Business in unusual times

Author: Anirudh Lamba, Senior Consultant (Delna Avari & Consultants)

Unprecedented times call for unprecedented solutions. As the world grapples with Covid-19 with no visible relief in the immediate future, the economy has started taking a downturn. As per IMF, the recession has officially started. The most affected from this double whammy is the Small and medium enterprises and start-ups for whom a continuous cash flow and working capital is a business lifeline. When the country is in a lockdown state, many of such businesses are facing a brunt and the uncertainty of the current situation is not helping the cause.

We have tried to list down a few thoughts on how these businesses can utilize the down-time in planning and innovating for the current as well as a future scenario. We have to remember that difficult times tend to stretch human imagination to the end of finding solutions which would have been incomprehensible in normal times!

1. Business Communities for start-ups and SME’s. Social media hotspots can bring the businesses closer and help them learn from each other’s understanding of the scenario.
2. E-conferences with Industry experts who saw the 2008 recession and share their learnings. This can be done trade specific. For example, an event and exhibition specific e-conference in which the industry experts who witnessed the 2008 recession share ideas to the new entrepreneurs.
3. Innovation during a crisis can bring effective changes. Industry 4.0 pillars like AI, AR/VR, Telemedicine, Edutech etc can be tested to bring out and study consumer experience. Just saw a Car launch which was pre-planned as an event turned into a Digital talk show which was way more innovative and eye-catching.
4. Gift cards: It may look like a small step but giving away gift cards at reasonable prices can help with cash flows. People may want to acquire gift cards at relatively cheaper prices for to use them in future.
5. Hyperlocal shopping: People are not travelling far from their homes for services. If hyperlocal services step up, convince the locality about their processes, safety and hygiene, they can gain customer loyalty which will last beyond the corona crisis.
6. Offer Unique deals: Unique and customized deals for first-time customers, repeat buyers and lost customers can help in maintaining the consumer base and business.
7. Utilize the time to build your brand: It’s a great time to get the eyeballs and establish clear and effective communication on what you are doing during the crisis. There are a lot of established brands which have lost the plot and have gone in hibernation. Local communities and SME’s can differentiate themselves by creating a social brand messaging and convincing the customers/potential customers by deploying innovative communication techniques. Some examples maybe – build masks, hand sanitizers, effective flyers, take-out food parcels for communities, adopt old age homes, become caretakers of old citizens.
8. Strategize for short/mid/long term: Every SME needs a plan right now on how to deal with the current and future situations that may arise. Short term goals coupled with a broader business vision may help to sail out of turbulent waters. A checklist on business preparedness can be a starting point. This checklist can help you figure out what to prioritize and to create a plan of communication for your employees.
9. Experiment with your distribution: It might be a great time to experiment on how the supply chain and distribution work for your business. Eateries and restaurants are going flexible with a focus on takeaway (requires new packaging and raw material), local grocery stores are getting new customer profiles (excellent time to convert them for long term).
10. Restructure Finances: Planned finances need to be relooked at and divided as per the short/mid/long term priorities.
11. Government support: It's critical to understand how the measures rolled out by GoI will be helpful for your business. A deep dive into the details and understanding the functioning may help you get some relief. Ministry of Micro, Small and Medium enterprises are trying to reach out to all of these enterprises for manufacturing and supplying of some critical items. May not be a bad idea to start experimenting a little.
12. Remote Mentoring and online workshops: In-person local chapter workshops and mentoring via phone, email and webcasts can be useful to bounce off your thoughts and get expert advice on how to peddle through the situation.
13. New opportunities: Many existing SME’s/ Startups can diversify their businesses and explore opportunities in this crisis. Think of how the existing business can be tweaked or new avenues can be explored. People have become more conscious of health, hygiene, safety, food products, water and cleanliness. Diversification of business to adapt to current sentiment might result in new business and expansion.

While all the above suggestions focus on looking at your business from a different lens, it is imperative to stick to the core of your business ideology. A car manufacturer can make ventilators to support the hospitals in desperate times because of its expertise and process-oriented assembly-line approach. A food delivery app can help vulnerable citizens by providing them medical essentials and so on. The strength lies in identifying your core strength and innovating around it rather than reinventing your business model.

We wish and hope for the turbulent times to pass quickly but at the same time encourage the business owners to identify this as an opportunity to innovate and create a sustainable path to deal with any crisis in future!

If you are a business owner and need support on a methodical approach to plan and prioritize your checklist and create a blue-print for the strategy, do reach out to anirudh@delnaavari.com or www.delnaavari.com.