[vc_row][vc_column][vc_single_image image=”9551″ img_size=”full” alignment=”center”][vc_column_text]As an owner of an outsourcing company in the Philippines whose business is affected by COVID-19, the questions that came to mind are:
1. What will we do differently after the pandemic?
2. What will our operations look like post-COVID-19?
3. Are we prepared operationally to handle another crisis?
4. Do we have enough cash in the bank to survive the next curveball?
In reality, how we handle COVID today will have a lasting effect when the surge has passed. We need to give some serious consideration to our future plans.
Most companies and their employees across the globe are in survival mode. Employees across industries are dealing with the looming unemployment. I’ve recently read an article in Bloomberg Businessweek Magazine that interviewed a floral business owner; and quote, “I’ve been through 9/11, Hurricane Irene, Hurricane Sandy. I’ve never seen anything like this (COVID-19) before.” As devastating as it is, I couldn’t agree more. In my opinion, considering the net effects that COVID-19 left (and continue to) on the economy, it is worse than the Great Depression.
We all hope that businesses come back to normal. But, the word “normal” is really the ‘new norm’, and businesses will certainly not be ‘back to it’s old normal’. Adjustments are needed most especially in the company’s operational efficiencies.
So what should we expect businesses to look like after this wave regresses? My guess is that businesses will be more resilient and hopefully be more prepared. Each business owner, together with their leaders will have a post-mortem exercise of dissecting what has happened in the last months, how to best position their company in preventing this to happen again. From an owner’s point of view, the cash reserve is the key.
The first step is for companies to increase their cash reserves. Although, for most small-sized companies (1-500 employees), the idea of ‘saving money for the future’ may be unfamiliar. At MCVO Talent Resource Services, this is one area we can help small-sized companies: reduce their labor cost. Labor cost, including taxes and benefits combined, is a large amount of operational expense. Reducing this ‘line item’ in our financial statements is impactful to our company’s profits. Profits increase in cash reserves.
Reducing labor costs is a strategic plan to increase cash. One strategy to reduce labor is to outsource work in the Philippines where labor cost is lower by 70%. MCVO Talent Resource Services offer business process outsourcing (BPO) from the Philippines to the United States, United Kingdom, and other countries.
The second step is to reinvest. When companies have cash reserves, the reserves can be reinvested in essentials to further grow the company. These reserves can only be made possible if expenses are closely monitored. Sr. leaders are held responsible for operational efficiencies, one of which is reducing labor expenses.
The third step is to save cash. When you have a large sum of savings in the bank, it’s easier to make decisions. It relieves the owner’s anxieties when the crisis hits unexpectedly.
During one of my calls with a client who has experienced the financial benefits of outsourcing his business and staff through MCVO, he mentioned, “I wish I would have thought to outsource my back office support in the Philippines sooner. I could have had more savings in the bank.” MCVO can help your company adjust to the new norm of our economy. Outsourcing staff in the Philippines will dramatically reduce your operating expense and improve financial efficiencies.
We are all facing a very different level of financial turmoil today, but there are some lessons to be learned. After all this is behind us, we will adjust to the new norm and are more resilient.[/vc_column_text][/vc_column][/vc_row]
So what should we expect businesses to look like after this wave regresses? My guess is that businesses will be more resilient and hopefully be more prepared. Each business owner, together with their leaders will have a post-mortem exercise of dissecting what has happened in the last months, how to best position their company in preventing this to happen again. From an owner’s point of view, the cash reserve is the key.
The first step is for companies to increase their cash reserves. Although, for most small-sized companies (1-500 employees), the idea of ‘saving money for the future’ may be unfamiliar. At MCVO Talent Resource Services, this is one area we can help small-sized companies: reduce their labor cost. Labor cost, including taxes and benefits combined, is a large amount of operational expense. Reducing this ‘line item’ in our financial statements is impactful to our company’s profits. Profits increase in cash reserves.
Reducing labor costs is a strategic plan to increase cash. One strategy to reduce labor is to outsource work in the Philippines where labor cost is lower by 70%. MCVO Talent Resource Services offer business process outsourcing (BPO) from the Philippines to the United States, United Kingdom, and other countries.
The second step is to reinvest. When companies have cash reserves, the reserves can be reinvested in essentials to further grow the company. These reserves can only be made possible if expenses are closely monitored. Sr. leaders are held responsible for operational efficiencies, one of which is reducing labor expenses.
The third step is to save cash. When you have a large sum of savings in the bank, it’s easier to make decisions. It relieves the owner’s anxieties when the crisis hits unexpectedly.
During one of my calls with a client who has experienced the financial benefits of outsourcing his business and staff through MCVO, he mentioned, “I wish I would have thought to outsource my back office support in the Philippines sooner. I could have had more savings in the bank.” MCVO can help your company adjust to the new norm of our economy. Outsourcing staff in the Philippines will dramatically reduce your operating expense and improve financial efficiencies.
We are all facing a very different level of financial turmoil today, but there are some lessons to be learned. After all this is behind us, we will adjust to the new norm and are more resilient.[/vc_column_text][/vc_column][/vc_row] 
