Since the onset of the Covid-19 pandemic, most entrepreneurs have become more protective of their company’s finances. That is the natural reaction, given the financial issues that might have occurred due to the crisis, there are many calculations to be able to anticipate it, one easy way is with good accounting management. However, in some cases, investing in times of crisis can be the right move. Here are the investment ideas that you can implement during pandemic.
Table of Contents
- Is Now a Good Time to Invest?
- Three Things That You Need to Consider Before Investing
- Investment Ideas That Companies can Choose During the Covid-19 Crisis
Is Now a Good Time to Invest?
According to Forbes, investing during a pandemic is more or less the same as investing at any other time. Whether it is the right time to invest or not, depends on your personal circumstances. Are your finances stable enough? Do you have urgent needs that require you to invest now?
Three Things That You Need to Consider Before Investing
There are at least three important things that you need to consider before making investment decisions:
First of all, you need to analyze the current financial position of your company. If you are going to use an emergency fund, make sure that you don’t have any other unexpected expenses. Otherwise, you should use the emergency fund for other, more urgent needs.
Remember that you can’t always get a return on investment (ROI) quickly. It may take months or even more than a year to get it (depending on the type of investment you choose). So, if your company’s financial performance is bad, consider delaying your investment plans.
You also need to understand your objectives. Choose the type of investment that provides a solution to the problems you are facing right now. For example, investing in an automated system is the right step today, because this tool can help companies to run their business processes automatically even when offices are closed.
Every investment has risks, but at different levels. Most common risks are, for example; fluctuation, inflation, liquidity, currency exchange rates, tax risks, and etc.
Not all business owners can take risks with their money over a certain level. Not everyone is comfortable with the ups and downs of the stock market, for example. To minimize risk, you should choose an investment that can provide immediate benefits or a quick solution to your company’s current issues.
Investment Ideas That Companies can Choose During the Covid-19 Crisis
Here are a few types of investments that provide quick solutions when a crisis hits.
Don’t let people forget your brand during this pandemic. It’s difficult to conduct events to introduce your new product or service to your target audience. However, by participating in webinars hosted by large institutions, for example, you will be able to gain a lot of exposure.
Remote working tools and apps
To facilitate working from home, consider investing in remote work tools such as project management software, Zoom for businesses, Screenshot Monitor, and so on. These tools can help increase employee productivity, communication, and speed of work execution.
If you run a retail business, having an e-commerce site can be the best thing that can help increase your sales during this crisis. According to Criteo, a global advertising company, online sales have seen a drastic increase since the pandemic, particularly in Southeast Asia. This is caused by a shift in buyer behavior that has occurred since social distancing was implemented.
Also read: E-Commerce: Definition, Growth, and Examples
Working from home shouldn’t prevent your employees from growing. In order to keep improving their knowledge and abilities, we suggest that you consider investing in online training with competency management system. Online learning platforms like Udemy provide companies with a variety of useful videos at affordable prices.
In addition, you can also conduct social activities that can help make your company relevant to society. Conducting corporate social responsibility (CSR) events is perhaps not an investment, but it still requires you some cash. The benefits you can gain from this are a positive brand image and public trust in your company (which can be an attraction for your potential investors).
Investing in an ERP system can be an effective solution right now, especially for companies that are planning to switch to long-term remote work. This software allows companies to automate their business processes and carry out their operations online.
ERP software integrates various business processes like financial, purchasing, inventory, sales, staff management, and many more. You can choose a few modules that your company really needs.
For more information about ERP software, feel free to contact our professional team.