Small and medium-sized businesses only tend to with a few months of cash flow at most. When something unfortunate as a global pandemic takes place, these businesses are hit the hardest. There may be no absolute answer to how these businesses can survive the pandemic. Regardless here are 10 ways in which small and medium-sized businesses survive in this pandemic.
- Altering the age-old business model
For Small or medium enterprises, the first step to adapt to this new pandemic and the post-pandemic era is to change their business model from consumer-based to a canvas model. In this, the owners need to spot their costumer and their requirements at the same time plan for the distribution of their product or service. This model as the old model allows us to keep track of prices and adjust accordingly.
- Digital branding
In today’s market and competition, the only way to survive is to reach every customer as a product or a service. And evolving with evolving technology has never been a problem for large companies. Small companies or medium-sized companies with limited budgets and resources with a low margin of profit can’t adapt at the same pace. But with pandemic and widespread lockdown, the only way to survive is to reach the customers through digital marketing.
- Government support
Even though this crisis in India and other countries has halted the market. Governments all around the world are keen to support these small businesses and subsidize their buying, this is done for one prime reason of keeping the unemployment down and at the same time keep the cash flow in the country. With people locked in their houses the only way to increase the spending is to incentivize buying. In countries like India where the trust lies with our local businesses rather than bigger corporations the only way to get the economy going is by helping out these small and medium businesses. And this money does not only keep these businesses afloat but also attracts spending from the general population.
- Loans and other solutions
With lack of usual business in companies with a narrow margin of profit which are mainly these SMEs should look for a newer way to finance their business. One of the main sources is a loan. Banks are the main loan provider in our country and with the economy hitting hard they have also suffered losses, and that they have also tried to incentivize companies to take out loans, by giving them smaller interests and longer duration.
The government has also announced some low-interest rate loans and other incentives on the loans to encourage people to reach out for loans.
- Cost structure
Building a business model around the availability of resources, best pricing available, and maximum reach. At this time, you can’t compromise on your quality but you have to get the best price for the job to be done. And for this, you need to reach out to people for help and negotiate a model that works for both the business and the allies.
- Keep up with the guidelines
WHO, CDC, and government guidelines easing or adding stricter protocols to the lockdown also has a major impact on the market, and keeping up them and planning accordingly can do wonders to your sales.
- Training your staff.
Employers need to train and help they’re to adapt to the new working conditions this can either working on zoom, interaction with clients, or online handling of the business. Also, cross-training might your employees work multiple jobs in the absence of the ability to employ too much manpower.
- Reduce cash outflow
For any SME the main expense is the rent and secondly, the employees pay. With government ease on rent along with negotiation from your landlord, you can manage to reduce your rent for the time being. And outsourcing your work to freelancers and downsizing your business can be a way to reduce cash outflow.
- Reach out to your customer
A business to be successful in this time has to continuously be in contact with its customers to keep up with their needs and plan accordingly. Because in pandemic the needs of the general public seem to be very different from pre covid times.
- To take care of yourself and your staff
Understand that the world is going through a pandemic and things are hard; both mentally and physically. Make sure to prioritize your health and safety and check in on yourself and your staff regularly.
