Strategic business shutdown

May 6, 2020 | Commentary, Social

The Covid-19 and the subsequent lockdowns are wreaking havoc on the world’s economies. Watching the struggles that big business is having globally shows how fragile everything is. But, it pales in relation to the impact on small businesses, freelancers, artists, etc.

Work life can be challenging enough with those us within those sectors. Both my wife and I work for ourselves and I grew up in an entrepreneurial household where, belts had to be tightened so regularly, it became the norm. To go from uncertainty with opportunity to complete uncertainty has been daunting, with clients shutting down all projects overnight.

Not every business is going to survive this period. The hope is that the people within will be able to find alternatives or reposition themselves to ensure that life can still be lived. This is not guaranteed but we do need to stop looking backwards and start actively looking forwards with a fresh eye that takes into consideration the harsh realities.

As the, very accurate, cliche goes, ‘don’t let a good crisis go to waste.’

I would not be surprised to see some businesses strategically shutdown operations or business units because Covid-19 serves as the perfect excuse for doing so. These could be operations that they wanted to get rid of but couldn’t without backlash or because of contracts that left little room for manoeuvre. I am no legal expert but I suspect the lockdowns globally can make for interesting negotiations between parties.

In a world of disruption, sometimes we are able to paper over the cracks for extended periods. Covid-19 has made that impossible, And, for that reason, it can now be the reason why some shut things down as opposed to continuously throwing money and resources at it.

It isn’t actually Covid-19.

Just a thought. A tad cynical but a thought, nonetheless.