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Counterintuitively, Your COVID Comeback Should Be Underway
By Judith Bachman
Even as COVID cases spike again, some entrepreneurs have started preparing for the post pandemic economy, particularly with positive news on the vaccine front enabling us to envision a true return to normal.
Although the pandemic has devastated many, and has depleted capital and resources, now is the time for businesses to ramp up and prepare for a post-recession cycle. It may not be easy but the longer a business lingers in a state of paralysis, the harder it will be to climb out of the hold. This economic downturn, after all, in unlike the ones we generally understand.
Past recessions were either due to normal business cycles or structural causes. A cyclical downturn in the economy is an organic periodic occurrence that tends to wane after a few years but might recur later. A structural recession is not caused by normal cyclical fluctuations, but by persistent structural problems. A structural recession might be one, for example, caused by an industry wide shift to automation leading to significant unemployment in a large sector of the economy.
The current economic conditions are not caused by either normal business cycles or structural issues. Obviously, the business challenges we face are caused by the once in a century pandemic. As bad as things are, as soon the COVID crisis passes, the economy could quickly recover. People will travel, patronize restaurants, visit entertainment venues, and return to work in the office.
Aggressive entrepreneurs are preparing for that moment.
To start, some business owners have begun adding to their staffs by drawing from a larger and better qualified pool of candidates than they have had access to in years. Because many businesses were unsure how they would fare at the start of the pandemic, many workers were laid off. Opportunistic entrepreneurs are jumping ahead of their competition by hiring from this pool of better qualified candidates now.
Other entrepreneurs are seizing the chance to acquire or lease commercial property at bargain prices. One recent report noted Manhattan office space can be subleased at 50 percent discounts from pre-pandemic rates. Business owners with a long-term outlook are snapping up those deals to lock in low prices for years to come.
Forward-looking business owners are also doubling down on their investments in marketing.
Traditionally, in an economic downturn, businesses cut their marketing budgets in a cost saving effort. For those entrepreneurs who are moving headlong into the post pandemic world, the fact that their competitors have paused advertising has given them a leg up to build brand. They are investing more money than ever before into marketing to ensure that they are top of mind for their present and future customers.
While opportunistic entrepreneurs are taking every step possible to prepare for success in the post-pandemic economy, even the very act of taking those steps, may by itself, help ensure their good fortune. After all, in any market conditions, by hiring better candidates, acquiring low-cost real estate, and increasing marketing, businesses are likely to succeed.
With that, more risk averse business owners should give a second look at preparing for a post-pandemic world.
Judith Bachman is the founder and principal of The Bachman Law Firm PLLC in New City. judith@thebachmanlawfirm.com 845-639-3210, thebachmanlawfirm.com