TOW#535 — Corona economy
Just like everyone else, we too can’t pretend as if nothing’s happening and so inevitably I’m turning my attention to this newly emerged situation, and how it’s affecting us and our daily lives.
We’re bombarded with all sorts of information about the new enemy — the coronavirus. We’re competing as to who has newer and fresher information, and who’s heard new statistics, analysis and conspiracy theories. This in addition to how to protect ourselves, how to wash our hands and not get infected. All of the focus, or at least the vast majority, is on direct combat with the enemy. When we’re under attack and our lives are in danger (as is now the case with the virus), our brains completely transform, focusing and thinking about only one thing — survival! In other words, how to protect us from the enemy’s attack.
The way in which all of this is affecting us, our psyche and our lives in general, is a subject for widespread debate and analysis, which is something that’s already happening a lot on Facebook, of course. Nevertheless, what I want to emphasise here is that we’re currently much less focused on the other indirect (negative) developments and effects of this fight for survival against the virus. It’s normal to have this attitude since it’s psychologically very difficult to fight on two fronts. On the one hand, the virus is attacking with an entire army, while on the other we need to survive this attack and continue to function as normal.
The economic impact that is yet to come, but will be with us in the upcoming period, may be even worse than this ‘first’ enemy. The analysis says that many small and medium-sized enterprises will be severely affected (if this continues for some time, of course), while the large ones are also far from safe unless they make urgent changes in strategy and working processes. Some research I read says that as much as 35% of companies are taking a “wait and see” approach to what’s happening, and will then react. It’s good that most are ready for action and change, but I found this number (35%) very high.
As difficult as it may be, we must find the way, the strength and the wisdom to survive this whole situation together with our businesses. Taking action, being proactive, is the only thing that can be done at this moment. We mustn’t wait to see what happens, but we must think like visionaries and adapt and respond to current events — even though we risk making a mistake in our forecasts.
Here’s what can be done:
• Accept the situation: this isn’t a fight on only one front, but on at least two (probably more). This is the first thing you must accept. Deploy your brain immediately onto multiple fronts and shift focus from one situation to many;
• Transform the business: something must change! Even if you aren’t too busy following the negative economic developments, something needs to change with your strategy or operating tactics. Think about expanding the business, adapting or completely changing and, if possible, using your current resources;
• Think outside the box: this is the best time to actually implement this often quoted phrase. In this moment there are no ‘stupid’, ‘crazy’ or ‘whacky’ ideas. All ideas are welcome;
• We’re all in the same boat: this isn’t just about owners and directors, it’s about all working people. This is affecting everyone. And everyone must help. If anyone has anything to say, to suggest what can be improved in the company, then they should find a way to say it. Every suggestion is welcome. And managers should of course embrace and look positively upon initiatives of this type;
• Joint brainstorming with your team: involve the whole team. Set up working groups to discuss how to survive this situation. Respect and listen to everyone’s ideas and suggestions. If you have a large team, create some kind of way to survey everyone so that each employee will be able to contribute;
• Widen sales channels: every company has its own core sales channels. Now is the time to expand those channels. Think about online sales, about reaching new target groups, and how to open new innovative channels where you can sell. I’m sure if you think hard enough, you’ll figure out two to three new channels;
• Increase the number of clients: local, regional, international. All companies live from their active customers. But in situations like this they’re either reducing the frequency of purchases or delaying them. That’s why you need to think of new ways to expand your customer database;
• Invest in marketing and sales: everyone cuts their sales promotion and support during times like this. Of course you have to have a rational and home-based approach with your investments, but don’t completely cut off promotional and sales activities. This is something that will help you develop the points mentioned above.
I know it’s easy to write/say all of this, but I’m writing this mostly in order to motivate myself and to think proactively. It’s nice that during this time we’re all practicing the Buddhist concept of “live in the moment”, but now’s also the time to think proactively and turn your attention to what’s to follow.
Wishing you success with the changes to come,
Petar Lazarov
Member of the Team
MACEDONIA-EXPORT Consulting
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