Finding New Ways to do Business

The Challenges and Opportunities of COVID-19

To say that COVID-19 has wreaked havoc on businesses — small or large — is an understatement. Industry statistics show that more than 90 percent of business owners have endured a negative impact and less than 5 percent have reported having little or no negative impacts. 

Going forward, short-term and long-term outlooks vary widely amongst experts. The common thread is that everyone wants to figure out what ‘recovery mode’ looks like. Whatever the case, businesses must be poised to hit the ground running. 

The Challenge: Business Closures 

Statistics from the Canadian Federation of Independent Business indicate that over 20 percent of small businesses have accumulated no revenue during the pandemic period. Additionally, many business owners don’t believe that their businesses will survive long-term.

Even ‘healthy’ retailers, restaurants, and service providers are failing to stay up on their feet. Without revenue, bills can’t be paid, employees can’t be sustained, and any debt will continue to grow. While the government temporarily provides hardship loans and grants, we are left with curiosity and frustration on what happens next. 

The Challenge: Working Remotely

Working remotely has become the new reality, and the work-at-home model has become viable for both employers and employees. Right now, it means less demand for traditional office space, with future forecasts that differ from industry to industry. 

Tourism and travel have been especially hard-hit and corporate office space has been immensely affected. At the same time, professional service firms might continue as usual, but with significantly altered work environments. Major changes are on the horizon.

The Challenge: National Deficit

In Canada, the estimated federal deficit for this fiscal year will be well above $250 billion. It’s a result of increased ‘emergency’ spending and decreased economic activities — all pandemic related. Chances are the deficit will deepen even more. 

Bottom line, this level of spending isn’t sustainable in the long run. Some foresee taxation levels that are unprecedented, while others believe stimulus measures can save the day. At this point, there remains a lot of unknowns. How much? How big? How long?

The Opportunity: New business

While the negative impacts of COVID-19 should not be underplayed, the outlooks for the business world are not entirely negative. The demand for goods and services are not going away — the delivery may be reshaped – however, consumer demand will revive as lockdowns ease.

Many sectors are surviving the pandemic — such as, tech solutions, food takeout, and mobile services. While other businesses will have to ‘re-tool’ in order to survive and thrive post-pandemic. The good news is that consumer demand will be revitalized anew. 

The Opportunity: Job Creation

Unemployment rates have soared due to the results of COVID-19. Federal and provincial governments are tasked with resuscitating the job market. For a start, there will be major transitions to digital systems — from online videoconferencing to webinar-hosting platforms.

Many more job opportunities will emerge in e-learning, e-commerce, renewable energy and the ‘green’ economy. In particular, the construction industry will be integral to economic recovery, relying on various investment approaches (private and public).

The Opportunity: Resurgence

Currently, it’s incumbent for business owners to be proactive. For some, it can be challenging to move forward without professional support. A Chartered Professional Accountant is an example of a skilled individual that can provide the sophisticated business advise required. 

In today’s unprecedented business environment, professional consulting and advisory can be the difference between surviving and thriving. They can be instrumental in business resurgence, with high-level analysis and a viable development plan for renewal.  

A Chartered Professional Accountant can help businesses assess the damages of COVID-19. Re-appraise business plans, revamp budgets and new spending, and consider funding options for recovery are all examples of how they can assist. Above all, it’s vital to create a contingency plan in anticipation of the next calamity.