There’s an adage in the boxing world that says “the punch that knocks you out is the one you don’t see coming.” The unprecedented outbreak of Covid-19 has been somewhat like that punch. No one expected it to become so bothersome, but it did and left massive destruction in its wake. The global supply chains broke down due to nationwide lockdowns; laborers left the worksites and migrated to the safety of their native lands; raw material shortage plagued the manufacturing industry and social distancing norms reduced the working capacity of many industries by a great margin.
Overall, the global economy has been brought down to its knees within a matter of a few months, and the Indian economy is no different. It is now being predicted that India’s growth rate for FY20-21, which was initially forecasted to be around 4.7% to 5.2% by ICRA, will only be creeping at 2%. Due to the severe lack of demand, many fresh startups have already gone under the bus and many are still facing a hazy future. Also, more than 12 crore Indians have lost their jobs during the pandemic – which is an alarming number. So how can you, as a business owner, ensure that your business stays afloat and your workforce remains safe from this wave of destruction? Let us take a look at some of the preventive measures that can save the businesses from becoming victims of the terror of Covid-19.
Sort out liquidity issues and plan ahead
One of the major crises that the industries are facing is the lack of liquidity. Many startups that are in their formative years are struggling for funds, which is why it is essential to make a plan that would help you to avoid a liquidity crunch. This means that you need to take every expense under the microscope and purge everything from the shopping list except what is necessary to continue the operations. Being thrifty will help you save precious resources during this time of crisis. Another thing you can do is to prepare weekly forecasts for expenses. By doing so, you will be able to better monitor where the capital is going and subsequently, you can create a plan that would help you save your liquid assets.
Be transparent with your customers
A crisis of this scale is rare and your customers would empathize with you if you keep the channel of communication open and explain to them what you’re going through. By communicating with your customers, you can get feedback on what they think about the solutions that are being offered by you at this stage. Also, by keeping them engaged, you’ll be able to maintain their loyalty to your brand.
Keep the employee/employer channel of communication open
You need to interact with your employees to let them know what condition the company is in. This would ensure that if anything unfortunate happens, it doesn’t come as a shock to them. The least you can do in these tough times is keep your workers informed of any looming crisis. By communicating with your employees, you can also come up with some ideas that might help you devise strategies to cope up with the problems that the company might be facing. Staying in touch with your employees and arranging regular meetings via video conferencing will help boost their morale and give them hope – something which is very important right now.
Keep the contracted parties informed
It is understandable that due to a shortage of funds, you might not be able to make payments on time to your vendors, but if that is the case, you must inform them in advance. If you don’t do so and wait until the last minute, they might feel betrayed and this miscommunication might ruin your relationship.
Embrace adaptability
Being adaptable to change is one of the most useful qualities you can have at this point. You need to keep one eye on your business performance and the other on the horizon to see what trends are emerging in this unprecedented scenario. For instance, there are many companies that have switched to e-commerce platforms to compensate for the losses they’re incurring in offline retail. There are many such opportunities that you can exploit to keep your business afloat and weather the storm.
About the Author
Ajay Kapur, Founder & Managing Director at Shubham Chemicals & Solvents Ltd.
Ajay Kapur is the Chairman of the highly respected and valued organisation, Shubham Group which comprises five companies, viz., Shubham Chemicals & Solvents Ltd., Divine Autotech Pvt. Ltd., Ansh Impex Pvt. Ltd., Sai Kripa Buildtech Pvt. Ltd., and Sainoor Automobiles Pvt. Ltd. Under the ardent leadership of Mr. Kapur, SCSL provides techno-commercial services to industries such as plywood and laminate, synthetic resins, footwear, FMCG, textile, packaging, pharmaceutical and many more.
About the Company
Shubham Chemicals and Solvents Limited (SCSL) is an ISO 9001:2015 certified industrial chemicals import and distribution Company in India having its registered office in Delhi with branch offices in Haryana and Gujarat. The organisation provides techno- commercial services in the field of marketing and distribution of industrial chemicals. The Company with its geographical advantage is able to cater various industries at same time. The value of commitment and business ethics makes it a leading Company in the chemical trading industry.
SCSL represents and market the products of some of the renowned flagship brands of chemical manufacturers both domestic and international. SCSL is active and aggressive in sourcing products from all over the world to fulfil the needs of its customers.
SCSL is customer oriented company and believes in delivering best quality industrial chemicals, hassle free order placement, seamless logistics services, timely deliveries and quick customer support. Honesty, integrity and robust business processes are hallmark of the company and have become the unique and special preposition over past years. The senior management of the company consists of highly dedicated professionals having both passion and experience.
Honesty, integrity and best in business style have become the Company’s unique and special preposition in the world of trading with its relentless focus on its customers and team work.
