What happens to an SME when a lockdown is imposed?
- Suspension of some ongoing business negotiations
- Cancellation or freezing of newly acquired contracts
- Some clients start inventing every possible excuse not to pay (the worst due to intellectual dishonesty)
- Unfortunately, some clients go bankrupt
- Increase in unpaid invoices
- Some suppliers shorten payment terms due to their operational cash flow
- Contraction of the company's liquidity
- Fixed costs need to be reduced (rent, etc.)
- Banks request more guarantees (bonds, etc.)
- Investment plans for development need to be reconsidered
- You may be forced to lay off employees
- You lose your company's historical memory
- You need to postpone new hires
- Some of the tasks from laid-off employees fall on the remaining team
- Teleworking quickly changes team management
- Almost all planned goals are disrupted
- It's crucial to ensure the highest quality of service to your active clients
- You need to revisit your business model
- You need to revise some internal procedures
- You must continue to build team loyalty
- You need to expand your sales channels (social selling, etc.)
- You need to improve the effectiveness of digital communication
- You must increase your know-how with training to stay competitive in the market
The secret to overcoming all this?
There are two key aspects to take care of: the business and the human sides.
For the first, take a moment to sit down and create a solid strategic/operational plan, which we will discuss in another video.
For the second, live in the present, treat the people who love you well, and take care of yourself.
Because no matter what happens, these are the only two things that will remain.
Is it easy? No! Am I capable? I'm trying! Unfortunately, no one in school or home transferred the know-how to deal with such a drastic paradigm shift.
Follow us on our channels to share the best strategies for climbing this new mountain. ;)
