5 Tips to Help SMEs Go Through Difficult Times

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Caroline Thevenot

Founder and CEO

16 March 2020

In unpredictable and difficult times, it is important that managers are able to take fast decisions and adapt quickly to the changing conditions. They have to learn to be flexible and rethink their plan to move forward. Here are 5 tips to help you go in the right direction:

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)
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.

Conclusion

Navigating difficult times can be challenging for SMEs, but with the right strategies, resilience, and a proactive mindset, businesses can emerge stronger. By conducting a thorough cost analysis, focusing on long-term goals, embracing innovation, leveraging part-time professionals, and maximizing relationships with existing customers, SMEs can position themselves for recovery and growth. Remember, every crisis brings opportunities for those willing to adapt and evolve. Stay focused, flexible, and forward-thinking.

Need expert guidance? Contact CTC Accounting to explore tailored solutions for your business needs.

FAQ

How can SMEs effectively manage their cash flow during tough times?

SMEs should create detailed cash flow forecasts and focus on controlling costs without compromising critical operations. Renegotiating payment terms and managing inventory efficiently are also key steps.

Why is it important to maintain marketing efforts during a crisis?

Marketing keeps your business visible and helps retain customer trust. During tough times, low-budget yet effective marketing strategies can sustain and even grow your customer base.

What are the benefits of hiring part-time consultants for SMEs?

Part-time consultants offer professional expertise without the long-term commitment of full-time employees. This approach reduces costs while providing critical support in areas like finance, HR, and marketing.

How can SMEs use innovation to stay competitive in difficult times?

Exploring new markets, investing in technology, and offering flexible services such as online consultations or free deliveries can help SMEs differentiate themselves and meet evolving customer needs.

What should SMEs focus on to strengthen relationships with their current customers?

SMEs should prioritize excellent customer service, communicate regularly about new offerings, and provide solutions that help clients navigate challenging times. Building trust and offering support foster long-term loyalty.