If there’s one thing we learned from 2020 and COVID19 it’s that many companies were under-capitalized, had no contingency plans, and had weak remote working technologies. For small businesses that depended on vendors for services like Web development and digital marketing, many were left hanging.
Overhead Expenses Drag on Service-based Businesses in 2020 and Beyond
Real companies have lots of expenses like office space, employees, and equipment. Service-based companies often depend on large clients to keep them in business. When those large clients leave, huge revenue holes form and many businesses can’t cope with the loss. They reduce staff in a panic and service to their remaining clients is reduced.
High overhead costs during good times forces business owners to constantly look for new clients – reducing service to existing clients.
COVID19 forced the tide to go out and we all saw who was swimming naked. We also saw companies that didn’t embrace technology before the pandemic were at a massive disadvantage. It makes you wonder… if companies were ignoring the trends in the past, will they ignore them in the future?
There is no replacement for visionary leadership, modesty in business budgeting, and having the ability to service clients without shortcuts.
Should the COVID19 Rebound Matter?
Stimulus money, vaccines, relaxing of restrictions – none of it matters for cutting-edge service companies. True preparation means you are ready for the next unseen event. Perhaps we will have some in series. For example, what if there were other, more deadly strains of a COVID virus? Or an entirely different kind of virus like Ebola? Everyone alive during 9/11 remembers the impact of real terrorism. And those old enough to remember World War II have nothing but terrible memories of the difficulties they encountered. We just need to keep in perspective that a virus with a 99% survival rate crippled the world’s largest economy. Any additional negative events would have catastrophic consequences. For example, we could have 3 simultaneous pandemics, war in the South China Sea, civil war taking place in the capitol area, food shortages, and terrorism all taking place at the same time. Would your company continue to operate? Would the vendors you depend on continue to operate?
The government planned a lot of tricks to keep bad businesses afloat. The question is, do you want your company to choose a service provider that gets by on tricks? We don’t and we think you deserve better.
At ETHOS DIA we have exceptionally low overhead costs that enable us to focus on our clients and not pressure them with upsells, or shortchange them by constantly looking for new business. Our embrace of remote working technologies and multiple flex-space office locations enable us to meet with clients in person and work during natural disasters. If we sound like the company you would like to outsource your Web, WordPress, digital marketing and strategy – don’t hesitate – contact us now. Let our ethos inspire you.