According to PNAS, 33 million jobs were lost, and 43% of global businesses were temporarily closed in 2020. Hundreds of companies also went bankrupt in the year 2019-2020 due to the COVID pandemic. Among these are 83 large-scale companies as well. The world has witnessed some of the worst economic times in history. No one saw such an economic contraction since the great depression. It was a horrendous time for businesses to navigate through financial adversities.
However, resilience is typical of human nature. The world has yet again survived the tough times, and now it is on the way to recovery. Businesses and economic activities are reopening, countries are lifting lockdowns, and people are getting back to their normal routine. Many are looking forward to rejuvenating their businesses. Governments are financially helping businesses and instilling new life in them. IMF has given billions of dollars as financial grants to struggling countries. These are times where the right business revival strategy can take a business to even higher levels than it previously was.
The world has certainly gone through a transformation during these times. Now people have developed different tastes and preferences. Their priorities have changed. The way they used to perceive market offerings has evolved. Now we observe a high-tech acceptance rate. The desire for easy accessibility has increased.
Therefore, this article brings you a combination of three strategies that can help you revive your business in 2021.
Right-size and develop your human resource
Many businesses had to do mass layoffs, and so right-sizing has already become inevitable for them. However, companies can also focus on developing and training their existing employee base. The increasing trend of online education can significantly help in this regard. Companies can sponsor programs like online MBA no GMAT AACSB to their workforce as part of their developmental plans. It allows employees to build on the latest business knowledge and trends. Moreover, the ease of access offered by these online learning avenues provides more benefits to businesses. It is also evident from the high enrolment rates of online business programs post COVID.
Numerous skills, including digital marketing, Fintech, process automation, virtual business interaction, and remote management, have become the new norm in the business world. Any business that is trying to revive its operations must have a capable workforce to perform these tasks. The best option any business is left with is developing existing talent and training them for contemporary requirements. Companies spent around $82.5 billion on the training and development of employees in the year 2020. If we look at the restricted business activities, this expenditure is reasonably necessary.
Sketch a comprehensive relaunch plan
The current strategies for business environment has become highly volatile and uncertain. So many new market variables that were previously negligible are now significant. Businesses need comprehensive planning to ensure a safe and calculated relaunch attempt. Currently, the financial conditions are unforgiving. A single mistake can take your business down the dumpster. Therefore, robust backend planning has become inevitable to ensure business longevity and financial security. It will provide you a systematic approach for production schedules, marketing efforts, sales budgets, and procurement plans. Your business operations will become more resistant to external disruptions and apt to recovery.
A smart strategies for business relaunch approach is where you prioritize recovery options. The strategy should encompass countries, sites, segments, customers, and products in which the business operates. It will enable you to return to business and start your operations quickly. According to McKinsey, the business revival rate ranges from a promising 80% to just 20% in various regions. The difference lies in planning a business revival. In different parts of the world, governments are executing efficient economic revival plans. Businesses are quickly getting back to normal there. In comparison, some regions lack in the planning phase, and their companies are struggling too.
Make friends with the digital world
One of the many new avenues that the COVID pandemic incorporated into our lives is the high rise of digitalization. According to the OECD, most countries observed a significant increase of 60% in web traffic soon after the pandemic breakout. More and more people started using online alternatives for shopping and other routine tasks. The trend will stay and grow further. Therefore, strategies for businesses need to adopt the market trend and evolve with time.
Any business trying to revive in 2021 must possess all these digital tools to stay competitive in the market. As per the figures quoted by Statista, global spending will reach $1.3 trillion by the end of this year. Every function of business has absorbed digitalization in some ways. Modern-day marketing is useless unless you bolster it with digital and social media marketing. Finance cannot survive unless you incorporate online payment platforms. Similarly, human resource and supply chain management will lag if not complemented with the proper software implementation.
The world has faced severe challenges like the COVID pandemic previously as well. However, the equilibrium bounces back each time. Our motivation to survive creates new inceptions. Hopefully, it will happen again, or it has already started. Despite devastating financial losses, businesses are reviving. Consumers are coming back to the global markets. Now your planning and preparation will determine your success in the current environment. Therefore, follow the guidelines mentioned above and equip your strategies for business for a new beginning.