The COVID 19 Pandemic has wreaked havoc on the global economy and has impacted all critical business activities like manufacturing, health care, supply chain, logistics, IT-enabled services, and the list goes on. Big businesses are all thinking about the new ways of working by deepening customer connect, cutting cost and leveraging on serendipity delivered by this pandemic ” Work from Home “. Now let’s spare some thought for the small business segment which plays an integral part in contributing towards the growth and development of our economy.
In the current scenario, only a great little has been done to revive the sentiments of small business and it’s high time that this segment gets the help and support that it richly deserves. Some of the key measures by which the lost confidence of small businesses can be restored are Extension of credit, delaying of loan repayments, relaxing tax norms, Government intervention through subsidy, and better liquidity. Also, the small business segment needs to do some soul searching and find ways to remain lean that will help them keep pace with the changing dynamics of the economy. Small businesses need to renegotiate their existing contracts with their suppliers to mitigate the risk of non-performance in their underlying deals. The existing revenue models can be reviewed and the factors that contribute to the spike in costs can be optimized for better profits and bottom line. An end to end review of the value chain can be reassessed for identification and elimination of non-value-added activities. Steps that are manual can be automated for enhanced service delivery and better turnaround time. Small businesses can anticipate and understand customer demand to avoid overstocking of inventory. Mobilize and cross skill its human resources to meet the dynamic demands of its clientele. Small businesses can position themselves as a one-stop-shop service provider by carving a niche for them in the dynamic market place. Regular customer feedback through digital surveys can help to reinvent their business models for upgrading their service standards from time to time. They can engage actively with their banks/financial institutions to extend their credit facilities that would help in planning their Cash Flows effectively.
In the current crisis, small businesses need to work on their core capabilities and leverage on their expertise to deliver quality output that would enable them to grow and mature into long term sustainable business models.