Bounce back and win the Coronavirus battle!
While everyone across the world is battling with the impact of Coronavirus, there are first-time challenges faced by SMEs. Small businesses are making all efforts to keep going and bounce back from the Coronavirus downturn. We tell you 5 things that SMEs are undertaking or can implement to bounce back during this difficult phase:
1. Remote Working and Monitoring
Adapting to crisis is the best way to bounce back. Remote monitoring of work will help SMEs have a control over how the business is functioning and what is the productivity. Use online tools for remote functioning of the business such as:
- Zoom and Google hangout for video conferencing
- Google spreadsheets so that everyone can access data and important information
- Create a Google calendar to mark events, milestones that need to be achieved
- Use Whatsapp groups for updates and sharing daily progress reports
2. Looking at Diversified Business Models
- Retailers that have revenue generated through a variety of channels or a various of geographic locations will be able to handle the Coronavirus downturn
- Look at how the online model can be incorporated in your business. This can bring about a monumental change and shift in your company and could be a great bounce back strategy
- Check what are the e-commerce solutions and resources available to you, leverage technology
- Make a list of what products can sell online. Digital platform cannot be a savior for all your products and services.
3. Keeping Cash Flow Intact
Cash flow is a key factor for small business owners, especially during a time when revenues are significantly impacted due to store closures, reduced store hours, and unfilled demand for some products. Few ways to look at maintaining the cash flow and avoiding layoffs are:
- Borrow from alternate sources or a known line of credit- This will help if additional cash is needed for working capital requirements
- Collect payments that are due to
- Cut on all non-essential expenses that can be stalled for a few months
- Negotiate prices with vendors & partners
- Create online payment options for customers
- Slow your payment cycle as well- Look at how many days is your payment cycle with a vendor and take the decision accordingly
There is a World Bank report which talks about the total impact of Coronavirus on world economies. As far as India is concerned, it should be in the region of 0.4 percent of GDP.
4. Checking regular updates from the Government
- The Government is taking various steps to provide a stimulus to SMEs, so that companies and small businesses can sail through this economic crisis
- Regularly keep an eye on what the Government is announcing on SME loans, MSME schemes, payment terms etc.
- This will help act as a relief for many businesses during Coronavirus outbreak
5. Be Positive and bounce back whenever you feel like quitting
It is natural for SMEs to think that they won’t be able to survive and shutting down would be the best option, but try and give it a chance by thinking a little differently
- Make a routine- Plan how are you going to take updates, business meetings, sales analysis and also keep some time for yourself to relax
- Take the help of a mentor- It is very important that if you get stuck somewhere you can ask for advice and take the right decision
- Acknowledge the hard work put in by your employees- This will motivate them to work harder and help the company to bounce back during the coronavirus outbreak
As our Prime Minster Shri Narendra Modi said that we are all in it together and together we have to fight the crisis. Hence, SMEs should not think of quitting and find ways to bounce back during this outbreak.