Journey through Covid-19

27 April 2020 Businesses Not Earning Revenues during Covid-19 Shut-down For a business to survive, it will need to earn revenue from its business operations and manage business costs so as to make a profit. Another aspect for a business to survive is managing cash flow so that business can pay is suppliers, workers and other creditors when debts are due for payment.

During the Circuit Breaker period, that was extended for another month to end 1 June 2020, non-essential businesses are compelled to close their work places in order to combat Covid-19 pandemic. This has resulted in zero sales for most businesses when workers and employers are to stay at homes and not to meet customers or to go to worksites.

Customer sales are the life-blood of any business. Without revenue, business costs keep piling up waiting to be paid.

To reduce the impact on businesses during this Circuit Breaker Period, the government has put in place 3 areas of support: Cash Flow, Cost and Credit. All these relate to cost of running a business. It does not address the revenue part of the business.

The schemes for cutting costs of businesses will not be adequate to cover all costs.

Businesses share in the cost of running a business besides the government support. With near zero revenue, it is challenging to keep a business afloat. That is where governmentsupported financing schemes come into play to tide over the businesses during this period.

It is to be acknowledged that businesses suffer during this Covid-19 pandemic, some businesses more than others. No one wants this pandemic to happen. We have to do our best to beat this coronavirus. The sooner this is over, the sooner for businesses can start operating again and earning revenues. We all have to do our part.