Rebuild Indian MSME’s post Covid

The lockdown might have brought difficulties for Indian MSMEs, but it has also brought with it a whole lot of opportunities. The 8 tips to rebuild Indian MSMEs to tell entrepreneurs to look for opportunities are: 

• Your business is Plan A, do you need a Plan B?

Sathya, an entrepreneur who runs a large food catering unit. She re-looked at her business with a new eye. Her’s is a classic case of business loss no customers, no cash flow. Sathya sat back and thought up a Plan B of growing horizontally and targeting clients in the same sector. She was quick to put it in action too.

For more information also read – https://smeventure.com/reasons-behind-msmes-liquidity-crunch/

• Have you registered your business?

You might have been doing business for years but not bothered to have registered it? The benefits of registering are many – from getting the right Government benefits or finance options and to be compliant with the law. Visibility of the business increases too.

• Need funds to restart?

Every small business would have suffered a setback in terms of earning. The Government’s new schemes for MSMEs have many benefits such as quick working capital availability, tax-filing deadline extension and more.

• Evaluate your spends

If your business is spending on marketing or advertising, those spends might need a revisit. What you deemed fit for a world before COVID might not be the same any more. Plan a smaller spend, decide on a different medium. Try to postpone CAPEX for the time being and conserve cash.

• Set your books right

Are your books in order, do you have receipts for your transactions? This is the time to get these in order. Move any transaction you can, to a digital platform. Examine your options among banks and other funding sources for any future requirement. Implement software to capture transactions and predict or forecast your business, this will help you in the long run.

Do watch – https://www.youtube.com/c/SMEVenture

• Brick-n-mortar versus Click-n-order

If your business is a traditional one that relies on a typical store front and cash counter, you may want to have another option too. Some part of your business could move online – online payment and home delivery maybe? If your business can easily be converted to an online one, it’s time to invest in a website or mobile app.

• Diversify your skills

Adapting to change is one of the key skills of any entrepreneur. If your main product or service is something that has taken a hit during the pandemic, adapt and venture into something connected or upskill yourself.

• Explore and Expand

Explore new means of expanding your customer base. If word of mouth has been one key factor in bringing you customers, try going online. Facebook, Instagram and Whatsapp are the brand new ways of expanding your business, maximising sales with the least acquisition cost!

• Go Local

With the pandemic, also came the reverse migration of workers who were employed by MSMEs across India. If you are running an MSME and have run short of employees, it is time to spend this time in ‘Skilling the Locals’. Hire locals, skill them if needed and enjoy better goodwill in your town or city.

MSME sector is also moving towards digital platforms to run the process smoothly and accurately. 

According to Cisco India SMB Digital Maturity Study 2020, digital adoption will enable SMEs to add around $158 billion to $216 billion to India’s GDP by 2024. 

Companies that are digitising India’s MSME sector are:

Imprezz

Imprezz is the Indian vertical of Germany-based data service company Buhl Group, which was founded in 1995 by Waldemar Buhl. Bengaluru-based Imprezz was launched in 2019, and provides various services such as generating invoices, accounting solutions, payments, and more. 

The core of Imprezz is to become a “backbone for Indian MSMEs” and build a platform that caters to all their needs. The billing and accounting software of Imprezz is available for free. However, it has several add-on features, which has certain cost.

Yarn Bazaar

Mumbai-based The Yarn Bazaar is another company that is digitising the yarn industry. Since its inception, the company claims to have sold yarn worth Rs 280 crore. The business model functions through a website, and Android and iOS mobile applications. It is a holistic one-stop platform for discovering good quality yarns, getting the best price, and vendors.

Both buyers and sellers have to create their profiles on the platform. The buyer can post requirements, compare prices from a list of sellers, and place orders accordingly. The buyer can also request for a sample of the yarn and order for a test report to keep track of the quality of the yarn. When both the parties are satisfied, the transaction happens through the platform.

Lal10

Noida-based Lal10 was founded in 2017. It is an online wholesale marketplace for rural micro, small and medium enterprises in Indian MSMEs. From apparel, handbags to lampshades, it has a total of 30,000 stock-keeping units (SKUs).

In March 2020, Lal10 raised a seed round from Utah-based Sorenson Impact and a few angel investors. The brand has connected weavers and artisans with labels, including Zara, Anita Dongre, Toast, Wills Lifestyle, FabIndia, Four Seasons, and Taneira.