Coping Strategies for SMEs During the Epidemic

Coping Strategies for SMEs During the Epidemic

This is a special year, a special period, small and medium-sized enterprises are facing unprecedented challenges. The international environment is uncertain, many enterprises are already at the critical point of transformation. How to minimize the loss of enterprises under the outbreak? How to make enterprises recover quickly after the epidemic? During this difficult time, the government has introduced many new policies to help SMEs, what entrepreneurs can do with these policies and find their own self-adjustment strength to deal with the current situation are the most important facts to win the battle.

This article will share 7 suggestions for the most critical problems the entrepreneurs are facing now.

1. Full Confidence in, and reliance on, the Government.
Small and medium-sized enterprises must always pay attention to and make full use of the government’s preferential policies. Such policies include, but are not limited to, tax reduction, rent reduction, interest reduction, loan renewal, and subsidy policies to encourage financial innovation and guiding policies for the development of specific industries. The government may also implement relief measures for companies and employees during prolonged outbreaks. The outbreak will have an impact on China’s short-term economy, but the underlying trend of long-term macroeconomic growth will not change.

2. Medium and Long-term Development of the Enterprise

It is urgent to speed up the digital transformation of enterprises. In fact, many enterprises have already started digital transformation in 2019. In the era of VUCA, enterprises really need to respond quickly in innovation and development in order to be competitive. With the expanding use of 5g and the shifting trend from traditional offline business to online models, enterprises should be focusing on how to further carry out the digital transformation, reduce labor cost, and improve efficiency. Offline scenarios will no longer be the priority and with the further continuation of the digital transformation, operations will be more efficient and enterprises will be more able to quickly respond to customer demand.

3. All-Staff Marketing

In special times, all employees should be willing to engage in sales. No matter how high the position within the enterprise, getting the order is the primary goal. In the past, we have believed that “expanding product sales” is the key to corporate profits. Today, many people are beginning to understand that a strong “relationship-based trust, high viscosity, high activity customer” is the most important core asset of an enterprise. Therefore, the essence of All-Staff Marketing is to let all employees sincerely hold the customer in their hearts, adhere to the concept of customer needs first and customer value first, and to form customers alliances based on interest. In this way there can be no failure.

4. Fully Strength Development of New Products

When the economy slows down, it’s important to focus on developing new products. Developing a new product during a downturn is not about rushing to develop something new, but about using what you’ve done in the past to create new demand, and developing a new product based on the extension of your existing technology and product lines.

5. Radically Cut Costs

To remain profitable during the downturn, companies must cut costs thoroughly. The reduction in costs must exceed the loss of revenue. Processes, equipment, hardware, organizational structure, system software, raw material costs, etc., everything should be re-examined. Be thoroughly rational and resolutely cut costs.

6. Maintain High Productivity

Keep productivity high during downturns. Because of the decline in off-peak orders, if the same number of people are still producing, the production efficiency on the manufacturing site will decline and the working atmosphere in the workshop will be relaxed. Taking extra people off the production line for equipment repairs, environmental remediation and learning and training can propel the company forward again.

7. Build Strong Relationships

Management must love “their” employees and employees must understand ‘the needs of’management. They help each other and support each other. They must establish this sort of relationship and make it part of the corporate culture. When the economy is recovering, the managers [will] take the initiative to give their employees additional pay and salary increases to repay the trust and support of the employees and the labor union. The success of Kyocera company is, in large part, due to the successful ability for management and employees to work together and has allowed for great development and achievements.

When a crisis strikes, cooperation is the only way to get through it. Enterprises should learn to get along with all kinds of black swans and gray swans, learn to build long-term trust and cooperation alliances with shareholders, creditors, management, employees, suppliers, customers, financial institutions and other stakeholders in a turbulent and uncertain environment. When the external environment changes, price negotiation and cost sharing mechanisms can be introduced in the alliance to maximize the long-term interests of the whole and the individuals within that.

When a crisis strikes, all responses come down to action. Only by truly turning the aforementioned confidence, cooperation, innovation and planning into action and persistence, can the enterprise overcome the difficulties, achieve the phoenix nirvana, rebirth, turn the crisis into opportunity, and set sail again!

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