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The Covid-19 affected our lives directly and indirectly. It is going to be the straw man to cover many failures which have been made in many companies in the past.
This post is not about analysing the numbers of the virus or about which real danger resulted within this period. Anyone of us is going to remember this spring 2020 which had an impact on everything from life to business and further.
When the world is standing still then it’s obviously that a regular business is impossible to run the way you knew. The C-19 is only the trigger but not the reason for the upcoming economical depression as result of incorrect decisions made in the past! The economy has always its up-and-downs similar to a Sinus wave with changing periods and amplitude.
If you cannot pay your bills by the income of your businessThen it’s just a hobby and not a business.
This spring 2020 shows how financially healthy a business is running. The average time frame for a company used all its profits without any regular cash-flow is 21 days in Germany. This is a shocking fact, if you cannot pay your bills by the income of your business then it’s just a hobby and not a business.. You can generate income with a hobby of course but that’s not the regular case.
Many company owners applied for financial help by the state (at least in Central Europe) in hope to keep their zombie business alive somehow. This is only the final chance before realizing how much can you postpone the moment of awake.
The C-19 is going to be the perfect straw man mentioned as reason for a business which had to close its doors within the next years. The actual reason which could be simply a bad running business due to wrong decisions, wrong setup or wrong strategy is going to get covered by this excuse.
On the other hand it’s also an opportunity to reconsider the situation – this chance might be the golden wake up call for each one of us!
By Jakob Wegrzyk | Sliema, MT | 01/05/2020