Is it possible to remain profitable during a pandemic, such as COVID-19? Many are those who would answer this question in the negative, but the truth is that there is a lot that you can do to optimize profits. COVID-19 is one of the most severe disasters to happen in the history of the globe, and its destruction is evident in all sectors. The effects have been very severe for businesses, with most of them being forced to scale down and even running at losses. In this post, we will highlight some useful strategies that you can use to outshine competitors during a pandemic:
Expanding Your Portfolio
It is true that your focus is on producing a specific product, such as food or auto parts, but you should consider expanding the portfolio to other that are in demand during the pandemic. For example, COVID-19 shot up the demand for key products, such as hand sanitizers, tissue papers, and masks. Even if your facility does not focus on these products, this was an awesome area to venture into and rake in high profits.
To demonstrate how you can expand your portfolio, we will take the example of the United States. When COVID-19 struck, Food and Drug Administration (FDA) relaxed the rules for producing hand sanitizers so that more players could join and help increase the supply. This was a golden opportunity for manufacturers to expand their portfolios.
If you do not want to buy new equipment for producing the products on demand during a pandemic, consider leasing them. You might also consider subcontracting the production through another company.
Motivate Staff in Your Company: Iskander Makhmudov
One of the best strategies for growing your company, including periods of disasters, is motivating your staff. According to Iskander Makhmudov, the main owner of copper producer UGMK, your staff might be the main gateway to outdoing competitors through innovation. All they need is for you to demonstrate concerns for them.
During a pandemic such as COVID-19, you should demonstrate concerns and appreciation by assuring the employees that you are ready to support them all the time. For example, consider helping them by ensuring their families do not get major shocks from the pandemic. You could even extend the medical cover for employees to their families. You should also make sure they get CIOVID-19 vaccine to reduce the risk of infection so that they can continue working in your company.
Rethink Your Supply Chain
One of the areas that were hit hard by COVID-19 is the supply chain. For example, if you relied on material supplies from abroad and the country is under total lockdown, there is a risk of running out and grinding to a halt. So, is there an alternative?
Although the supplies coming from abroad might be cheaper and reliable, turning to local suppliers might be a good idea to avoid closing down. Take the example of a beer manufacturer who uses barley imported from Australia instead of the local supplies. By shifting to the locally available materials, it means you will be able to remain in production without relying on the already stressed supply chains. This will be a better option compared to closing operations.
How you plan to handle your production facility during a pandemic can make or break the company. The three strategies we have described in this post can help you avoid relying on the already stressed supply chains and still make profits where others are closing their operations.