The Covid-19 pandemic might seem like an event of the past, however, the reality is many small businesses are still dealing with the effects of the virus. The multiple lockdowns we faced in the last couple years have left a lasting impact on the world economy and the way many businesses operate.
In this article we’ll discuss the effects of the pandemic on businesses, why some of them might still be struggling and how you can help your company recover.
How Has Covid-19 Affected Businesses in the Long Run?
Different industries have been affected differently by the economic downturn that resulted from the coronavirus restrictions.
Temporary closures during lockdown, reduced travels due to restrictions and working from home and a growing demand in online shopping were only a few of the trends that emerged as a result of the pandemic.
The hospitality industry, including hotels, restaurants and pubs recorded almost no profit in the second half of 2020 and many of them are yet to recover from the loss of revenue in the following years due to restrictions.
Consumer-facing industries such as retail suffered a loss as well, however, those who had online shops ready and running managed to bounce back with the help of the high demand in online retail. Other smaller retailers who don’t operate online though are yet to fully recover in terms of revenue.
Are Businesses Still Struggling With the Aftereffects of the Pandemic?
Although things have stabilised since the start of the pandemic many small businesses are still facing difficulties. With other recent events like the war in Ukraine and the worldwide recession, bouncing back is even harder for companies. The global economic crisis, rising electricity and gas costs and labour shortages are only a few of the setbacks that businesses are facing post-covid. To combat this many businesses have to work with reduced hours which only creates a bigger divide.
On the other hand, however, a lot of businesses are taking this as an opportunity to improve their office space and change their operating model.
How Can You Help Your Business Recover?
One thing that businesses have had to learn during these turbulent times is resilience. If you want to make your business future proof, you need to adopt a long-term resilience strategy. Plan and prepare for possible disruptions to your business by designing a crisis response plan aligned to your business strategy, goals and objectives.
Another Making a recovery after the pandemic has been hard for even the biggest companies. To secure your company’s growth and ensure you’re making the right financial decisions, it’s important to speak with an advisor, who will be able to provide you with insight on the best steps to take. Experienced financial consultants such as Accuracy can help you with valuable business advice.