Ways That Could Save Your Businesses from Bankruptcy during Covid-19
- Cambodianess
- April 30, 2020 6:56 AM
Since Covid-19 began to wage war on humanity, various businesses, regardless of size, decided to immediately shut down. Some businesses take risk and remain in operation. Others continue operating despite loss in revenue. Sothie and Samnang are raising a simple question yet difficult to answer: What ways could possibly be taken by struggling businesses to avoid financial suffocation?
Sothie: Samnang, my pal! What are the ways that could save businesses, which are barely managing with their shaky revenues?
Samnang: As always before I begin, I must point out that I have limited knowledge regarding day-to-day business operations. I have some overall knowledge but no practical know-how about business.
Sothie: Alright! What you know is already enough for me. Please don’t be annoying. Just tell me how could struggling businesses be saved?
Samnang: In the era of COVID-19, businesses are using various techniques to stay afloat for the time being and avoid bankruptcy. Some businesses reduce their activity to only 10 percent of their usual operations. They also lay off a large portion of their workforce to keep expenditures as low as possible. Other businesses negotiate with their employees to reduce their salaries without making major compromise on work activity. Business owners will maintain their employees’ salaries at usual levels at as long as there seems to be a good increase in profit. The third way is…
Sothie: The third way is…?
Samnang: The third way is that some businesses will reduce the overall salaries of their workforce to an acceptable amount. Then, businesses start eliminating the non-essential, less productive or unmotivated employees or, to put it simply, employees who don’t put much effort into their work. Furthermore, business owners must discuss with their landlords reducing their rent.
These three approaches, if all parties involved agree to them, could be effective in keeping businesses breathing for the next few days or weeks. However, knowing what will happen later this year is impossible: No one can tell the future for businesses, except the COVID-19 coronavirus.
