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Philadelphia, PA | Economic Impact of Coronavirus | Business Development News 

Wondering about the effects of coronavirus on the world economy? Read on to find out the economic impact of COVID-19!

The coronavirus (COVID-19) outbreak has taken the world by storm. It has led to some major disruptions in the global economy. In these difficult times, businesses need to stay informed about how the pandemic is affecting the world market. If you are aware of the exact impact of the outbreak on the world economy, you’ll be better equipped to deal with its fallout and keep your business afloat.Markets

So, here’s how COVID-19 has affected the global economy:

The Channels of Global Economy Have Been Disrupted

The virus has disrupted three major channels of economy – supply, demand, and finance. Here’s how:

On the supply front, the sudden halt of production in most adversely affected areas has resulted in global value chains. If left unaddressed, these disruptions can potentially lead to widespread factory closure. On the demand front, the reduced income in terms of unpaid indefinite leaves and even layoffs combined with a fear of COVID-19 has resulted in lower private spending. Lastly, on the finance front, risk aversion and chances of liquidity in the face of the pandemic has caused stress in the global financial markets, which has started affecting the global economy.

Considerable Increase in Unemployment

There has been a massive increase in worldwide unemployment. In the US, a whopping 17 million American citizens have sought unemployment benefits during this crisis. The ILO has estimated that the COVID-19 lockdowns are affecting about 2.7 billion workers! The pandemic will continue to affect all workers, not just those who have underlying health conditions. Moreover, the total loss of jobs in 2020 will depend entirely on how the pandemic shapes up in the coming weeks.

Capital Flight and the Possibility of Insolvency and Bankruptcy

Coronavirus has already caused capital flight – a massive exodus of financial assets and capitals – in various emerging markets such as India, China, and Brazil. Due to the pandemic, these countries, along with 21 others, have seen a loss of US$70bn in investments in the past two months. This capital flight has rekindled doubts that countries such as Turkey and Argentina might default soon. This is due to the continued currency depreciation in these countries.

Significant Reduction of Foreign Direct Investment

The COVID-19 pandemic has also affected foreign direct investment. According to UNCTAD, there will be a 30% to 40% collapse of global FDI during this year. The countries most affected by the virus will naturally suffer the most; however, other countries will also face the impact in terms of the supply chain disruption for multinational companies. Many of these companies are reducing their foreign expenditure. The energy, airlines, and automotive industries have suffered the most.

Global Losses in Various Industries and Markets  

Due to the slowdown in the production and export of manufactured goods and the global slowdown in demand, countries and companies are facing an economic crisis. Most industries are dealing with major losses in terms of revenues. In China alone, the pandemic caused retail sales to drop a staggering 20.5% in February, a time when the outbreak was out of control. Naturally, the travel industry ranks pretty high amongst the industries hit hardest by the virus. It is estimated to lose around 820 billion dollars! According to IBIS, countries such as Canada, the US, and Germany have seen recurrent losses in the domestic market. The food industry, in particular, has suffered losses due to the closure of restaurants, pubs, and caterers.

All in all, the COVID-19 pandemic is estimated to cost the global economy a whopping $2.7 trillion! This is why you must act smartly to keep your company afloat during these trying times.

For sound professional guidance and business solutions to deal with the ongoing pandemic, visit our website today!

Philadelphia, PA | Things Businesses Should Do in the Wake of the Coronavirus

Wondering whether you should use a canopy tent for your upcoming event or not? Read on to find out some fantastic benefits of using a canopy tent for an outdoor event!

It has become evident that the COVID-19 pandemic will have long-lasting economic consequences for businesses worldwide. While it might be tempting to lay low and focus on biding your time, now is the time to act, stay ahead of your competitors, and prepare for what’s to come!COVID-19

So, here’s how you can succeed during these difficult times:

Identify the Challenges to Your Business

The first step to dealing with the COVID-19 crisis is to make a comprehensive list of challenges that your business might face due to the pandemic. After all, to effectively deal with a crisis, you need to know exactly what you are dealing with. You need to have solid strategies put in place that take into account every possible scenario that you might have to face. This includes disruption in your supply chain, communication difficulties, lack of customers, work from home dynamics, and more.

