Survival business strategies for an NRI in the US during the pandemic
The pandemic COVID-19 has caused a major impact on businesses across the country. The Government has been urging the Americans to stay indoors to control the further spread of the pandemic; however, the productivity and the economy have been affected.
Businesses are finding it difficult to maintain their workflow and financial stability during these challenging times. The NRI businessmen and entrepreneurs in the US are facing a lot of challenges due to lower revenues and profits. Be it an established business, a start-up or a small business reconsideration of business strategies is the only way for business survival in the country during current times.
So, let us talk about some of the strategies that NRI businessmen in the US can implement for their business survival.
One of the major challenges which are being faced by businesses currently is access to cash. In these challenging times, overhead costs like payroll, rent, and utilities leave very meager cash with the owners. In addition to these, lack of revenue from services that are slowing down is making the entrepreneurs distressed.
NRI business owners must take up efforts to provide immediate liquidity and keep the business solvent. Government organizations like the “Small Business Workforce Stabilization Fund” would help in providing financial assistance to those who are facing a financial crisis due to the pandemic. This program can also provide immediate cash flow to the vulnerable businesses by keeping their employees on payroll and allowing the business to grow after the customers return.
b.Planning in advance
It is difficult to estimate by when this pandemic would pass; so to be prepared with a plan would be beneficial for business. NRI businessmen can make a plan for 3-18 months depending on the nature of the business and the estimated time needed for the things to be normal. The businesses can immediately stop certain flexible expenses such as hiring, travel, and marketing expenses. Strategies should be made to focus only on essentials such as sales, renegotiation of fixed expenses such as rent, salaries, etc. Businesses must consider a revision of their revenue goals and timelines of manufacturing along with the creation of a new operating plan.
For those businesses which have to think about making decisions such as employee layoffs, the most suitable option could be to reduce salaries of the highly paid employees and to retain those employees who cannot afford to lose their job. The Federal Government has also formulated a relief plan which would help small scale businesses in affording their payroll and cover expenses easily such as paid sick leave, loan repayment, and paid FMLA. It is advisable to carry out employee management according to the Government directives and businesses must also try to offer extra compensation to their employees whenever necessary.
Moreover, the employee s must be engaged during these times and the productivity should be maintained. The entrepreneurs must guide the employees and should try to help those employees who are facing any kind of mental issues. The morale within the employees must be kept high and this is feasible by being connected with them digitally through various applications like Zoom, Skype, etc.
d.Turn digitization into an advantage
The major challenge of this pandemic for businesses is not only to sustain their productivity by the digitized operations but also to focus on the plethora of new opportunities that have come up for the workforce through digitalization. Digitalization can be considered as a catalyst that would help in changing the business model creatively. Transferrable manpower and increased productivity of remote working would be beneficial for businesses.
e.Maintaining transparency and keeping stakeholders informed
Customers are the ones who keep the business running and without customers, a business would not be able to flourish. Since, the pandemic COVID-19 has created a crucial issue which we all are facing together and so, staying transparent with the customers and keeping them updated about the situation is necessary. If the business is communicating clearly with the customers it would help the customers to be more empathetic and understanding.
Moreover, stakeholders also play an important role in the success of a business. The NRI businessmen must seek business advice from their investors or from other external experts to make plans and strategies. It is necessary to discuss the impact of the current situation on the business with the stakeholders.
Hence, during these distressful times, it is necessary to stand by each other and provide assurance to each other. These tips mentioned above would be helpful in keeping business functional and intact during these times of pandemic.