Direct Solutions Addressing the Economic Crisis of Small and Medium Size Enterprises
Immediately Needed
(1) The economy is in shock, and so the Entrepreneurs Management and Employees. You need to move into actions which are in your own circle of influence (which we can be readily pursued). Further inaction pending changes from the external environment, does not help.
Practically:
A. Stop talking about the economic crisis within the company.
B. The Administration shall sent positive messages without of course underestimating the situation.
C. Preparation of Action Plan for the following:
Collection of arrears and Liquidity
(2) Campaigns for collecting outstanding debts through workable arrangements tailored to the customers / debtors. You need to study each customer / debtor and prepare and individualized recovery plan that includes incentives for recovery. It is important to find a win-win solution for both sides and within the capabilities of debtors without exercising excessive pressure.
(3) Credit without collateral should be minimized and if possible stopped to reduce the risk. Provide incentives for cash or advance payments.
(4) To study ways to quickly enhance the liquidity such as asset sales that may not needed, leasing assets to third parties such as buildings, offices, fleet distribution, production machinery, etc., contribution of cashbox shareholders, personnel and investment funds (it will take longer to implement this measure because financial and other data for presentation to potential investors should be prepared).
(5) Conclude Barter agreements with Suppliers / Partners in order to provide them with own products / services in an exchange to theirs.
Internal Organization and Operation
(6) Direct analysis and reporting of all categories of operating expenses of the business in order to immediately delete / cut those that do not add significant value to the customer.
(7) Implementation of energy saving techniques and telecommunications expenses
(8) Reorganization of the operational structure and manpower toward taking more initiative, responsibility and therefore producing more and specific results. For this purpose, you should make better use of existing staff competencies and to develop further through initial education. Conditions today and especially high unemployment, favor the development of structures and mindsets toward high production results.
Utilization of Grants Provided
(9) For item 8 above there are subsidy schemes for Training / education of staff.
(10) Recruitment and personal development.
(11) Energy saving.
Pending the announcement of additional support schemes, companies must gain direct access to information regarding the provisions of these schemes.
Negotiating with Financial Institutions
(12) Prepare a financial plan and contact financial institutions for restructuring of the accounts of the company.
Assessment of viability
(13) Businesses that are not viable or even under bankruptcy without even realizing it should immediately redirect the activities in a timely and efficient way so as not to lose additional funds time and effort.
Marketing / Sales
(14) Direct application of innovative, low cost and effective methods of promoting products and services using digital technology.
(15) Evaluation of the redirection of supply, products and services channels. Possible differentiation of products and services at low or no cost, may create opportunities in new markets.
Specialized Skills
(16) For some of the above, Companies may need specific knowledge and skills required to design and implement the actions. For this purpose you can hire the services of expert advisors based upon the Internal Consultant (Retainer) Scheme according to their needs. So, on one hand Companies will have the expertise and know-how and on the other hand incur relatively low cost because the fees of Advisers will be variable according to business needs and Consultant contribution.
Synergize with Other Entities
(17) Study the possibility of developing partnerships with other businesses to convert fixed costs into variable costs and achieve Economies of Scale.
Yiannakis Mouzouris
B.Sc. Mech. Eng. , M.Sc. Eng. Mgt.
Business Consultant
CONICON LTD
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