Business leaders have been on a journey and in a scramble these last few months protecting their organizations, ensuring the well-being of their employees while endeavoring to secure the continuity of their companies. While large companies have the potential to draw on reserves and extend borrowing, there are many examples of companies that have been unable to pull those levers including well known brands like Hertz and Pier1. Over 100,000 small businesses that don’t have the ability or resources to pivot have already closed.
In order for businesses to effectively plan for the future in these uncertain times, they will need to lead, manage and govern in likely uncharted and in unprecedented ways as we face a new competitive situation. Business leaders will need to reevaluate, move quickly and create plans that address the now and the long-term.
When there are unknowns in the marketplace and no guide-books available for businesses to leverage in how to plan for long term recovery, it’s time to create new strategies that will reposition their businesses for future success. It’s time for companies to invent a new future now.
Now is the time to Invent the Future!
These are just a few companies in no particular order that may be filing for bankruptcy in 2020. J Crew and Neiman Marcus already filing Chapter 11, many other retailers will soon follow!
How the fall of retail which may have happened over a span of 5-10 years is now happening in the span of 5-10 weeks. Bankruptcy can provide protection for restructuring or completely shutting down a business.
Cataclysmic events often spur innovation. That was the case during the 2008 financial crisis, when startups such as ride- and home-sharing companies were able to harness cutting-edge technology to create entirely new business models, and we could see history repeat itself in the current environment.
How stock markets behave will depend on reopening as well as how well a possible second wave can be contained.