Serial investor and co-founder of multiple businesses, Victor Asemota, yesterday shared some insights on what to expect as individuals and businesses during the pandemic period and in its aftereffects.
On the surface, it looks as if work has stopped in major areas of the economy, but it has not. But behind the surface, some people are thriving and working harder than ever. This, according to Asemota, is the reason why having more than one area of work is important.
“Work has not really stopped. It has actually increased. I … now understand why diversity of activity is more important than doing one thing as we have always been told. It is the plan B And C thriving now”.
The economic impact of the pandemic is putting the focus more on helping the less-privileged and encouraging philanthropic activities. However, Asemota is of the viewpoint that the longer the pandemic plays out, the more every individual will become less-privileged.
Therefore, he brought a new approach to helping, saying that it is better to give the less-privileged a job that pays them and also pays you back, as an investment.
This is especially important, because of the need to keep money flowing in as we give some part of it out. Working from home is a major part of what keeps the money flowing in. However, that also comes at its own costs. This implies that money kept in the bank will only depreciate as we dip into it to meet rising costs.
This further reinforces the need to have several channels up and running to ensure the inflow of money. According to Victor Asemota, his second and third plans are currently working for him, in the face of present-day economic realities.
Will the government be a financial balm for the people?
The answer is no.
Governments need taxes to run and taxes majorly come from businesses majority of whom have shutdown now to halt the spread of COVID-19. According to Asemota, this might eventually put the government’s attention more on digital services, causing an increase in the taxes paid by operators in the sector.
An increase in taxes on digital service providers will lead to a higher cost on the consumers. This will negatively impact on the consumers spending ability, and ultimately decrease the quality of life of the majority.
Sharing on sensible practices that could be solutions in the eventuality, Victor Asemota advised people to become deliberate about growing their food. Those who do have a better chance of mitigating the effects of the coming inflation.
Another way to prepare ahead is to invest in businesses with huge prospects despite the season instead of stashing away funds in bank accounts.
“This is the time to invest in the right things and not hoard cash. This is the time to buy up smaller businesses and help them become more efficient”, he said.
Perhaps one of the most important things that working from home has shown, according to Asemota, is that decentralized businesses are more resilient than large centralized ones.
This is because decentralized ones are capable of functioning in sub-units and tap into resources closer to them for better productivity, as opposed to having everyone come to a general source for everything pertaining to the business.
The present economic realities make it necessary to have financial backup and investments in the right places because each day that passes is one that sucks up more resources while bringing in practically zero.