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Cornell Student Articles on Topical Affairs

The Impact of COVID-19 on Businesses and Their Financial Models

In little over six months, the global COVID-19 pandemic that has torn its way around the globe has impacted life as we all know it in just about every possible way. It has been a challenging time (to say the least) and we are still getting used to the way of the world right now and as we go forward. There is no getting around the fact that the virus has transformed life in many ways, and not many of them have been overly positive( again, to say the least). The economies around the globe have been struggling with the weight of the virus, trying to readjust and figure out how to find their footing in a world that becomes more and more uncertain every other day amid these challenging times. Think of the impact that the virus has had – and continues to have – on the way that businesses function and thrive, for instance. This impact has been tremendous and unforgiving. In some instances, it has proven itself to be devastating.

The entire planet has been suffering through the ongoing effects of the virus and while we are not on the other side of this virus by any means, we are beginning to inch our way towards being there. Of course, there is going to be a massive work in progress that we are going to have to get used to and tailor readjustments towards – particularly in the way of the economies around the globe and the businesses that have unfortunately been negatively impacted by the shifting landscape of the said current unstable economies. The impact on businesses and their financial models has been nothing short of brutal (to say the least). We have seen many businesses struggle financially during this time. Some of them have been forced into closing. The financial impact on the business landscape that spans the globe has been a testament to the fact that no matter how solid a business seems, a global epidemic can turn even the best of them into a shadow of its former self.

The business templates of companies around the globe are having to evolve and realign, a process that is very much haphazard at this point. The financial aspect of a business is without a doubt one of the most important aspects of a business there is. When its stability is pulled into question, then the very future of that business is also pulled into question. Right now, all around the globe, the businesses that are surviving and even thriving are the very same businesses that not only adequately prepared their financial models well before the fact, but that were at the very least partially ready to adapt to a world that was more driven towards a digital inclination. Without the financial aspect of a business being stable, it can be a challenge for that business to remain in even the vaguest of strong positions.

Some industries have been impacted heavier and more often than others, however the point is always the same. That point is the underlying realization that we have been seeing quite a lot of destruction in the business landscape that spans the globe right now. If the last six months have taught us anything, it is that nothing is certain. For businesses that hope to survive and thrive past this virus and well into the future and beyond, the two instrumental keys to making this even remotely possible are adaptability and financial prowess. It is challenging to know just how this is going to turn out in the coming months. We have never had to navigate our way through an international COVID-19 pandemic before. However, if only one thing is certain it is that the coming months are going to be quite illuminating (to say the least).

COVID-19 has shaken the world as we know it right down to its very foundations. Over the course of the last six months, we have seen the tremendously powerful (and overly negative) impact that the virus has had – and continues to have – on just about every aspect of life as we know it. Including, of course, businesses and their financial models. While the financial impact of many businesses around the globe has been brutal, it is also a testament to the fact that this is an extremely unique state of the world – and there is a lot to be said about the fact that for many businesses around the globe, this is going to be a process of trial and error to establish and understand that this will take time to heal from. Businesses that are maintaining their position during these times are rising to assist struggling businesses. There is a whole lot more where all this came from. The best is yet to come.

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