How to prepare an SME to overcome the impact of Coronavirus?

The impact of coronavirus is pretty deadly. Perhaps, it is hard to remember a virus threatening the entire market. This global pandemic has brought about a severe downfall in the market. It is fitting to say that the complete lockdown of cities due to pandemic has brought about the second recession.

There is no hiding the fact that small and medium enterprises are the backbones of every economy. The more these small and medium enterprises develop, the more they will help the economy grow and increase their chances of sustaining in a volatile market. However, as mentioned, the pandemic has caused havoc in the world of SMEs. The rapidly growing market has been struck by a lightning bolt! To make matters worse, the market has entered the bear market phase and there is no idea as to when will things change in a positive direction.

As COVID becomes an overgoing threat to small and medium enterprises, here are a few things that they can do to prepare themselves for the survival challenges lying ahead.

Disaster Funds:

Understandably, the biggest struggle in today’s scenario for a small and medium cap enterprise is going to be the absence of steady cash flow. Having steady cash flow is more than just assurance for an SME owner. 

This helps them to sustain and expand. However, the spread of pandemic has created a disruption in their assurance. And, one knows what to expect from traditional channels in these circumstances. For this reason, an SME owner can opt for simultaneous funding options like that of alternative financing firms like Mantis Funding.

These firms are working behind the scenes to provide relief cash in the form of merchant cash advance and other services. Thus, helping an SME owner to secure disaster funds for his firm in a very crunch situation.

New assumptions for a revised budget:

Perhaps, this is the time to shed some liabilities and focus solely on what’s really important for the firms. Your current budget won’t work in this current situation rather it will take more cash out of your pocket. As Mantis Funding reviews the current scenario, it is apt to say that working with an accountant to devise the possible impacts of the market on your budget is a wise idea.

Income support to the employees:

This is a testing time for both, the owners and their employees. At this very moment, they need your support. Possibly, this is the reason why it is said that an enterprise is like a family. However, given the scratchy cash flow of your enterprise, it would be quite understandable that you are under considerable pressure to meet the demands of the payrolls of your employees. For starters, you can opt for what other CEOs are doing. They are first taking a self-pay cut before telling their employees about it. In this way, you both will be on ground zero and no one will feel undone by the performed action.

However, if you don’t want to act on this, there are alt-fin firms who will readily agree to help you. Firms like Mantis Funding have exclusively designed their services with flexible payments in a way that they can help you in the best of their capacities.