Aftermath of the Pandemic

It doesn’t take a genius to see that the coronavirus pandemic is going to have a long-term impact on the global economy.  In a best-case scenario, if healthcare systems develop the capacity to treat large populations and contain the pandemic, companies will gradually resume business and rebound to positive growth.  However, if economies are forced to remain at a standstill thanks to COVID-19’s aggressive contagion, the chances of experiencing a protracted recession are significantly high.  If you expect your business to survive the negative outcomes associated with the pandemic, it is highly advisable to prepare for the worst, and hope for the best – with the worst-case scenario being a full-on recession.  Here are a few tips on how to prepare for, and navigate, the uncertainties of a recessionary business environment:

     1. Streamline Your Decision-Making:
     Making it through a recession boils down to efficiency.  If your company functions at a high level of efficiency, it becomes easier to manage resources and maximize utility in situations of scarcity.  Eliminating redundancy in administrative decisions is especially helpful when it comes to enhancing efficiency.  Authority should be decentralized so that senior management can focus on urgent priorities, while junior staff have the flexibility to adapt to the changing demands of a recessionary climate.

     2. Use Creative Cost-Cutting:
     Whenever companies encounter harsh economic conditions, executives’ first instincts are to cut costs by laying off workers.  Unfortunately, reducing your work force drastically has the long-term effect of interrupting or even paralyzing the productivity of a company.  This is because layoffs not only have a negative impact on workers, the cost of recruiting and training new workers can end up offsetting all the savings associated with layoffs in the first place.  Before purging your company of workers who have experience contributing to growth, consider implementing innovative cost-cutting measures such as modified schedules, or non-financial incentives.

     3. Embrace Technology:
     One of the most common business trends that emerged during the beginning stages of the pandemic is working from home.  Countless companies all over the world have been able to tap into the phenomenon of remote operations, thanks to the convenience and availability of online technologies.  If your company doesn’t already facilitate its operations with tech, the time to start is now.  Regardless of whether you’re a manufacturer, or a service provider, there is an unlimited number of technological systems to help you keep going, in spite of prominent challenging circumstances.

     Any company that expects to survive the shock of the COVID-19 pandemic has no choice but to think outside the box.  Much of the mayhem which the pandemic has triggered certainly gives cause for alarm, however, as organizations all over the world begin to adjust and define the new normal, it’s clear to see that the future of business lies in technology.  Anything, and everything, that makes it possible to transact remotely is going to take center stage as we recover from lockdowns and quarantines.  It might not be possible to predict everything that’s going to unfold, but it is certainly advisable to keep an open mind about what is going to take to help your company navigate the future.  If the economy continues to contract, don’t just position yourself to make tough decisions in order to cope.  Position yourself to make strategic decisions instead.