Building resilience of businesses in the face of crisis

As the broad and sweeping effects of Covid-19 dominated world news, we all witnessed and experienced the parallel spread of anxiety and feelings of instability.

Indeed, in a crisis, our mental state only seems to exacerbate an extremely challenging situation, becoming a major obstacle in itself.

Crisis happened and how can we deal with it?

As a CEO of a company, you need to focus on getting the company through difficult situations with new ways of thinking and acting, so learn how the mind copes, threat of pandemic.

Even without a bunch of bad news, your mind naturally tends to be distracted. As the mind wanders, research has shown that it is easy to get caught up in negative patterns and thoughts. During the current crisis - this trend is exacerbated, and the mind can become more attracted to obsessive thoughts, as well as feelings of fear and powerlessness.

When your mind is stuck in this state, a chain reaction begins. Fear begins to narrow your vision, and it's harder to see the bigger picture and the ability to be creative and positive in front of you.

We are all experiencing the crisis brought about by coronavirus. We are affected by travel restrictions, strong consumer demand declines, and stock price declines ...

The important thing to remember is that before those crises, our emotional and psychological responses to the crisis by narrowing and cluttering our minds and making us unable to see clearly for best actions.

We need resilience, which is the ability to get out of a confined and confusing psychological state to rebalance in new realities quickly.

First, calm down the mind.

When you focus on calming and cleaning your mind, you can pay attention to what is really going on around you and what is going on in you. You can observe and manage your thoughts and capture them as they begin to flee toward the doomsday scenario. You can focus on what you are doing in real-life situations.

This state of calmness and awareness of this reality are very important. Immediately, it prevents the mind from wandering and being attracted, and it reduces the stresses and worries that we may be stuck with.

Looking forward.

Usually, it is better to do something, anything else, instead of sitting with uncomfortable emotions. Over the past few weeks, the crisis may have disappointed you with important business plans that have been adversely impacted by Covid-19.

But deal with this frustration with immediate responses. You need to be set free from the cycle of bad news and keep your mind stable so that the action plan appears quickly and good leadership can appear. You can find clearer answers about the best way to move forward, both personally and as a leader.

Act now, with the following 10 points:

1. Strict cash flow control

You need to control the cash flow closely and do the following immediately:

  • Understand exactly your current financial situation;
  • Identify timely receivables and pursue debt recovery;
  • Control purchases and inventory levels tightly, don't buy more than you need;
  • Negotiate longer terms of payment with suppliers;
  • Negotiate shorter payment time with customers;
  • Adjust the order plan;
  • Work with your bank to find out about support payments and options for dealing with late payment delays.

2. Cut your costs

You must find ways to cut costs right away, find ways to save in every part of your business, including the following suggested expenses:

  • Bank charges
  • Selling and marketing expenses
  • Travel expenses
  • Entertainment and communication costs
  • Research and development costs
  • Expenses for consumer consumption in the office
  • Office rental costs
  • Cost of repairing and maintaining machines and equipment
  • Utility costs
  • Salary expense manager
  • Salary expenses for accounting and tax declaration apparatus
  • Salary expenses for personnel management, salary calculation and insurance
  • Salary expenses for legal work

3. Check the financial capacity of new customers

A major bankrupt customer is really serious danger for your business. Protect yourself by checking immediately financial capacity and goodwill payment requirements for new customers and agree on clear payment terms.

Referring to the customer's payment history will provide additional protection against bad debtors, although this must be balanced with the cost of this reference.

4. Focus on keeping customers

The crisis makes the financial situation uncertain, and therefore consumers will cut back on their spending, so do all you can to keep your customers'.

Loyalty programs, discounts and regular contact can let your customers know you value them.

5. Providing excellent customer service

At a time of crisis is how you need to be able to differentiate yourself from your competitors? By providing excellent customer service!

Consumers value businesses that give them more for the money they spend, especially when times are tough. Effective, fast service and flexible customer support will help convince people to spend with you rather than competitors.

6. Enhancing marketing activities

Enhancing marketing activities increases costs in the short term, however, it is important that this is done effectively and the results achieved commensurate with the costs.

Consider carefully which method is best suited for your business. Keep track of any marketing activities you undertake, to evaluate its success and determine whether it is worth continuing.

7. Focus on what you should sell now

In times of crisis, don't make an effort to try to sell all your products and services, or new, or untested things, even if you love them.

Do not try to apply sales policies at this time. Instead, focus on accurately assessing the needs of the current market for your products and services, so that you can choose exactly what you have strengths and bring the best profit for you right now, and you should prioritize selling those products and services to generate the best cash flow for you.

Because if the demand for your product or service has been frozen, or significantly reduced, the more you try to sell, the more you lose your business.

8. Train your staff

Your employees are one of your greatest assets and can be the key to retaining customers and maintaining your business. Training is important to their personal development and the productivity of your business, so don't eliminate your training plan.

Moreover, in times of crisis, people tend to get closer, increasing interaction with your employees now creates a strong connection with the staff, and this is an important asset to help you. pass the crisis.

9. Restructure your operation

You might consider moving to smaller facilities that sell out excess equipment, reorganizing work more flexibly and more cost effectively.

10. Step by step move up online

An online marketing or sales channel will take you to a larger market with minimal cost. Plan and access the right online sales resources right away.

Learn and accept changes in the way you interact with your business, enhance online tools (online), reduce offline processes (offline).

online support

Our tax and accounting experts will consult online to answer your questions.

I was surprised to receive enthusiastic advice from the Board of Directors of EXPERTIS. The problems are always answered very quickly and handled well. I feel secure with the service and commitment that EXPERTIS brings to TPM Outdoor.

BA DO BAO LIEN THY
Director, TPM OUDOOR, SINGAPORE
EN VI