This sector which is considered as the growth engine of the economy is one such priority sector which has been hit hard. In the recent past, things have become glaringly more complicated for SMEs who are finding it increasingly difficult to retain business orders and obtain credit.
As the recession deepens, businesses are scrambling to adapt. Some are in serious trouble and looking for a lifeline. Others in better shape are searching for smart ways to take advantage of soft markets or weakened competitors. From either perspective, these are times that test a company’s resilience and savvy. Those who make smart decisions now can survive — and may even come out ahead.
Keeping in mind that recessions typically last less than a year and therefore any short term wage saving obtained from a hasty layoff can never be a wise option to fight back. Winners will be those who now double their efforts to get people on the street and pick up some abandoned gems. If you dare not do that, doing the opposite can still is avoided. Don’t blindly follow the big brothers who can cut jobs in thousands and still can manage to smile with pride.
Nobody can tell what awaits your business just yet. Go through any article talking about the possibility of a recession and do not be surprised to find that it ends with a Shakespearean ‘to be or not be’ note. So how should SMEs react at this moment of sheer uncertainty?
It is better to be safe than sorry later. So take measured steps – organize your records so that it becomes easier to forecast future growth, prepare a cash flow projection for the next 12 months, boost your advertising campaigns, dare to invest in R&D activities…. and please stop overreacting.