29 Apr 2020
Top Ways to Increase the Survival Rate of the MSMEs in the COVID-19 Situation
The pandemic of COVID-19 has affected the entire economy of the globe. While all the businesses around the globe are facing different challenges, the small and medium-sized businesses are affected the most. The months’ long lockdowns have posed a threat to their survival. However, there are certain ways that can possibly help these MSMEs to cope up with the COVID-19 situation. Here is a list of the best ways that the MSMEs can adopt.
1. List the Possible Impacts
Creating a list of the possible impacts that COVID-19 can have on the finance of your business proves to be helpful. Knowing the significant impacts helps in developing appropriate mitigation strategies to cope up with the situation. While making a list, you can consider the areas like sales, finance, supply chain, and the availability of staff. Quantifying the impacts can further help in establishing stronger mitigation strategies.
2. Focus on Your Cash flow
While the core aim of every business is more profits, now is the time to focus more on the cash flows. Even though collecting receivables can be challenging, you need to focus on that. You can also determine if your business can offer any additional services to your customers that prove to be helpful in this situation. You can also talk to your suppliers as well as vendors and check whether they can extend the payment terms. Also, talk to your bankers and evaluate the possibility of additional financing in the situation.
Also read: Why Digital Transformation is Important for SMEs Post Covid19?
3. Prepare Financial Plan
In order to survive in the COVID-19 situation, the MSMEs need to have a fresh financial plan in place. Your old financial plan is no longer going to work. After gaining better insights about your income as well as expenses, you can prepare a workable financial plan. You can discuss the plan with the important stakeholders and partners to increase its effectiveness. It will also help you find out how to resume your business when the situation gets better.
4. Increase Your Online Presence
In lockdown situations, where people cannot move out of their houses and reach your physical stores, having an online presence is essential. If your business doesn’t have a website yet, developing one is the need of the hour. Through your website, you can connect with your target customers and meet all their needs. However, if you already have a traditional website, redesigning your current website can work wonders for your small business.
5. Increase in Online Sales
Now is the right time to boost your online sales. In order to survive in the competitive market, even in a crucial situation, the MSMEs need to start selling their product and services through the online platform. You can investigate the various online platforms and select the best one that can meet the needs of your business. Providing effective digital solutions and services can help in growing your customer base even in the COVID-19 situation.
Also read: Boost ROI of Your Business with Enterprise Mobility Solutions
6. Engage with your Customers
Irrespective of what challenges your business is going through, keeping them engaged is important. In fact, you need to engage your customer with your brand even more in order to survive in a critical situation. You can connect with your target customers through different social media channels. With the use of social media and emails, you can continue interacting and engaging your customers. Moreover, activities like games, quizzes, and others can help in increasing the customer engagement rate even more.
7. Make the Most of The Financial Programs
In order to provide support and assistance to the MSMEs, Governments around the globe are offering several financial programs. Make sure to be well updated about all such programs to ensure maximum benefit for your business. Find out the eligibility of the programs that can help you to avail the benefits as per your industry. All these programs can help the small as well as medium-sized business in operating successfully without any financial challenges.
8. Keep Customers Informed
In COVID-19 situations, there are high chances that there might be some significant changes in your regular businesses. In this case, you need to keep your customers informed about the same. Information about the changes in working hours, delay in delivery of service, or any other important information needs to be updated on the websites or social media accounts. You can also contact your customers via the emails. It helps your customers to stay in touch with you and easily reach you in times of need.
Also read: Benefits of Following a MVP Approach While Developing Business
9. Offer Discounts
Providing discounts can help in creating a win-win situation for you and your customers both. Many of your customers may be suffering from personal financial problems. Offering them some discounts in such a situation can enhance their loyalty towards your brand. You can look out for some ways in which you can offer a discount without hampering your current business model.
These are some of the extracted ways that help MSMEs survive in the hard times of COVI-19. With these helpful ways, you can stay positive about the growth of your business.