Plan and Think of Solutions with Several Scenarios

Once you have a checklist of all the possible scenarios you might have to face, it’s time to think of multiple effective solutions for each one of them. After all, it’s impossible to predict how this pandemic will continue to pan out and affect your business. So, it’s best to prepare different strategies to deal with various outcomes. This way, you won’t be caught unprepared for what’s to come next.

Adapt Your Offerings to Suit the Current Times

Due to the ongoing COVID-19 lockdowns, people are practicing self-isolation and trying to stay at home at all times. This has posed to be a difficult scenario for B2C businesses worldwide that rely on face-to-face interaction with their customers. The need of the hour and the way to get ahead of the curve is to think creatively. So, brainstorm solutions that can help you deliver your services and offerings to your customers. For instance, if you run a restaurant, then you can offer free home delivery and discounts to attract customers.

Market With COVID-19 in Mind

Ask yourself whether the product or service that you want to offer is relevant or of use in the current times or not. If it is, then great! However, if it’s not, then make sure to alter your service to suit the crisis and reflect that in your marketing. The key to dealing with the coronavirus fallout is effective, flexible, and relevant marketing. Also, make sure to stay honest and try to connect with the public by addressing the difficult times and ways to deal with them. Additionally, don’t forget to make sure that your target audience knows that you are operational and going strong!

Use Alternative Ways to Maintain Daily Operations

The coronavirus has disrupted the regular business operations of most companies worldwide. It will continue to disrupt your plans, communication channels, and all daily operations. However, instead of simply canceling your daily operations, think of creative alternative solutions to ensure that your business keeps running smoothly.

Make use of technology to stay in touch with your remote workers, enable all of your staff to work from home, plan and conduct important meetings through FaceTime, and make use of document sharing software and business planners to stay on top of your game. Stay in touch with your workers at all times via calls, messages, e-mails, and instant message-chains. This way, you will be able to maintain your daily operations as effectively as possible.

 

There’s no telling how the COVID-19 pandemic will continue to unfold. This is why it’s critical to plan and prepare for every possible eventuality. Stay flexible and be willing to adapt to day-to-day changes. That’s the only way you will be able to stay afloat and even succeed during and after this pandemic.

If you want effective and relevant business solutions from professional consultants during these trying times, then reach out to us today!

Philadelphia, PA | Inspirational Business Models for Your Next Business Idea 

Wondering how to come up with an innovative business model? Read on to find inspiration from some of the world’s very best business models!

A solid business model allows a company to stand out from its competition and keep its customers happy and satisfied. Some companies in the world have the most innovative and effective business models today. What helps them come up with these models is having a deep and thorough understanding of their customer base and doing everything in their power to meet the needs of their customers.Easy Bank

Check out the following companies and their business models to take some inspiration and create your business model:

Airbnb

Airbnb is an online market that allows people to list, discover, and rent lodgings such as single rooms, apartments, houses, and so much more for a processing fee. However, what makes Airbnb truly special is that the accommodation provider doesn’t own a single room! It does not even rent the housing form the host. It just acts as the platform where the interested parties – the renter and the host – can find and freely interact with each other.

Alibaba

Alibaba Group is the biggest e-commerce company in the entire world. What truly stands out about Alibaba is that it has no inventory! Its long tail competitors such as Amazon buy the merchandise and then sell it to their customers via their system. However, Alibaba’s primary focus is to connect potential buyers with sellers. The reason why Alibaba manages to stand out is its solid software interface.

Hilti

Hilti is a Liechtenstein multinational company that invents, manufactures, and markets different products for maintenance, construction, and mining industries. The company has truly disrupted the industry by coming up with a rental business model rather than the traditional purchase model. Their model is based on the fact that companies don’t need or want to own every single tool imaginable to mankind, they just need to have the right tool at the right time. They handle the maintenance and repair of the tools and their customers rent these tools whenever the need arises.

