COVID-19, also known as the coronavirus, is affecting hundreds of thousands of people around the globe and has caused thousands of deaths worldwide.
It’s a tiny virus that spreads among humans like wildfire spreads in a thick forest. It doesn’t exactly have a high fatality rate, but it’s indeed very dangerous due to it’s spreading capabilities. Needless to say, it’s affecting human life in a devasting way and doesn’t plan to stop doing that anytime soon.
With the massive wave of human health concerns, it brings many other minor waves with it. One of these waves is the highly-negative impact on global businesses. Economies are getting affected by the massive lockdowns throughout the globe. Businesses are being paused and employees are losing their jobs.
In the next few minutes, you’re going to learn everything you’d need to know about how COVID-19 can affect your business.
How does COVID-19 affect businesses?
In the United States alone, the stock market has lost one-third of its total value. That means it has lost almost all its value it gained since President Donald Trump took over in 2017. That’s a huge blow in the face to solo investors and investor businesses.
Almost all of the businesses where people gather around are closed. That includes restaurants, theatres, airports, tourist spots, and many, many more. When all these businesses are closed, that means they’re not profitable at all. No profit means a massive loss to business owners and investors.
If your business is still operational by man-made machines and your production lines require imported products, you’ll probably have to pay a higher price for these products. The shortage of supply due to transport shutdowns increases the prices of these products. Ultimately, it ends up causing even more devasting damage to your business.
Even if your business relies on online maintenance and you don’t require human beings to run it, it’s to be noted that your potential customers are also facing the lockdown. As people won’t be able to go around shopping for the products or services you provide, there’d be no earning for you.
If you have an online business and the products or services you provide are delivered to your clients on their doorstep, you might still face a huge degrade in your sales. That’s because, the companies which handle the shipping of your products or your employees who deliver your services, are not functional due to the lockdown.
The businesses which rely on importing multiple raw materials to create their products are especially affected as the supply drop of any of the required raw material could cause the business to halt.
Transport and tourism businesses are also facing a huge impact as all the transporters, hotels, restaurants have been hard hit by the COVID-19 outbreak. Businesses relying on new product launches also receive a massive hit as majority of the product launches are being halted. For example, no smartphone manufacturer is able to release their upcoming smartphones upon planned schedules.
No matter what’s the operational methodology of your business, COVID-19 is very likely to negatively affect it. Supply chains are being interrupted, supply is being halted due to import shutdowns, and import product prices are destined to be higher due to transport difficulties. All these factors can make your business lose a major portion of its profit in the neat future.