Small companies are hit hardest in COVID-19’s unprecedented pandemic. Moreover, small businesses tend to operate with just a few months of cash flow (at most), and when something catastrophic like this happens, it can be very tough not just for the small business owner but also for the workers they support.
And how will SMEs survive the turbulent times in 2020? Let’s find out!
1. Stay Calm and Avoid Getting Panicked!
It can be easy to tell but hard to execute. Especially when the cash runs out, it can quickly go overhead, so always remember to take care of yourself in a way that works for you. Eating safe, nutritious food is always a positive choice, and if possible, try some exercise. Working after yourself will help you remain relaxed, which in effect will also mean keeping the team relaxed, and hopefully allowing you to come up with new ideas to move forward. Take time to calm yourself and your mind before making any drastic decisions in the face of difficult decisions
2. Stay vigilant of government policies that may come to your rescue
Governments across the globe are now bringing together and implementing steps to help small business owners, and this is changing daily. MCA in India, for example, took steps to help corporations battle COVID-19 crises. Keep yourself updated with your governments and other essential bodies, such as banks that also have social responsibilities and can help you cut costs. Consider support options in both markets if registered in one market only.
3. Capitalizing Opportunities
Capitalizing on events like this can always be a tedious task, but it can also be a wake-up call to rethink your company. In this case, will the business model withstand the changes from the COVID-19 pandemic? How do you want your customers to move forward? Who would matter, and how will you satisfy a potential customer? Can you digitize and start selling goods or services online? Will you incorporate earnings loss management technology by providing new ways to communicate with your customers?
4. Tax Payments and Force Majeure Clause:
Seek assistance from a business professional if deferring payments will impact your eligibility for other package stimulus options. Both companies are concerned about the implications of non-performance of their contractual commitments and difficult to achieve annual compliances for private limited companies. A requirement that prevents businesses from these defaults is the force majeure clause identifying events / s that justify a party’s non-performance. Thus, it is crucial for companies to look for examples of relevant language such as “disease,” “epidemic,” “pandemic,” “quarantine,” or “government acts,” which can be interpreted to include COVID-19 outbreak and excuse them for their clause.
5. Licensing Requirements
Local government would need approval if you run your business from home or have changed the way your business operates and how you do other types of business. There are exceptions, however. For example, if your restaurant now provides a takeaway instead of food, using your commercial kitchen to prepare food, no other approvals are required. The same applies to trademark renewal if pending. Now is the time to learn your renewal dates, updates, and other enforcement filings as you have time. Understanding your enforcement status in these times is, therefore, the best way to stay prepared for the future until companies start working at full pace.
This is a vital time to reach your connections for support and advice. Controlling your situation is good for your positive mental health. Call the support networks and speak to other small businesses to share ideas and creative activities. Proactive looking for reliable sources of information is also an important way to keep up with the new coronavirus research trends for other small business owners.