IKEA

IKEA is famous for its ready-to-assemble furniture and home accessories. The innovative business model of IKEA includes globally sourcing its materials, setting up accessible suburban stores and outlets, and selling quality products at a comparatively low cost. What helps it stand out from the competition is taking out the time and effort to provide in-store amenities such as restaurants, coffee shops, and even day-care facilities.

Zara

Zara is a Spanish retailer renowned for clothing and accessories. It’s one of the world’s most recognized fashion brands. Zara utilizes a super tight supply chain by producing where it sells. This allows it to adjust to the current fashion trends within two weeks! This enables them to come out with new products and to replenish their sold-out products as quickly as possible.

Easy Bank

Easy Bank is the second biggest direct bank in Austria. It provides a vast range of financial services and products to its customers, without having a branch network. This allows the organization to keep its infrastructure costs to a minimum and offer its banking services without charging the account and transaction fees that banks typically charge!

Take inspiration from the business models mentioned above and come up with your own inspiring and effective business model.

If you want some sure-fire business advice and solutions, then reach out to Trusted Advisor today!

Philadelphia, PA | Identifying the Major Loopholes in Your Business Strategy

Wondering how to come up with a solid business strategy? Read on to find out some common loopholes and mistakes that you need to avoid to end up with an effective strategy!

Many times a business suffers due to the execution of a strategy that has many loopholes and mistakes that could have been easily avoided with some thorough thinking and proper planning. However, these are mistakes that businesses keep on repeating over and over again. If you simply avoid making these mistakes, then you can come up with an actionable and effective business strategy.Competition

So, here are some major business strategy loopholes that you need to avoid:

Reusing an Old Strategy

Listen, we understand the need to hold on to a great strategy; however, it’s important to make sure that said strategy is as relevant today as it was last year. Owning to the fact that our world is incredibly fast-paced, it’s rare to land a strategy that you can keep repeating year after year. So, make sure to tweak your strategy according to the current trends and standards rather than trying to relive the past.

Trying to Execute an Elaborate Strategy

Another misstep is to come up with intricate and overly complicated strategies. The more complicated a strategy is, the harder it is to execute. The best way to go about forming a business strategy is to make sure that it’s effective rather than complex. More often than not, an effective and solid strategy is pretty straightforward and easy to execute.

Sidelining the Needs of Your Customers

The first step in creating an effective business strategy is to think of your target audience and consumer base. Think of what your customers need and want from you instead of sidelining their needs to run after some other goal. Try to figure out and understand everything you need to about your target segment so that you can come up with a desirable strategy. Ask yourself pertinent questions such as:

  • How can I meet my customers’ needs?
  • What problems can I solve for them?
  • How can I ease and facilitate my customers’ journey?

Not Looking at the Competition

Another loophole that’s common in business strategies is the lack of insight. To come up with a solid strategy that can withstand and outrank the competition,you need to be aware of what your competitors are coming up with. In short, you need to have comprehensive know-how of the current market trends.

Figure out what has worked for your competition and what hasn’t and incorporate that knowledge into creating a foolproof strategy. Keeping a keen eye on the market will also help you align your strategy with the changing expectations of your target audience.

Not Having a Set, Long-Term Budget

A crucial step in strategic planning is to have a well-defined budget. Any strategy will suffer if you don’t have the monthly finances to execute it in the long run. You need to monitor the financial growth and progress of your strategy and modify it accordingly. The financial aspect of creating a strategy also involves having the necessary funding to implement it – this includes the hiring of new talent and investing in new systems.

By avoiding the aforementioned pitfalls and loopholes, you can create a business strategy that’s valuable and effective.

For impeccable, wide-ranging business solutions, reach out to Trusted Advisors Network today!

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BIO: We partner with organizations to help them accelerate & grow profitable marketplace advantages by helping align people and processes with strategy. How we do it is dependent upon the specific needs of each client, however, the results are palpable!