Understanding the COVID-19 Economic Impact Can Prep Your Business for Growth
These days it seems like all anyone can talk about is the Coronavirus. As it continues to affect schools, health centers, nursing homes, and the global economy, more and more employees are switching to remote work. And the media is taking advantage of it.
With an influx of information, statistics, and reports of the virus’ effect on not only the health of our peers and loved ones but the world economy, the outside world–and foreseeable future–are looking a bit grim…or are they?
I’m no psychic, but the global response to the virus is quite amazing. Though the stock market has plummeted and many businesses and institutions are closing their doors, there may be hope in the V-curve.
As we’ve seen time and time again, both economic booms and economic slowdowns eventually come to an end. A mere three months ago, we were in a bull market, meaning all aspects of the financial market – stocks, bonds, real estate, currencies, commodities, etc. – were on the rise or were expected to rise. And then the virus emerged.
So, what is this other “V” word? The V-Curve!
“When you think about a V-curve, it is exactly like you picture,” says Andrea Eisfeldt, an economics professor at the UCLA Anderson School of Management. “You have a fairly sharp drop, and then a fairly speedy recovery.”
As a health shock is primarily driving the recession we’re now in, it will likely have a quicker recovery rate as opposed to an “L-shaped recession,” which has an even steeper decline and prolonged recovery.
As families and workers worldwide take precautionary measures and self-isolate, we’ve seen companies around the world react similarly. Conferences, events, festivals, and more are being canceled or postponed left and right. Sports games and entire seasons are either canceled or postponed indefinitely. And we’ve already seen the positive effects of these actions. Chinese hospitals are discharging patients, and temporary hospitals in China are closing down — and life is beginning to return to normal.
On social media, several have joked that due to hockey cancellations, Canadians have nothing better to do than to look for a cure – and in a matter of days, Sunnybrook Research Institute, the University of Toronto, and McMaster University were able to isolate and replicate the virus in a lab.
“The isolated virus will help researchers in Canada and across the world develop better diagnostic testing, treatments, and vaccines, and gain a better understanding of SARS-CoV-2 biology, evolution and clinical shedding,” the research team said in an official statement.
What Does This Mean for My Business?
In short, you can interpret this as — hopefully — the end is nigh. No, not the end of the world, but the end to this recession, pandemic, and international fear. While it may still be a while, there is hope that Wuhan’s success will be reflected here as well. And we should prepare for that.
As we enter the low point, please keep in mind that we will recover. Humans are, if nothing else, resilient. We will improve and learn from our mistakes, and hopefully never have to endure this pandemic again in our lifetimes.
So, when the recession slows and the economy begins to pick up, my question to you is: are you prepared?
As Alexander Graham Bell once said, “before anything else, preparation is the key to success.” By preparing for the upturn of the economy through investing in new technologies, forecasting trends, and remaining optimistic to your clients and peers, not only can you position your company to bounce back but grow exponentially when the recession comes to an end. We’d like to recover from this recession with you, and we’d like to be part of the reason your company bounces back stronger than ever with the best technologies in place to succeed.
It might be a stressful time, but always remember that you are not alone, and you don’t have to go through it alone. At the end of the day, we are all human beings and not defined by our titles. So while we are not therapists here at BrainSell, if you find yourself stuck or need tech advice, we’re here for you. And maybe, somewhere down the line when the economy recovers, you’ll turn to us for your technology needs.
Has your company already switched to remote work? Here are some tips for how to enable your remote workforce to collaborate and be successful.
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