2020 is destined to be an extraordinary year. Forest fires in Australia, locust plagues in East Africa, volcanic eruptions in the Philippines, and the new coronavirus epidemic make the world seem to be in a state of emergency. At the moment of the epidemic, the world's economic losses are even harder to estimate. Many small and medium-sized enterprises are facing bankruptcy, which also has a big impact on the stage lighting and audio equipment rental industry!
Stage lighting and sound rental equipment includes stage, stage truss, lighting, sound, LED screen, stage special effects and so on. Since the emergence of the stage lighting and audio equipment leasing industry, it has been widely used in conferences, commercial performances, corporate evenings, annual meetings and other occasions, which also shows that leasing is more advantageous than owning a certain property. For the lessee, it is conducive to modifying the financial statements, and the rent is treated as an operating expense, avoiding a large increase in debt for the purchase of equipment, and effectively preventing the asset-liability ratio from rising. The lessor has formal construction qualifications and professional technical personnel, just to make up for the lessee's lack of technology in the use of equipment.
The epidemic has caused all offline activities to be cancelled. This is indeed unfortunate news, but there will be a short 'recovery period' after the epidemic. The preliminary assessment of this year's industry is not very good. Many upstream and downstream companies cannot protect themselves. Overall, the market this year Not too good.
How to get through difficult times? our suggestion:
1. Ensure sufficient cash flow, cash flow is king
2. Increase revenue and reduce expenditure, save unnecessary expenses
3. Maintain communication with customers at any time during the epidemic
4. The maintenance of the company's core personnel, avoiding resignation, and re-recruiting new employees will cost more
5. Get ready for the warm spring