With the Covid-19 pandemic causing almost a global lockdown, the economy is facing plenty of disruptions, causing several businesses to struggle. While it is important to be aware of the methods to face such situations, it is also essential to have the potential opportunities in mind that may arise once the economy starts to recover.Here are a few opportunities for MSMEs to grab post this economic slowdown:
Restructuring your business model
The lockdown has made several businesses review their business models. Many companies can realize that several support functions like billing and recovery can be efficiently outsourced instead of having full-time employees for the same. Moreover may companies/firms have realized that a few functions can be made to work from home so as to reduce costs. Similarly, internal cost-cutting measures on resources can throw light on the actual possible level of efficiency that businesses can manage to work with. If without too much difficulty and cost, businesses can start production of goods which deal with the medical or COVID 19 benefited sectors (e.g. – alcohol companies starting production of sanitizers, fabrication company making protective shields etc.), it will help them grow even during this time.
New business opportunities
The economic slowdown can open several acquisition opportunities for business expansion. MSMEs may find plenty of new directions to explore via routes such as changes in customer priorities presenting newer customers, or competitors folding up opening new doors for other businesses to take advantage of. Opportunities in sectors which haven’t been affected by the COVID-19 or actually have seen benefits because of the crisis should be explored. Moreover, acquiring companies which are distressed and are no longer able to continue their business is also a good strategy.
The work-from-home solution
The lockdown has made a large number of companies adopt a work-from-home solution that, for several desk-job professions, has proven to be just as effective as a desk position.
By enabling part of the desk-job staff to work remotely even in the future, companies can save out on the high costs associated with commercial real estate and invest in the software instead that is required for employees to work from home.
Attention of global players shifting away from China
The pandemic has caused the global sentiment against China to be unfavourable. Plenty of global players want to move their manufacturing to India, which can be another opportunity for MSMEs to capture as orders to bigger companies will automatically trickle down to the MSME sector.
Opportunities in the medical industry
Covid-19 has shown the medical industry how prepared we really are to face a global pandemic. The pharma and medical industry is likely to grow in the future due to this reason, as the world will try its best to learn from the shortcomings of our current response to Covid-19. MSMEs who are dealing with the medical industry will benefit in the short term as well as medium term because of the crisis.
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EFL (https://www.efl.co.in/) provides the financial aid tailored to specific business requirements, with 28 years of helping businesses create success stories. Right from business loans and working capital loans to emerging enterprise loans, EFL covers all aspects of what a business might need to thrive in the competitive landscape. With 8000+ MSMEs served and 15000+ machines financed, EFL is the partner you need for your success story.