#SME&U

21 Apr 2020

Tool Kit for SMEs during COVID-19

by RAKBANK
tool-kit-for-smes-during-covid-19

These are challenging times for companies across the globe, especially those with smaller operating models such as Micro, Small and Medium sized Businesses.

 

 

As a SME owner there are few measures you can adopt to operate your business more efficiently in such uncertain times. These suggestions may not be sufficient to avert the crisis but they would definitely be useful to help you navigate in a better way.



1. Taking Charge & Control
As a leader of your business and your workforce, take charge and control of all the aspects of your business. Act with urgency and be ready for iterative decisions as the situation evolves. While dealing with your employees, be clear, transparent and compassionate in your communication and actions.



 

2. Time for Plan B
Activate your business continuity plan or plan B while ensuring health and safety of your workforce and continuing your business operations within the authorized guidelines. Engage with your key customers and suppliers to find a common ground that best suits your business needs.

 


 

3. Use Virtual Communication
Maintaining social distancing is important, so switch to virtual conferencing or digital communication tools such as CISCO Webex and Microsoft Teams. It's a great way to stay connected with Employees, Buyers, Suppliers, Bankers, etc., while looking after your safety and that of others.

 



4. Review & Adopt Digital Solutions

- Review your business strategy in order to build a digital ecosystem for your business. Integrate your business with available digital solutions, if not fully then some to begin with like sales, services, banking, or operations.
 

- Adopt an e-commerce model for your business and redeploy "feet on street" sales for key customer segments.
 

- Consider digital solutions that offer smart invoicing or e-commerce solutions integrated with your accounting platform. It will help your manage your receivables effectively, especially if you are in the retail and wholesale business.


 

 

5. Maintain Liquidity 

- Revise your business cash-flows for the next 12 months considering the economic impact of COVID-19 on trade in local as well as international markets.
 

- Conserve your cash and maintain liquidity for all your essential services. Look for options that are cost effective and create value to your business while cutting down on unnecessary expenses or holding on to your expansion plans.
 

- Approach your bank or suppliers for possible solutions they can offer to meet and improve the liquidity position of your business.
 

- Reach out to your bank to request for a repayment holiday on loan / finance or to restructure a short term finance if your business needs a liquidity boost.
 

- Review your existing payables and have a discussion with your suppliers to restructure them as per your Cash-flow.




 6. Revisit Existing Contracts

For businesses in the service industry, it would be wise to revisit all the existing contracts to identify terms with potential impact and be prudent when signing new contracts by carefully reviewing all legal terms.




Cash remains king and you have to manage your liquidity to survive in such challenging times. All your stakeholders including suppliers, customers, bankers, employees, shareholders, are all in the same boat. So put your best foot forward to engage with them as early as possible.



Lastly, keep your rebound plan ready to bounce back when the situation improves, which eventually will because this too shall pass. 


Tags :




Tool Kit for SMEs during COVID-19

21 Apr 2020

tool-kit-for-smes-during-covid-19

Tags :

These are challenging times for companies across the globe, especially those with smaller operating models such as Micro, Small and Medium sized Businesses.

 

 

As a SME owner there are few measures you can adopt to operate your business more efficiently in such uncertain times. These suggestions may not be sufficient to avert the crisis but they would definitely be useful to help you navigate in a better way.



1. Taking Charge & Control
As a leader of your business and your workforce, take charge and control of all the aspects of your business. Act with urgency and be ready for iterative decisions as the situation evolves. While dealing with your employees, be clear, transparent and compassionate in your communication and actions.



 

2. Time for Plan B
Activate your business continuity plan or plan B while ensuring health and safety of your workforce and continuing your business operations within the authorized guidelines. Engage with your key customers and suppliers to find a common ground that best suits your business needs.

 


 

3. Use Virtual Communication
Maintaining social distancing is important, so switch to virtual conferencing or digital communication tools such as CISCO Webex and Microsoft Teams. It's a great way to stay connected with Employees, Buyers, Suppliers, Bankers, etc., while looking after your safety and that of others.

 



4. Review & Adopt Digital Solutions

- Review your business strategy in order to build a digital ecosystem for your business. Integrate your business with available digital solutions, if not fully then some to begin with like sales, services, banking, or operations.
 

- Adopt an e-commerce model for your business and redeploy "feet on street" sales for key customer segments.
 

- Consider digital solutions that offer smart invoicing or e-commerce solutions integrated with your accounting platform. It will help your manage your receivables effectively, especially if you are in the retail and wholesale business.


 

 

5. Maintain Liquidity 

- Revise your business cash-flows for the next 12 months considering the economic impact of COVID-19 on trade in local as well as international markets.
 

- Conserve your cash and maintain liquidity for all your essential services. Look for options that are cost effective and create value to your business while cutting down on unnecessary expenses or holding on to your expansion plans.
 

- Approach your bank or suppliers for possible solutions they can offer to meet and improve the liquidity position of your business.
 

- Reach out to your bank to request for a repayment holiday on loan / finance or to restructure a short term finance if your business needs a liquidity boost.
 

- Review your existing payables and have a discussion with your suppliers to restructure them as per your Cash-flow.




 6. Revisit Existing Contracts

For businesses in the service industry, it would be wise to revisit all the existing contracts to identify terms with potential impact and be prudent when signing new contracts by carefully reviewing all legal terms.




Cash remains king and you have to manage your liquidity to survive in such challenging times. All your stakeholders including suppliers, customers, bankers, employees, shareholders, are all in the same boat. So put your best foot forward to engage with them as early as possible.



Lastly, keep your rebound plan ready to bounce back when the situation improves, which eventually will because this too shall pass.