The epidemic situation of new coronaviruses is continuing to develop. In this case, companies may face various strategic and operational risks, such as delayed or interrupted supply of raw materials, changes in customer demand, rising costs, delayed or undeliverable delivery due to logistics shortages, insufficient health and safety protection of employees, shortage of manpower, import and export Problems with trade-related logistics, settlement, etc.
To help Chinese companies cope with future uncertainties, Deloitte refers to the business continuity plan, emergency response, and major outbreaks adopted by multinational companies in response to multiple major infectious outbreaks such as atypical pneumonia, H1N1 influenza, and Ebola hemorrhagic fever. The leading practice of incident management has put forward the following suggestions: establish an emergency decision-making body; clarify the response mechanism, plan and personnel division; establish an information communication mechanism; maintain employee health and adopt a resumption of work plan; pay attention to the supply chain risk response plan; formulate risk resolution Plan; practice social responsibility; formulate data security management plan; adjust budget and implementation plan, cash flow plan and international trade early warning mechanism; upgrade risk management mechanism.
We are a foreign trade cross-border e-commerce startup. On the tenth day of the Chinese New Year, the company was fully in working condition. We work from home and online, and collaborate remotely through Alibaba and WeChat group. Judging from the company’s current sales data and trends, in addition to short-term fluctuations in cross-border retail platform sales data, domestic retail sales have increased, and sales peaks are expected to occur after the fifteenth of January.
We are just an ordinary foreign trade startup, but we did some things right.
First, online and digital sales channels
As an entrepreneur in the Alibaba ecosystem, all our channels are online. The reason why our domestic retail data continues to grow is because under the epidemic, the housing economy has become mainstream. Once the express logistics resumed, the demand for online purchases exploded unprecedentedly, so we are not worried about sales data at all.
Second, short video marketing is more active
As the epidemic continues, everyone is at home. Douyin, Kuaishou, Station B, etc. have become the main entertainment methods for many people, and short video marketing will naturally become more popular. We deployed short video marketing at the end of 2018, and there are corresponding teams on platforms such as Douyin, Kuaishou, and Station B, so our marketing data is not affected by the epidemic at all.
Third, there is a strong backup of cash flow
In such a special period, cash flow is equal to the company’s lifeline. Whoever has sufficient cash flow will be able to live better in such a crisis.
For our company, because it is in the Alibaba ecosystem, cash flow is very healthy. On the one hand, our own e-commerce sales data has not been affected, on the other hand, Alibaba Ecosystem provides various financing services.
Fourth, online office is the norm
In the foreign trade circle, SOHO office has always existed, especially after the office collaboration tools such as Dingding and WeChat, the efficiency of online office is actually very high. Since the second day of the first month, our employees have been working online through Dingding, WeChat, etc., and the normalization of the first day of the first month has been achieved. They punch cards online, evaluate KPIs online, transact online and respond to customers.
Fifth, the team is stable and confident
Our company is composed of various small teams, and excellent small teams participate in the distribution of company equity. We also implement a partner system. Therefore, for employees, the company is everyone doing a thing together. Under such a company philosophy, the more in the crisis, the more people hold together, the more frustrated and courageous.
There are a few suggestions for entrepreneurs under the epidemic.
First, we must establish a positive entrepreneurial mentality. An entrepreneur is a captain. At such a very moment, we should have the courage to lead the team and inspire everyone’s morale. This is a qualified entrepreneur.
Second, make a rational management assessment. If you figure it out, the company will not have any revenue in the next three months and no other unobstructed financing channels, then immediately take measures to control costs, such as layoffs and collection of accounts receivable. If the financial pressure is very great, you should choose to quit rationally and stop operating.
Furthermore, reflect on and improve yourself. As an entrepreneur, you need to improve your crisis response ability, especially to train your own entrepreneurial adverse quotient, learn to judge macro trends, and make micro innovations. Entrepreneurs can also use this time to think about and review their own operations, check for gaps and fill gaps, improve the company’s system, and optimize the team.
Finally, integrate into the entrepreneurial ecology. Whether you are in Alibaba’s entrepreneurial ecosystem, Tencent or Meituan, you must truly integrate into your entrepreneurial ecosystem and enable yourself to achieve sustained growth and success through ecological empowerment.
Entrepreneurship itself is a practice and improvement, and the best opportunity for improvement is crisis after crisis. Experience crisis, overcome crisis, achieve transformation and growth, this is my experience in coping with crisis in 14 years of entrepreneurship.