Covid-19 and International Crisis: Are there Positives for Businesses?

Business

Covid-19 has taken a hold of the world for over a year now. With the lockdowns, curfews, travel bans, and more, many businesses have had to close their doors, with some even shutting down for good.

Businesses in industries such as tourism, entertainment, recreational and facilities, restaurants, and airlines are some of the most affected.

This has meant that those that remain operational have gone virtual by allowing their staff to work remotely from home. Some businesses, like dropshipping and those who can provide their services and products online, have managed to stay strong. Here are some ways Covid-19 has positively impacted some businesses.

1. Reduced Utility Costs

Businesses have been experiencing different pandemic phases, but one of the most important things they want to do is reduce the expenses from the bills they pay. Electricity, water, telephone, and the internet are some of the essential utilities every company caters to as recurrent bills. In the graph below from Compare the market Australia Energy, you can see how different countries around are spending less overall monthly expenses through adopting the working from home system. For instance, with UK workers working from home and spending an average of $381USD (211 GBP) a month on electricity, businesses can save a significant amount of money in the day-to-day costs that accrue.

In general, there has been an overall improvement in the amount of money saved on utility bills by companies that promote working from home. As it will not go unmentioned, this is because the number of people in an office directly affects the utility bills. When there is a higher number of office employees, lights in all offices must be on, and machines have to be operational to accommodate every worker, and so on. Reduced operations and maintenance have also observed a significant reduction in the second quarter of 2020 from 1.3% to 0.7%.

2. Lower Worker Compensation Costs

Covid-19 has brought attention to many employers that they need the many human resources they have in the offices. Some are okay to have but not necessary in the company tree. Covid has slashed workers who are not adding value to the company with the pandemic.

For instance, with the government directives to observe social distancing, you can be sure that not everyone will be in a position to step foot in the office. The capacity is so limited that the human Resource Manager and other administrative personnel will have to work from home. This means there will be a lower number of employees in the workstation hence lower compensation costs.

3. Reduced Miscellaneous Expenses

The pandemic has resulted in many normal business operations being put under a fine tooth comb to save costs. For example, travel and vacation costs are expensive to a struggling business and have been made largely redundant because some cities were/are under lockdown, with movements restricted. Meetings are now over zoom and Skype, which narrows down the expenses further. For businesses, working from home also means savings on stationery, office refreshments, transport allowances, fuel, and a bunch of other expenses that are budgeted for each month.

4. Industry Evolution

You may have come across the phrase “never let a good crisis go to waste.” It is hard to admit with the devastation that the Covid-19 pandemic has created, but there is a silver lining in every bad situation. It only depends on how you perceive it, your response, and perhaps how lucky you are. Well, Covid-19 also created revenue opportunities for a diverse range of businesses. For instance, companies producing hand sanitizers definitely benefited. Many apparel industries have also included customized masks in their list of products. With people spending more at home, the use of technology and streaming services has become more profitable in the world of marketing. Last but not least, well-established E-commerce ventures have seen massive returns as many people prefer buying stuff online over physically approaching the shelves.

Well, there has been an observed sense of team spirit brought by this storm. For instance, those in the hotel industry are now doing home deliveries on a larger scale compared to before the pandemic. The same services are likely to be upheld once the pandemic is over, and it will be a win for such businesses because they will have established trust and gained consumer loyalty.

 

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Covid-19 and International Crisis: Are there Positives for Businesses?

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