Before You Enter Your Zoom Boardroom: Arm Yourself with a Plan to Exit the COVID-19 Crisis on Top
By Todd Ablowitz, Co-Founder & Co-CEO, Infinicept
For many of us, it can be difficult to see past the next few weeks as the world enters more deeply into the COVID-19 outbreak. Businesses are seeking creative ways to adapt to this evolving environment, reacting to changing consumer behaviors and working to keep revenue streams flowing.
But it’s important to remember that the crisis will end. While we don’t yet know when that will be, now is the time to prepare to exit the crisis well-positioned for greater success. Company boards and shareholders expect management to have a plan to not only get through the crisis, but to come out of it stronger in the long run.
In particular, software companies that have been focused on aggressive growth need to know how they plan to adjust their businesses for a more sustainable future. The sudden, unexpected downturn resulting from COVID-19 has brought a different priority into clear focus for these providers: the need to maximize revenue.
Vertically oriented software companies have invested heavily in building and distributing a compelling product that meets the needs of a specific industry or type of business. Many of those companies have an opportunity to retain a larger share of the payments revenue that product generates – by owning your payments revenue, rather than continuing to turn it over to a third party.
For software companies that have a payment component to their offering, payment processing fees represent another revenue stream attached to that software. Bringing the payment capabilities offered through your software in-house allows you to hold on to more of your own revenue from your product and each customer you’ve worked hard to serve and retain.
One likely outcome of the COVID-19 crisis is that we will all use more electronic payments, more contactless payments, and less cash. With physical distancing currently the norm, the ability to accept payments electronically is even more in demand. Software companies that serve nonprofits and religious groups, for example, are rapidly expanding capabilities to make sure these organizations can accept donations and raise funds online as in-person donations drop off.
As consumers become accustomed to paying for goods and services digitally, even in sectors that had previously lagged behind, they’re unlikely to go back. This is not new – the crisis is only hastening a shift to electronic payments that was already occurring. Software companies are already increasingly recognizing the important role payments play in their customers’ businesses.
Now is the time to go beyond that understanding to realizing the revenue opportunity it creates. While taking on payments may not be the right strategy for every business, for many, it represents a path to taking their software to the next level.
For companies interested in taking charge of the payment process, Infinicept offers tools and expertise to help you get to market quickly.