5 Tips to Help SMEs Go Through Difficult Times

1- Do your cost control analysis

• Have a detailed cashflow forecast week per week for one month and then monthly for the next quarter. Be as precise as possible.
• Study your Profit&Loss and have a Gross profit calculated per product or services.
• Don’t cut too deep in your expenses because your business may never recover if you do so.
• Manage your inventory in a better way, reduce your production, find another supplier, re-negotiate your payment terms,etc.
• Don’t cut back on Marketing, it is in a moment of crisis that you will need it the most. Invest in low budget marketing.
• In hard times you have to make hard choices.
• It is very important to retain the right resources and to let go of the employees that bring less value to your company.

2- Focus on the Long Term

• Don’t be blindfolded by your immediate cashflow problems.
• Take a step back and prioritize the projects that generate Revenue: Invest your time, money and energy only selling the products/services that are the most profitable; it should be your core competency.
• The crisis is the opportunity to amplify your skills and come up with new solutions.
• Search for geographical expansion and innovative products that will change your market

3- Look Outside of the box

• Look beyond the regular boundaries of your business.
• It is time to look around you, what are your competitors doing? Be different from them.
• Invest in Tech resources. Train and Meet online, offer home services, free deliveries, etc.
• Don’t get stuck with your previous way of working. Be resourceful.

4- Use part-time consultants/freelancers

In difficult times, surround yourself with professionals; they will make you save a lot of money and also they will help you make the best decisions:

• Cashflow Forecast and cost analysis: get a part-time Finance Manager (Contact CTC Accounting in Dubai to find a part-time finance manager>> https://www.ctconsultancyuae.com/)
• Hiring/firing staff: get an HR consultant
• Customer services: get a sales consultant
• Marketing campaign: Get a social media/ PR agency

You can use their services on a temporary basis, and you don’t need to pay gratuities, tickets, holidays, allowance, visas, etc.

5- Make the most of your current customers

• Offer better customer services and diversify your offers to them.
• Let them know about your new services/products.
• Help them go through this difficult period.

And remember, bad times don’t last forever, stay informed and seek for opportunities.