Five Ways to Pivot Your Business during the Pandemic

Business landscape has radically changed in the past several months due to the coronavirus. While many are closing or laying off workers, some are growing with the new landscape. These businesses have seen success because they have adapted to the pandemic. Here are five ways suggested by Brian Soo (FocusMalaysia) to pivot your business and help you weather this economic downturn:

1. The best time to digitalise your business

Digitalisation has proven not only effective but essential to businesses these days to stay relevant. When things are digital and goes into the cloud where it is readily accessible, there is little need to be physically at a location to get data. With the Government pushing for more work from home orders, this will be essential to maintain an efficient workflow.

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2. Have a 24/7 business model

Due to restricted movement, people are spending their time online and most importantly, spending their money online. By bringing your business online, you are not limited to office hours anymore. A 24/7 business model allows you to compete anytime and anywhere.

Online store can be set up in-house or outsourced. E-commerce platforms these days make it very easy to set up online stores, even for the older generation business owners.

3. Re-evaluating your business model

Some businesses are fixated on their products and services, without wanting to change anything. This is the main reason why smaller, more nimble companies are able to survive the pandemic.

With less of a ‘core’ to uphold, they are able to change and tweak their business models. While it may be difficult for some larger businesses to do so, there is still a solution. For example, businesses can package their products towards a more B2C focus.

4. Reassess your business’ finances

If you changed your business model, you should work out a cash flow budget for the coming one to two quarters and assess your business’ financial position.

Knowing the length of this projected runway is crucial to ensure you are able to meet any financial commitments your business may have, such as purchase agreements for company vehicles. Missed payments will affect your business’ credit report, leaving a negative mark on CCRIS. This reduces the business’ chance of future financing application being approved.

5. Find out what assistance is available to you

In these challenging times, the Government and the banking industry have many forms of assistance available for businesses. The Government’s SME-focused Penjana economic stimulus package offers various industry-specific financing options that businesses can tap into at a fixed subsidised rate.

For example, there are financing options specifically for SMEs (Penjana SME Financing) as well as for micro-SMEs (PENJANA Microfinancing Fund). In total, the Government has allocated RM35 billion in the Penjana economic stimulus package.

Following the tabling of Budget 2021 recently, microenterprises with original facility financing of up to RM150,000 are eligible for the Enhanced Targeted Repayment Assistance Programme, with options of a deferment of repayment for three months or a 50% reduction in monthly repayments for six months.

Meanwhile, the banking industry remains prepared and ready to assist SME customers affected by COVID-19. Some banks may offer new financing terms with lower monthly repayments spread over a longer tenure.

 

If your business is still suffering financially from the pandemic, speak to your bank and seek available options. This is a critical period for all businesses. If you need further assistance, do contact us!

 

Reference:

Brian Soo, Keeping your head above water during a pandemic https://focusmalaysia.my/