5 Ways For Small Businesses Can Survive The COVID-19 Crisis

The extended national lockdown has meant that businesses across all sectors have taken a hit. The impact is more severe for small businesses that have seen their business dry up and their cash flows disrupted. While the going will no doubt be tough, there are ways a small business can survive the crisis and be in a position to bounce back when things get better. 

Take Immediate Action

In such a scenario it is better to be proactive rather than be reactive. Decisions need to be taken and taken very fast. Look at ways to cut down on costs as much as possible. You might have to put on hold any expansion plans and try to wait it out till things get better. Even as you should help others as much as you can, you can also turn to others for help and support. 

Focus On Cashflows 

Now is the time to focus on cashflows and not on profits. While the focus should be on collecting receivables, that would also be under pressure now. While your business might to be functioning as usual now, you can offer your customers with gift cards and vouchers with no expiry date and earn some cash.  Figure out if you can offer some essential services to your customers, even if it is not the main line of your business. 

Now is also the time to talk to your existing to your vendors and suppliers to see whether you can extend your payment term or get a longer grace period. If you have a lease, you can see if the landlord offers you a similar benefit or a discount on rent.

Engage Your Customers 

While business might not be going on as normal, now is the time to engage more with your customer through social media channels. The idea is to stay in their minds so that your business picks up when the going gets good. Reach out to your customers through email and social media and engage them whether it is through quizzes, games or any such activity. Remember that customer is king and you need to need to keep the communication going even if it is leading to any sales during this period. 

Check For Any Available Financial Program

Governments all over the world are putting into place financial assistance plans for small businesses and India is no different. Find out if you are eligible for any such assistance whether it is any financial assistance or easier terms in terms of business loans. Tap into all the help at hand to stay afloat. 

Make A Financial Plan 

The financial plan you had in place is not likely to work now and adjustments need to be made. Take a closer look at your income and your expenses. See if there are any expenses which can be delayed or put on hold. Discuss your plans with your partners and stakeholders so that you are on the same page. Have a plan in place of how you can get back to business as soon as the crisis is over.

Remember that you are not alone it and however bad the scenario may be right now, things will get better. And as the cliché goes, there will always be light at the end of a tunnel.