The coronavirus has changed a lot of things about how we live and interact but one of the major changes that is currently unfolding is how it is affecting our businesses. The coronavirus has struck the most important life blood of the world’s economy which is businesses, both large and small.
As a result of that, the economy of Nigeria and most of the countries of the world would likely take a hit. Our hope is that the virus dies out very soon but, in the meantime, these are some business that would be most affected:
Travel Industry
A lot of the companies in the airline industry are already recording massive losses as a result of a drop in travelers. People are afraid of catching the coronavirus in airports or foreign lands. So, it is expected that many of these companies might begin to lay off some workers. It can be anticipated that the same thing would happen in other similar industries like road transport (taxis, buses etc.)
Importation/Export
Nigeria is heavily dependent on importation for its supply of basic items, and a large percentage of the items come from china. Currently many factories in and around the wuhan city (where the virus began) have been temporarily shut down to control the spread of the virus. Therefore importation is slowly becoming tough. We can expect that the cost of imported goods will increase massively.
Restaurants and recreation areas:
Just like the airline industry other tourism and recreation business have seen a drop in patronage especially in countries like Italy where there is a nationwide curfew. People would want to avoid large crowds to prevent exposure to the virus. Therefore, vendors in the events and party business might experience a drop in sales as well.
Luxury Items
Because of the increased cost of basic goods like food, clothing, home supplies, most people would cut down on luxury goods in other to afford the higher cost of living. Businesses that sell luxury goods would have to work harder to reach their customers.
Our Hope and Prayer is that the virus does not continue to spread and we all need to do our part in taking preventive measures. For more information on how to protect yourself and those around you click here.
Small businesses need to prepare financially for any effect on their operations. Companies in America are already making plans to resolve issues that they might face in case they have to ask their staff to work from home or find alternative sources for goods.
They have also began to warn their investors to expect a loss in their report for this year. This is to ensure that everyone is financially prepared for the effects of the coronavirus on the economy. As a business in Nigeria, you must do the same
How can you prepare your business and your finances?
- Cut down on expenses: This is a time to conserve cash to ensure that your business has the required cashflow to keep your business afloat through the rough patch.
- Focus on customer retention: The same way that you feel you need to cut your costs, your customers would most likely want to do the same. Focus on retaining your customer by making your product and service convenient, affordable and safe.
- Find different ways to provide your service: As many people avoid the traditional methods of doing business, such face to face meetings, travelling, large gathering like markets, you must find new way to provide your service to customers.
Hope these tips have been helpful. See more on our services by clicking here
