Source of article: The Business Times

Writer credits: Uma Devi

Covid-19 has globally disrupted many industries. In Singapore, businesses in the retail, F&B and construction sectors have been affected most severely. While there are signs of recovery as countries start to open up their borders with bilateral vaccinated travel lane arrangements, companies which have been mired in debt and mortally crimped by the on going social restrictions may not have enough stamina to see the light at the end of the arduously long tunnel.

Covid-19 is a reminder to all and sundry that the business world is full of uncertainties. One should never be complacent and assume that the flight of enterprise and commerce will always be smooth. You must be prepared for the headwinds and air turbulence.

Businesses should never be over-leveraged. Companies would do well to maintain a consistent prudent sum of cash reserves. Cash is King when the chips are down.

Businesses that cannot turn around but have good brand equities and strong fundamentals such as superior technology and property holdings in prized locations stand in good stead to attract white knights and investors. The Chinese describe the fate of businesses to be similar to fengshui – the winds of change and fortunes revolve and vacillate from time to time with the environment. When things are smooth sailing, plan and prepare for the unexpected so that you stand a better chance of staying afloat when a tidal wave hits you out of the blue.

#business#covid#retail#construction

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My original post on LinkedIn is here.