The pandemic has had a significant impact on the corporate world, as some employees are no longer available to work, and businesses have had to adjust their operations. The road to entrepreneurship has also changed with fewer opportunities available and a more cautious approach required. In the short term, this has meant that many businesses have been forced to close down while, in the long term, it has led to new opportunities for those who are able to adapt. Let’s run through some of the most obvious ways that the pandemic has shaped the new corporate world that has emerged.
Communication
The most apparent change is the way that companies are communicating with their customers, both current and future. Many businesses have shifted to more digital means of communication, such as text messages and email, in order to limit contact. Phone calls are being made only when absolutely necessary. Companies are also communicating with their employees differently. Meetings and other forms of communication that involve people gathering in person have been replaced with conference calls or video chats. This allows employees to work from home, if possible, and helps to prevent the spread of the virus.
Travel
Business travel has decreased because of the pandemic, causing companies to find new ways to conduct meetings and collaborate. The use of online video conferencing has seen a huge increase, with Zoom becoming the most popular choice of platform. This has allowed many businesses to continue to operate as usual and it is the saving grace that has allowed many to keep afloat.
Entrepreneurship
The path to entrepreneurial success is always changing but the pandemic has thrown a real curveball when it comes to the approach that’s needed. Education is now more important than ever and many entrepreneurs are taking the opportunity to take out a student loan and return to college to get professionally qualified. This is giving new startups a new injection of industry knowledge, skill and experience, increasing their chances of long-term success.
Sales
Most businesses have seen a decrease in sales due to the pandemic. Restaurants had to close their doors for many months. Retail stores have also been affected, as people are still not buying like they were pre-covid. It is still too early to tell if this trend will continue for much longer, but it is likely that some businesses will experience a permanent decline in sales.
Operations
Businesses have been forced to make changes to their operations in order to maintain productivity during the pandemic. For some, this has meant working from home, for others it has meant changing how work is done. Across the board, workers are being asked to do more with fewer resources, which has led to increased stress and a decrease in morale. Some businesses have been able to successfully adapt to the new normal, while others are struggling. Those that are struggling will need to make major changes quickly if they want to weather the storm and come out the other side.
Financing
The pandemic has had a huge impact on how businesses are financed. Some businesses have lost their credit lines because their lenders are no longer willing to take on the risk. Banks are also hesitant to give loans because of the uncertain economic climate. This has led to an increase in the use of alternative financing methods, such as factoring and invoice financing. These methods allow businesses to borrow against their receivables, which gives them more liquidity and helps them to stay afloat when they have run out of options.