The year 2020 has shaken the crust of the Indian Economy. All the Business domains, cash flows have dried up and disrupted majorly due to the periodic extend of national lockdown. Due to the pandemic situation, small, micro, and medium enterprises are the worst affected sectors. In India, over 63 million such units work, which contributes nearly 1/4th of India’s $2.9 trillion economies, employing more than 500 million workers. They are the backbone of the Indian economies and regular cash flows to this small business are the lifeblood for them, contributing 49.66% of total Indian exports and 29.7% of GDP. Due to consumers denying to move out, the business has been cash-starved due to which they are slowing down and temporarily closing.
To turn the wheels during unexpected slumps, small business don’t have large profit margins or cash reserves, unlike Big MNCs. So if you are you running out of money? Or are completely without hope? DON’T GIVE UP! Your business can survive this crisis! It would be tough! But there are various ways through which small businesses can survive and bounce back in 2021 and come out as a stronger business on the other side of this. Let’s just list them out:
Government Initiative: Governments across the world have placed financial plans into place especially for small businesses. The Government of India is taking step towards providing enough financial resources for fulfilling the needs of all. For this, RBI has introduced TARGETED LONG TERM REPO OPERATION (TLTRO) on 27th March 2020. LTRO worth ₹100,000 crores has been introduced as a tool to enhance the liquidity of the system by helping banks to increase lending at lesser rates. A six-month moratorium of loan has been included for all long terms loans till August 2020. The GST return filing deadline, from March to May has extended to 30th June 2020. An EMERGENCY CREDIT LINE GUARANTEE SCHEME for all small, medium, micro-enterprises who are struggling due to the crisis, has been introduced by our Finance Minister NIRMALA SITARAM, with approved funding of RS. 3 Trillion at capped interest rates. Along with liquidity measures in the revised definition it has been mentioned that the scheme will compel small businesses to practice business and digitize their operations through e-market facilities.
Community Engagement and Customer Reassurance: The pandemic is a situation in which you require a back from your customers with whom you have built customer loyalty. It’s not just you who is suffering due to this crisis, we are in this together, so be transparent with your customer and start to reinforce relationship foundation with them. Make them aware that there is a face behind this business. Engage with your community by creating social content, sending emails, and encouraging them in their struggle. Swap “Woe is me” with “Lets rally together” to motivate people in the community. Analyze customer data and prepare a list of customers to go more personalized by sending customized emails. For example- create a list of VIPs- those who’ve have been always engaged with your business for the longest time or who’ve spent the most. Give them special discounts as a gesture of thankfulness. To make them realize how much you appreciate them, ask for if they want to be a part of the loyalty program, or ask for their feedback. Nowadays, small business is doing a program where they are encouraging their customers to buy gift cards or pre-purchase products. This will help in getting in the revenue, the customer will also get the benefits of redeeming the product once everything is over and you will still be around when everything bounces back to normal.