The world is facing a situation that is very much uncharted waters for us. As the world closes down due to the coronavirus outbreak, many individuals, entrepreneurs and businesses face hardship and loss. The American economy is facing hard times this year. The coronavirus shutdown has an immediate and longer lasting impact on most companies. Business momentum recovery in 2020 will be critical.
Experts such as the chief U.S. economist Greg Daco at Oxford Economics, says economy is guaranteed to experience a recession. Due to the coronavirus shutdowns, at least two quarters are experiencing economic decline. “We have never experienced something like this”, Mr. Daco said of the outlook. The near lockdown of many major cities is unheard of in leading economies. Not being able to go out or open for business is unprecedented.
Small businesses and startups will be hit the hardest. They have less access to financial resources, credit, and tend to be cash-flow limited. Closing down cuts of the financial flow. Many small businesses after a couple months of being shutdown will not be able to recover. They won’t survive this.
It might get worse before it gets better. Financial crisis like this current situation feeds on itself. Worry, anxiety, stress contribute to further downward spiral. As demand falls with businesses forced to shut down, layoffs spread. This makes a bad situation worse now. As the service industry shuts down more, the difficulty will be felt much more economically then before. It will further stress finances and overall economy.
There is very little some companies can do now. Most have to ride it out. Larger businesses with more financial resources will be able to easier sustain this year. Smaller companies have to try to make it and survive. As we all close for life and business temporarily due to quarantine orders, we wait for the world to start up again.
When this is over and the world starts up again, it will be a race to business momentum recovery in 2020. How can a business recover in the third and fourth quarter of this year? It depends on the business of course. Brick and mortar retailers will open doors for business again. They will start selling products, order from distributors and sales brokers and so on. Restaurants, nightclubs, and bars will open up again for business as well. Manufacturing companies will be able to get startup up again etc.
Momentum lost during the coronavirus outbreak is what many will try to establish again. Business momentum recovery in 2020 will be the focus for many companies, in order to make-up lost sales from the shutdown. How much purchasing power will exist depends on the economic situation we will find our self in later this year? It is hard to predict unemployment rates currently as well as consumer behavior.
One thing is clear, many companies will offer a wide variety of incentives to stimulate consumer groups and generate sales. There will be an increase in marketing and advertising to reach consumers again and start business momentum recovery. Some companies may even get very creative to get people to dine out, drink, join, attend, shop, buy and so on. We may see offers we have never seen before and consumer incentives.
For companies that are looking for professional business services, many vendors will be able to assist. Digital agencies such as Illumination Consulting can assist with business consulting services, marketing services, design and development solutions. Most of these services are to develop business momentum, sales, and customer acquisition.