Situations like the coronavirus pandemic endanger SMEs, but also provide an opportunity to assess and change what is not working. It is time to make decisions, that's why in Hispanic Entrepreneurs we offer you a guide to prepare the company to survive the crisis.
Always aim at your goal
And your goal right now is to get your startup to pass the most critical stage. In a time of uncertainty, not everyone handles stress and anxiety well. But you must strive to keep your mind clear. Be realistic, stay calm, and act with determination. It is your business and your future will depend on the decisions you make at this time.
Now is when your ability to manage will be tested. Therefore, the first thing is to understand that the current situation is not the same as it was a few months ago and nobody could have foreseen. The market and consumer priorities changed, and the overall economy was hit by the implemented measures.
You have to make the decisions that are necessary to achieve your goal. This may involve changing the business model or operations within the company. You have to act on time, waiting for the last moment can be a serious mistake.
As a good manager you must also keep employees and suppliers informed of what is happening in the organization. Also, you must understand that these are difficult times for everyone and you must be empathetic with what is happening around you.
Be flexible
During these difficulties you must also learn to be flexible. There are changes that will be necessary, perhaps you have already had to implement some, such as telecommuting. This may need to be extended to protect employees.
You will face situations such as having to modify production, as did the distillers that began to produce alcohol gel, for example. Also, you may have to change production levels or face supply problems.
You will also have to negotiate with suppliers and customers, or perhaps you should look for new alternatives to distribute products etc. Remember that your company is not the only one with problems, it is a global crisis.
Being flexible will help you to face the changes that you must implement. But you must take care of the limits, there are circumstances in which you cannot yield, as in the fulfillment of the COVID-19 prevention measures in the company.
How to prepare the company to overcome the crisis
There are four fundamental elements that you must take care of in order for your business to overcome this difficult moment: employees, finances, operations and the business model. We offer you more details below.
Employees
It is time to take care of the employees and be empathetic with their situation. Understandably, productivity drops a bit because they also face stress, but they must overcome it. The idea is to try to keep them, especially if you have a specialized staff. In this case, it is in your best interest to reach an agreement with them rather than lose them.
Provide them with the necessary supplies to take care of their health in the work area; If anyone feels bad, let them go to the doctor.
Be honest, explain the situation of the company on time and inform about the protocols to implement. If necessary, you can reduce hours or establish rotation shifts.
On the other hand, if it is necessary to reduce wages, it begins with the highest links of the company. Treatment must be equal to earn everyone's trust.
Finance
The impact is not the same in all sectors. Although the effect of the covid-19 will be negative for most businesses, in some - such as e-commerce - it can be positive.
The business situation changes more frequently now, so you should review the budget every month. Same as cash flow. Check which commitments are at risk of not being met and which are a priority.
Calculate expenses and find a way to reduce it, cutting those that are not a priority, such as expensive offices or per diem. If you are thinking of an expansion it is better to wait a while.
Review accounts receivable and negotiate payment times with suppliers. If you need capital you can take advantage of programs like PAR Boost of Corfo.
Business model
The market has changed and consumer priorities are different. Review your business model and adapt it to the new reality. This implies putting aside everything that does not generate business.
Stay tuned to the market for opportunities that you can take advantage of. Especially those that arise within your same industry.
On the other hand, if you have not already done so, scan your company. Digital businesses will grow further in the coming months.
Operations
The way in which the company works will also undergo changes. Teleworking is an alternative to reduce the presence of personnel in the company. If you are going to implement it, set daily goals for workers, keeping in mind that not everyone is familiar with working from home. Similarly, there may be difficulties in connecting to the Internet or lack of specialized equipment.
There are also cases where they will have to reorganize work teams and processes such as production and distribution.
Making timely decisions will be key in preparing the company to survive the crisis. You should not delay the actions because if you do, the impact will be much greater. You can always turn to organizations like Corfo or sercotec looking for support. If you need advice we can also help you, contact us.
