Crises are difficult and complex times that force small and medium-sized enterprises to get the best out of them or sink into the attempt. That’s why it’s always important to have SME guide on surviving hard times.
Below are 5 strategies that you can employ in times of crisis. Continue reading!
- Analyse receivables and manage them
All companies have accounts receivable. Some have more than others, but it is important to do a full analysis to know where you should press and how you should charge that much-needed amount.
Identify in analysis which accounts are the largest receivables, as well as the ones that are easier to collect; start with them for liquidity management as soon as possible.
In times of crisis, courts tend to significantly increase the number of debt collection claims, so you must first exhaust the bargaining process.Providing employees, a safe working environmentduring COVID must be implemented to the right extent for each type of company.
- Analyse your expenses and adjust them
Take a closer look at how much you spend and what, then determine which ones are indispensable and which are not.
Those who are not indispensable, you must pause them or set them aside; those who are indispensable, look for a way to spend less without affecting the result that that spending generated for you.
Use of technological tools is another tip for SME guide on surviving hard times. Make sure that the tool presents you with the information in real time, in an orderly and detailed way. In this way, the analysis of expenses will be deep and clear, giving you the possibility to make the most relevant adjustments according to the type and size of the crisis.
- Get closer to your customers and adapt to their needs
One of the first signs of crisis is the stagnation in sales, which is why you should approach your customers and know their needs and how you can help them.
Once you know what those needs are, involve the necessary SME teams and look for the most appropriate solutions.
Some of these solutions may be: discounts, special packages, greater facilities to access the product or service, and even a restructuring of operational processes inside and outside the company.
- Flex your operation
This strategy is most evident when crises are health-type.
COVID-19 has forced companies to operate from home. But some companies demand face to face interaction. In such scenario, providing employees, a safe working environment during COVID becomes important.
One of the most commonly used emerging measures is the adaptation of work to the figure of the Home Office or work from home.
It’s complicated at the start, but if you manage to adapt the work of the different areas of SME to work from home, you’ll be ready to continue the operation of the company when the health crisis comes.
- Adopt electronic signatures
Without a doubt, one of the obstacles that represents the greatest difficulty for companies is the digitization of their processes, both internal and with customers.
Digitizing an SME’s processes is one of the most necessary steps to take, as the benefits are multiple and the disadvantages non-existent.
The most important thing is to survive the times of crisis, and if possible, grow and develop even in such difficult conditions.