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29 Jul
  • Jetsup Holidays Pvt. Ltd.(Content Curator)
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When the economy is in turmoil, even existing businesses with a stable track record have to fight for keeping their doors open. Fighting back and staying financially fit, when sales have gone downhill, supply chains have been disrupted and general uncertainty rules the market, will require savvy planning, adapting to new rules, and innovative thinking. In this blog, we share valuable tips for business owners to navigate the tough times and remain financially viable.
 
 
Small business survival guide: Steps you can take
With fears of an economic downturn gripping the business community, following an effective business strategy during the recession can go a long way in keeping you safe. 
 
Tracking government initiatives
Since small businesses are an integral part of a developing nation’s economy, the government has been proactively announcing measures to alleviate their situation. As a means of beating the cash crunch faced by small enterprises, the government has announced several schemes guaranteeing loans for small business owners
 
Aside from a small business loan, you can also get a tax filing deadline extension, an increase in the insolvency threshold for MSMEs, etc. among other things.

Also Read: Funding Options for Small Businesses and Start-Ups
 
Regulate your cash flow efficiently
Conserving cash and ensuring consistent cash flow is crucial for mitigating the effects of an economic slowdown. This helps pay for rent, payroll, and utilities during the time of the crisis and ensuring smooth operations after it.
 
Going digital
If you are wondering how to grow your small business, technology has the answer. Taking your business online might allow you to offset some of the loss from the lockdown, as you can generate revenue through targeted marketing campaigns. Further, moving to digital payments, invoicing, order placing, etc. gives you the advantage of reduced operating costs and a high degree of convenience. 
 
Getting rid of high-interest debts
Clearing a small business loan in India is becoming increasingly easier, as financial institutions offer the option to restructure the debt and pay it off conveniently. Taking advantage of this and clearing your high-interest debt as a priority, can lead to financial stability in these tough times.  
 
Cut unnecessary expenses
Given the present situation, there is an urgent need to take inventory of staff to see if they are all contributing optimally at this crucial juncture while also taking stock of other costs. Proper financial planning, which mainly includes finding and doing away with wasteful expenditure, can hold you in good stead during the crisis and beyond.
 
Also Read: Must to Know Facts to Get a Small Business Loan
 
Avoid drastic changes, have attainable goals
It is worth noting that even experts are conflicted about what the post-pandemic economy will look like. It hence would make sense to set achievable goals after accounting for the worst-case scenarios and even putting off some grand plans, such as getting a business expansion loan.
 
Communicate with lenders and vendors
Check with your vendors and lenders to see if they are willing to renegotiate payments and interest rates. Doing so can help in cost reduction and provide you with resources for other priorities.
 
Also Read: 5 Things That All Small Business Owners Should Consider Before Taking a Loan
 
The bottom-line
 
The need of the hour is to know how to survive a bad business situation. It might be hard but the above-mentioned suggestions can come to your rescue. You will not just have weathered the stormbut you will also come up with key insights, experience, and business acumen to deal with whatever challenge comes your way in future. It also goes without saying that once the crisis passes, you will be ready to dominate the market. 
 

Did You Know

Disbursement

The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.

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