The Second Wave is Here: What Businesses Should Know During This Time

This is part one of a two-part series about the second wave of COVID-19 in Berlin. In Part II, I talk about a few tips to prepare your office space for the second wave. It will be released next week. 

The second wave is here. As we start to hear that more of our friends, family, and social circles begin to contract the virus, and as more of our immediate surroundings begin to be affected by precautionary measures from the government, the uncertainty of lockdown has, once again, begun to compound our daily lives. Its effects will also be felt in the world of real estate, the office space, and any other important vertical that requires social interaction. 

Despite all of the alarming headlines that have begun to surface day in and day out, I wanted to reorient the discussion on the second wave in a different way. I want to focus on what we do know, not what we don’t know. What we do know is that the first lockdown taught us a bit about how to react decisively to an external situation as drastic as COVID-19. From the first lockdown, most businesses have a necessary understanding of what went right, and what went wrong. We now know enough about how to react that we can get ahead of the second wave. We can take these learnings and prepare ourselves for the second wave.  Right now, I believe businesses need to think about adaptation to the times, communication, and adjusting expectations. I also want to share how we’ve been taking care of our situation, and how we’re preparing for what’s to come.

When COVID-19 first hit Germany, we were—no surprise here—totally shocked. In Setting’s case, that shock translated into customer cancellations and a lot of unfinished deals. One thing we realized was that there was no playbook for what happened—no matter what you did for your business, there was no guarantee that it could work.  But we were very decisive about it. We all sat together and deliberated the best course of action, and started to have conversations about areas that we had to double down on, including team morale, overall communication, and financials.  

That meant taking some really drastic measures, and it really felt like a “get-to-the-war-room” approach. We went through every single deal and sale and began contacting our business clients, customers and partners. We went ahead and made deals with all the people we worked with, all the while tightly controlling who our customers were. That meant working very closely with suppliers, landlords, partners, and tenants; we kept tight communication with every party on our chain with the goal of keeping everyone informed of our situation and, more importantly, understanding theirs.

We also took control of the situation by using the right instruments to understand risk. We had a spreadsheet to see how much capital was at risk across our revenue stream, and how this would impact our business. We also had the right financials in place. The goal was to really get the full picture of our business, our clients, and our deals. We were also listening to our customers and our partners. As a result, by April, May, we started seeing more new contracts signed again. We were positively surprised and shocked. 

Thinking back on it, we learned a few things that have prepared us for the second wave. The obvious one? Communication. We learned how to be empathetic to our customers, landlords, and partners at a critical time. We needed to understand the situation, how their business has been impacted. Communication and dialogue are what make the world go round. 

We also learned that having a good reporting system and structure in understanding your business is key. Really knowing your business numbers allows you to ask yourself: “how far deep can I go?” That gives you foresight. It comes down to really knowing your business numbers, and really understanding your customer, your surroundings, and what you do. 

So what’s gonna happen this time around? I’m not entirely sure. One thing I’ve realized is that Berlin is entangled in bigger forces. There are a lot of external forces that are much larger than us. The government will do anything it can to push money to businesses. But there will certainly still be insolvency.  Given the degree of insolvency that will happen, the market will be flooded with more spaces. But this time around, people can prepare for it. 

Overall, besides communication and using the right tools, it’s important to understand that flexibility has played a bigger role as a result of the uncertainty—and not only in the real estate market. A friend of mine was recently talking about how he spent years building his newsletter agency. COVID came around, and in one moment, his revenue was at zero. He had tens of thousands of emails, and what did he do? He restructured it, and all of a sudden, his business is making money again.

So pivot. Don’t be stubborn about the past or about the way you used to do things. If you constantly think about the good old days, it’s going to be painful.  Be flexible to your environment, and to the new COVID environment. The businesses that will benefit the most at the moment are those that accept that this is the new norm. COVID-19 is the new reality, and if you don’t adapt, you’re going to be disappointed and frustrated. 

And look at it this way: the first lockdown taught you how to react decisively in volatile times. It can only get better for the second wave. One thing is true for us: the Corona crisis is not over. We will stay vigilant, positive, and focussed. 

We’re helping the Berlin office ecosystem before, during, and after Corona times. If you’re looking for an office space or need advice on finding the right space, talk to us.