At this phase, as it is crucial to save the lives of the people in general, it is equally important to take care of the health of the small businesses.
Amid the global pandemic of covid-19, there is a nationwide lockdown in nearly every country of the world. Everyone is observing social distancing to keep themselves safe. This has resulted into a halt or shut down of almost every business, making them economically impractical to continue their operations.
During this period of global crisis what suffer the most are the small businesses. There may be a big question mark on their going concern status – whether they would be able to survive this time of distress or not. At this phase, as it is crucial to save the lives of the people in general, it is equally important to take care of the health of the small businesses. These small businesses are the backbone of the vast Indian Economy.
To overcome this situation of global depression, each small businessman has to take the steering wheel in his own hands and gear towards the upliftment of his business. One has to revisit the business plans and take every possible step cautiously.
Some of the key takeaways which they may consider to bring their businesses back on track may be:
Monitoring the expenses and revenue:
This is the time when the expenses would exceed the revenue. Businesses should make a detailed list of all its variable and fixed costs and analyse each and every situation. Though many of the variable expenses such as advertising, day to day expenses may be avoided for few months, yet fixed costs such as rent may be re- negotiated.
Plan for the coming months:
Though it is uncertain as to when the lockdown would end, it is wiser to plan for the coming months after the lockdown. There goes a general saying ‘Failing to plan is planning to fail. ‘ Indian rupee has also taken a dip as against the US Dollar. Whenever the domestic currency depreciates, it stimulates exports. This can be taken as an opportunity by small businessman who wants to take his business abroad. Also, the existing ones can plan and negotiate to expand the operations.
Taking business online:
Being technologically literate never goes unrewarded. This is the best time to switch over and explore the online opportunities available to every businessman. Taking the businesses online and working from home by creating virtual offices is the need of the hour as the customers also demand uninterrupted services.
Maintain terms with stakeholders:
This time calls for the businessman to maintain cordial terms with every stakeholder including its employees, suppliers and customers. They should have an understanding among themselves that it is the tough time for each and every person in the society. Communicate regularly with your customers and employees to preserve and strengthen the existing relationships.
Keep yourself updated and seek consultation:
Keep yourself updated with all the recent changes taking place and the guidelines and measures issued by the concerned authorities. Take the required action after the consultation with the professional experts - Be it investment, expansion or withdrawal of funds from the business. In addition to it, be ready to take the first mover advantage as per the coming situations.
Sadly, it would take years to bring everything back to normal. What is much needed at this time of crisis is patience, keeping ourselves safe and having faith in the people fighting for us. At the same time, stay ready for the future to take the right move at the right time.
Disclaimer: The views expressed above are my own personal and do not pertain to any legal advice.