By Atul Bhakta, CEO, One World Express

If you are an executive or startup founder who’s been blindsided by COVID-19’s destructive effect, you are not alone. No-one could have predicted the degree to which businesses and consumers would have been rattled by the current pandemic.

As such, governments have been liberal in their aid to companies struggling to pay their staff during these tumultuous times. But within this aid lies the danger of complacency.

If you’re a business that’s completely dependent on the kind of customer traffic that’s now impossible to facilitate during the lockdown, it might seem to make sense to halt all operations and pray normality will return soon. This is a dangerous attitude, however, and one that could lead to the failure of many promising businesses.

For although you can pay your employees the 80% furlough salary and plan out what strategies to implement once the novel coronavirus is contained, many of your competitors are likely already moving to reach new customers in order to keep operations active whilst yours are halted.

One World Express recently commissioned research among over 900 UK businesses to see what strategies they have adopted during the pandemic – here are some of the key findings.

Stifled growth

 Adhering to social distancing measures means some businesses are operating at reduced levels. For others, it means closing down facilities entirely or struggling to cope with diminished supply chains.

This was illustrated in One World Express’s research, as we found that as of April 42% of British businesses had temporarily shut down since lockdown began.

Arguably more important, however, was the 45% of decision-makers who conceded the current pandemic made them realise that their companies were too reliant on a single market. As mentioned, no-one could have predicted COVID-19 so operating in this manner was not inherently wrong. However, it leaves organisations vulnerable to all kinds of economic strife; whether public health-related or not.

Historically, it’s been unlikely that a disease could render entire revenue models defunct, but it is now the reality in which we live. Among the greatest earnings crisis in modern economic history, groups that offered a hospitality service or luxury good absolutely need to shake up their model in order to continue operations.

And what does this ‘shake up’ entail? Reaching out to a new customer base. This can either be accomplished by pivoting your product or service to one which is more in demand in lockdown-Britain or, alternatively, expanding operations into new territories.

A way out

 As previously mentioned, staying docile during these times comes with risks. Positively, of the companies surveyed, 43% said that they had made some changes to their product or services since lockdown began to better serve the current needs of consumers. Almost a quarter (24%) went even further, saying that they had completely pivoted their business model to sell an entirely different market.

But the majority of companies went with the international expansion option; 57% of companies surveyed by One World Express said that they were looking to expand their operations to be able to serve customers across the globe. Given that only 42% of British companies sell their goods abroad presently, this represents a remarkable change in UK business mindsets.

Although the economic damage of COVID-19 may have passed its most destructive point, this shift in mindset among SME decision-makers represents a positive change in the right direction.

But isn’t participating in global trade now tantamount to investing in banking during the global economic crisis? Hasn’t COVID-19 spelt the end of globalisation and frictionless trade as we know it? The answer to both questions, in my opinion, is a resounding no.

Trading our future

The irony of UK businesses reaching out to international markets during a period of unprecedented border restrictions is not lost on me.

The World Trade Organisation has, indeed, commented on how global exports have been diminished – primarily due to the closures of manufacturing facilities, construction sites, and car dealerships worldwide.

One would hope that as industries re-open and social distancing measures are relaxed, supply chains will be sparked back into life. And where your own business matters are concerned, it’s important to draw up a cost-benefit analysis of any given market you’re seeking to expand into.

I, personally, was relieved when the results of One World Express’ research came in. It seems that the majority of British businesses have heeded the above insight and are seeking out new and exciting markets to enter into as the pandemic continues. When normality resumes, I look forward to seeing which companies took the greatest initiative during these stressful times and now, bolstered by a consolidated market, will achieve even greater heights as the years progress.