How can Businesses get a Boost amid Corona Lock-down ?
How can Businesses get a Boost amid Corona Lock-down ?
All over world is combating the COVID-19 pandemic with the help of exceptional public health & economic measures. The pandemic has put business houses in a tight spot. Major hit you felt in micro, small, & medium enterprises in our country which offer employment to over 114 million people & contribute close to 30 per cent of the GDP. It is a question for every business house how will they get boost amid lockdown
The small & medium enterprises are struggling with problems like lack of workforce & liquidity crunch. Due to delay in debt realization or no fresh sale of their produced goods. The moratorium in loan repayments in the current situation has come as small step to ease out fixed repayment obligations but still lot more to do to enable it regain its strength and engage the resources for betterment of all.
What should the Entrepreneurs do to overcome the challenges?
Once the businesses start their operation, they should immediately visualize the current status of their raw material, debtor realizations, fixed obligations at least for next 6 months & credit requirements to run the business operations.
The second aspect which needs to plan instantly is realigning the existing business. With new set of demands which are majorly for goods helping to fight the pandemic. e.g. if a garment manufacturing unit starts its operation with its old established set of product then. It has to ensure high amount of working capital to fund the storage of finished goods. Because demand for garments will arrive a little late once the people come out of the fear of disaster. However if the unit start manufacturing face masks. Then the demand for their production will be enormous globally and additional funding can be availed as per the need.
A well assessment of revenue growth & existing resources utilization is highly important to project a business prospectus of new product. With well thought projections, many lenders will come forward to lend without collateral.
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