Hong Kong is Facing Further Uncertainty
Consecutive days of increasing local Covid-19 cases has signalled the start of the third-wave. The unknown origins of an increasing number of cases have people worrying again. The coming of a third-wave after the city has seemingly gotten control over the situation is leading people to question whether Covid-19 is here to stay.
The return of the virus has come at a terrible time for the city, as the worsening US/China relations have continued through the signing of the Hong Kong Autonomy Act. Losing its special trade status could mean potentially opening Hong Kong to the same tariffs placed on China during the trade war. The whirlwind of back and forth arguments between the two superpowers has Hong Kong caught right in the centre of the storm.
Why Business Leaders Should Act Now
Many businesses were already feeling the strain from the last social distancing measures. With the enforcement of the new social distancing restrictions on July 15th, businesses, especially in catering and retail, are questioning if they can survive further blows.
As such, to stay in business, company leaders will need to act now and evolve their business to meet the new demands of the market as it develops.
Aside from addressing new demands, business leaders also need to consider optimising their operations by cutting down on unnecessary costs to better prepare for the long run.
Evolving Your Business to Meet Market Demands
Diversifying Your Business
Despite the grim outlook painted by the media, many businesses are in fact thriving in the face of Covid-19. According to CNN, grocery stores around the world are facing shortages as panicked buyers stock up on essentials. E-commerce and home entertainment platforms are also seeing a surge in demand indicating a shift in market consumption.
All this is to say, demands have not dried up, but migrated to different avenues. As a business leader, it’ll be important to recognise the new opportunities and channels of promotion in order to meet the clients where they’re at.
Diversifying your business approach will be vital for increasing revenues. This will include adopting new methods of sales and exploring new potential markets.
Cut Down on Overhead Expenses
Reducing overheads will also be essential to stopping expenses from draining your business. This is particularly important during times of economic downturn. Whether your business is profitable or not at that moment of time, overhead expenses will still need to be paid. Typical overhead costs can include rent, utilities, administrative tasks, accounting, etc.
Identifying areas in which the business can cut-costs and run more efficiently will prove to be essential in such times of uncertainty. Here are some effective ways to reduce operational costs:
- Outsourcing non-essential business operations to professional vendors
- Automate repetitive tasks
- Improving your technology infrastructure
Success by Outsourcing Non-Essential Areas of Your Business
During the pandemic many successful companies demonstrated their skills in adapting to the changing working conditions, this included streamlining operations. By partnering with outsourcing companies, upgrading their digital capabilities, and automating areas vulnerable to human errors, businesses can better focus on re-aligning their strategy and boost efficiency. Streamlining your business operations by simply partnering with professional vendors can also help cut costs and improve productivity.
Payroll, for example, is one of the key operations many successful businesses decide to outsource. Its tedious nature of payroll means it can be a handful for businesses handling payroll in-house. Instead of dedicating a team to meticulously handle payroll, leaders usually find it more rewarding to have this operation outsourced so they can have more hands-on deck.
For more on this, check out our article “If Your Business Outsources Only One Thing It Should be Payroll: Here’s Why”. If you’re interested to see examples of businesses that have successfully streamlined their operations though outsourcing, check out our Client Success Stories.
To help organisations better adapt their operations, the Hong Kong government recently launched the Distance Business Programme (D-Biz) funding programme aimed at helping local businesses improve their tech infrastructure. Enterprises can receive up to HK$300,000 to implement IT solutions with HR systems being included in the coverage listing. Take advantage of these schemes to evolve your business operations today, get in touch with one of our representatives for more information on how to do this.
3 Key Takeaways
Act Now to Strengthen Your Business’ Resilience
The return of Covid-19 in Hong Kong should be a sign for businesses to strengthen their resilience to crises. With coronavirus staying indefinitely, leaders must act now if they want to survive any future unprecedented situations.
Diversify Your Revenue Streams
Diversification is key for reducing vulnerability during change. Putting all your eggs in one basket can be a risky move considering all the uncertainties. Offer more services to attract new customers and retain loyal ones. Equip your company with the necessary income to deal with economic downturns.
Reduce Business Overheads
Reduce business overheads by partnering with a professional outsourcing company and by improving your technology infrastructure. Streamline areas of your operations with cost-effective solutions and watch your business thrive through any situation!
- Coronavirus: Extended Care to Staff and Clients
- Redundancy Laws in Hong Kong – What Employers Need to Know
- What is Employer Branding at a Time of Economic Downturn?
- When Will HK Employers Receive Their Subsidy Under the Employment Support Scheme?
- 2020 Legislation Updates & Stimulus Measures Comparison Chart
Links International is an industry leader in innovative HR outsourcing with services such as payroll outsourcing, visa application, Employer of Record (EOR), outplacement, recruitment and more! Contact us for more information on how we can help leverage your HR function.