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Is your business COVID ready?

CA Reeturaj Verma 
on 19 May 2020

LinkedIn


Strategic Planning:

If you want to walk fast, walk alone. But if you want to walk far, walk together. - Ratan Tata

To grow a Business Strategic Planning is must. To gain strategic Advantage SWOT analysis of Business is important. Business cannot grow in isolation to get maximum growth in your Business one should create Strategic alliances and Collaborate with other.

Lets understand with an example:-

The Organization in the Business of Printing Visiting Card and Logo designing should collaborate with Website developer in a way to exchange customer with each other and Growth of both business is possible.

Focus on existing Customers:

Post Covid-19 pandemic most of your customers will also might be facing Cash flow problems same as you, in such situation will it be better to demand more money from them? Or to increase prices of your products or services?

Well today there is high Competition in Market. If you will be forcing your customers for payments or increase prices of your product then customer will switch over from you hence rather than doing so Businessman should arrange meetings with Customers and on mutual understanding payment terms should be changed so that it would be comfortable for both parties and Customer will remain with you.It is an Opportunity if you will show support to your Customer in such a time like this they will remain for long term with you.

Human Resource Management:

It has been said that Human resources are eyes and ears of organization. Growth of Organization depends on HR. Now many Employers may think of retrenchment strategy which can have negative impact on Goodwill of Business.Then how to retain Good employees in Business that too without increasing Cash outflows?

Is your business COVID ready

Well there can be many other ways to retain your best employees. Employer should give ESOP plan where today organization promises to give certain shares of Company based on performance target to allot shares at some future date. The benefits can be No cash outflow to be incurred today and Employee will retain in business for long term and additionally will work hard to grow business by achieving performance targets in this way employee and Employer both will be at win win situation.

Cash Flow management:

Due to Covid-19 pandemics every business is closed in Lockdown so for the starting period of few months post lockdown Business will not have more New Cash inflows in such a situation how one can manage their business to grow?

To overcome this problem Businessmen should classify expenditure in 3 parts first is 'Very important' second is 'important' and third is 'others' not much important.Spend only on that expenditure which are 'very important' and so important to keep business alive.

Loan can be taken from Banks and financial institutions to keep your business going. The Government has already come up with idea of 'Self Reliant India' where Loan can be availed very easily.

Maximum Utilization of available Resources:

Objective of Business is profit maximization for that cost reduction is important.

One may question How cost reduction is possible? Cost reduction is possible through maximum utilization of resources.

Following are few ways to reduce cost through utilization of available Resources -

1) Instead of Employing Full time employee, services from freelancer or part time employee can be availed. Because in case of full time employee burden of fixed cash outflow Is there while in case of freelancer you have to pay only for the work done.

2) If you are already established into market then you can sell New products to your existing Customers which will reduce all marketing expenditure and as all customers have belief in you it will be very easy for you to increase the sales.But New Product should be with Good Quality otherwise it would have negative impact on your existing Business.

3) Rather than incurring big amount of fixed expenditure one can use alternative ways for example instead of Buying new office one can shift to sharing places , instead of Buying Motor vehicle for transportation one can use services of other Transporters

 

Digitization:

Now in this decade of Post COVID-19 winner will be the person who adopts digitization at earliest. Digitization should be used for marketing as well as routing Business processes.

 

Benefits of Digitization:-

1) Information technology can make processes of your business so fast and reliable that definitely makes your business grow

2) Expenditure of Digital marketing is lower as compare to benefits received. It is very easiest way to make your products or services reach to the wide number of Customers


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