The Indian economy has suffered a major setback due to the coronavirus epidemic. Due to this, small industries of the country have been affected the most. Large companies have sufficient revenue, contingency funds and a significant consumer base to avoid losses. But small industries do not have enough money to protect themselves. So by the time this disaster ends, most of them will be in a state of closure. But the owners of small industries can still save themselves from ruin.
Let us understand by an example. There is a salon in your neighbourhood. Till the outbreak of the coronavirus, his business was flourishing. All the employees worked together and the customers were happy with their service. The owner of the business was about to increase the business that the coronavirus spread on the market. Fearing, customers suddenly stopped going to the store.
First, the business survived by extracting some revenue. But later that too ended and the bills kept on coming. The business owner is no longer required to pay electricity and other bills. But still a big amount that he has to pay is the rent of the shop. With this, the owner of the business has to go through another challenge, that is to give salary to the employees.
In the end, the business owner has very little cash left. Operating margin is very low and savings have already been incurred. Now what to do next? The business which was flourishing earlier, is struggling now. This can lead to the closure of the business in the coming time. Well, this example is hypothetical. But if there are many such businesses in the market, then after this virus can be closed.
But you have no need to worry. You can save your business by working on some strategies to avoid the situation of Covid-19. Let us tell you some points that will help your small business.
Look again at your suppliers
Your biggest objective is to save cash for your business, which can be done in many ways. Therefore, you can ask for help from your suppliers and vendors. Since suppliers and vendors have been doing business with you, they would definitely like to see you in the market again. So tie up with others. This will also help you in future.
Do everything carefully: what is happening right now, you have to focus on it. You have to keep an eye on the changed conditions. But by giving you time, also think that when everything becomes normal then how will you make your business stand again. You will also need to give time and think about how you can take advantage of the opportunities that are coming. You can get help from financial professionals, who can help you determine the cost of rebuilding your business and prepare a plan for the same.
Take a small business loan from the bank
Banks provide a different type of small business to business owners doing business in India. If you need more money in business, then you can also take a loan from the bank. Take as much loan as needed. But our advice is that you see all your needs, only then apply for a business loan. Since it is a kind of amount and you have to pay it later, then take the same amount, which can be returned. You can take a short term or long term business loan as per the requirement. The duration of this loan can be from 12 months to 10-15 years.
Contact those you trust: We recommend talking to people with whom you work regularly, such as banks, vendors, etc. You can look at local organizations and alliance for resources and advice. Networking can prove to be very beneficial in this time. This can help you deal with the situation.
You also need to deal well with your employees. Be hopeful that everything will be okay and you will be able to open your small business again. Apart from this, keep your employees optimistic that they will return to business soon and their jobs will not go away. After coming back, they will help you to build the business again with more hard work for you.
Business loan from NBFC
NBFCs also provide business loans online. The entire application process is online. So due to the lockdown and curfew in the area, you will not have to go to their office either. You can apply for a business loan online. You can take a photo of the documents and upload them by going to the lender’s website. Verification from the lender will also be online. If all goes well, your application will be approved and you will have to sign the contract digitally. Note that the loan application process does not take more than 3 days.
One advantage of NBFC business loan is that it is an unsecured loan. You do not have to pledge anything to get it. Even in times of disaster, you should not take any property as a guarantee by taking a business loan. In this way you can avoid all kinds of problems.
The situation is bad everywhere at the moment and it can drag on till summer arrives. So whatever you are running, be it a restaurant, a shop or a small business, you don’t have to lose courage. This difficult time will also pass. You do not have to lose hope, you have to stay focused and take small decisions so that your business is not affected now and in the future.