43% answered that their company will be able to operate “up to two months” before running out of cash. In addition, they fear interruptions in the payment chains
When pointing out what their company has suffered the most due to the Covid-19 coronavirus, businessmen highlight the drop in their sales, which in turn generates lower turnover and business profitability.
This conclusion follows from a survey carried out on the impact of the coronavirus carried out by the Vistage group, which collects responses from 250 businessmen. Vistage has been in the country since 2000 and internationally is the world’s leading organization of CEOs, senior executives and business owners.
When asked about the factor that is most affecting their company at this time, 40% answered that it is the drop in demand; 28%, which had no negative impact so far; 14%, cessation of activity of any of its clients; 10%, late payment; 4%, difficulty in supplying supplies, and the rest mentioned other problems.
Meanwhile, when asked what they think will be the main difficulties their business will face with the current situation (they are allowed to mark more than one option), the majority say loss of sales or clients and complication for the approval of jobs. This coincides with the answers given to the question “What is the greatest threat to your company at the moment?”, To which 49% answered “losing sales and / or customers.”
Likewise, 31% of those surveyed estimate that it will fall 20%, compared to what was budgeted for 2020 before the coronavirus crisis broke out; 20% said it will decrease 30%; 13% that will go down 40% or more; 23%, which will drop 10%, and 13%, which will not drop at all.
Regarding how long they believe their company will be able to operate before running out of cash, 43% respond “up to two months”; 26%, “up to four months”; 14%, “more than six months”; 11%, “up to six months,” and 6% say it will have no negative impact.
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