Business owners generally get used to overcoming obstacles, but the COVID-19 pandemic was still a tough one to tackle, particularly because of how long its effects persisted.
While many people assumed the pandemic would be over in a matter of months, it dragged on for much longer than expected, with many states, cities, and countries forcing their residents into isolation to stop the virus from spreading. High vaccination rates have allowed business owners to step bravely into a new version of normal, but they still have some overwhelming challenges to overcome.
Higher Costs
Higher costs led to an unconventional recession, which saw many businesses raising their prices to combat profit loss. Those higher prices also meant companies had to devise innovative ways to cut costs. Some were able to find the right serviced office package to lower real estate bills. Others negotiated with suppliers for lower per-unit rates. While such measures were pandemic-specific, many business owners still use these damage-control measures.
As we enter the third year since the pandemic began, prices continue to rise. So, it’s reasonable to suspect that business owners may need to keep this creative thinking up for years to ensure they can break even.
Increased Stress
More than 40% of business owners reported feeling burnt out in recent months, and more than half of business owners haven’t taken a vacation in the past year. More than 60% of business owners also feel mentally exhausted and rundown. In other words, the COVID-19 pandemic has taken its toll.
Many are working longer hours than ever before while dealing with cash flow and worker-related issues that rarely affected them pre-pandemic.
Cash Flow Issues
No one could have anticipated the pandemic dragging on for as long as it did. While most business owners understand the importance of having money set aside for an emergency, many struggled to make it stretch for as long as lockdowns and isolation requirements were in place.
While most countries have now relaxed rules surrounding isolation, many business owners are still struggling with cash flow shortages, especially while trying to rebuild their emergency savings and absorb increasing costs.
Digital Advancements
Previously non-tech-savvy business owners had to change their way of thinking when the COVID-19 pandemic struck. The only way many of them could earn an income was by allowing customers to purchase goods online.
Some businesses stopped providing online goods when stay-at-home orders were lifted, while others have been working hard to grow this part of their business for future-proofing.
Supply Chain Difficulties
Supply chain issues have been challenging for individuals and business owners alike. With ports and airports shutting down worldwide, shipping issues were common. Even now, it can take several months for businesses to access the goods they need to stay operational. This is in direct contrast to pre-pandemic timelines that could sometimes only be a matter of days or weeks.
Customers Limiting Their Spending
Many people lost their jobs during the pandemic, while others found themselves on reduced hours. Those issues, combined with overall rising costs, meant that many households cut non-essential spending. Businesses offering non-essential and luxury goods may have found themselves experiencing losses, and it might take a significant amount of time for that to change.
The pandemic posed a significant obstacle to business owners worldwide. However, its flow-on effects are still pushing some businesses to their limits. While many companies are now fully operational, we must not underestimate the importance of supporting local businesses to help them get back on track.
