Survival strategies for small businesses during lockdown

Posted in Business Loan By Bajaj Markets - May 14,2020
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Following the unprecedented imposition of a worldwide lockdown because of the pandemic, industry is in a precarious state all over the world. India is no stranger to the economic effects of pandemic. In FY 2020-21, India’s growth rate is predicted to slump to 2% as opposed to the earlier prediction of 4.7%-5.2% by rating agency ICRA.

In such times, businesses are worried about shutdown of production and supply chains. Moreover, small businesses have more reasons to worry about as they usually don’t have a lot of cash reserves to sustain this indefinite period. However, it is interesting to note that despite the last quarter of FY 19-20 being spent in lockdown, the total sanctioned amount for Pradhan Mantri Mudra Yojana loans was more than that of the previous financial year. The PMMY is a scheme that can be of great help to small businesses not just to grow, but also in times of need.

If yours is a startup, you can apply the following measures in an attempt to keep your businesses alive and come out of this lockdown alive.

Tracking of expenses

This is something that can also be done when the situation becomes better. It is imperative to carry out a detailed assessment of your fixed and variable expenses along with actual revenue figures. It will give you a clear idea of where your startup stands at a financial level and help you plan for the future accordingly.

Feasibility evaluation

The unfortunate crisis hit market is currently in doldrums and seems to be getting worse and worse with each passing week. Although it is difficult and might sound demoralising to do so, it is crucial to evaluate your business model at this point and relook at your projected revenues and costs. Not just this, you also need to be alert about cash flow and financial figures at present. Calculate your bad debts and losses. It will make calculation of opportunities, exit plans, and workarounds easier.

Be prepared for the future

None of us know how long the lockdown is going to last. You need to plan for worst-case scenarios. If it continues for another 9 months to a year, you will have to reformulate your strategy, cut down on variable expenses, rework fixed expenses, and focus on the essentials. Look at marketing costs. You might need to let some employees go or cut their salaries, but make decisions with compassion. Communicate with them and share problems.

Be patient about investments

Capital is probably your biggest worry right now. You might experience a fall in funding for a short time. However, look at previous epidemics and recessions. Economies have always bounced back. The only thing you need to do is have patience. Approach existing investors and secure added funding, you are more likely to get your job done there. For your essential needs, you can always turn to the resourceful government scheme, mudra scheme or PMMY. Check Mudra loan eligibility now only at Finserv MARKETS.

Maintain communication with customers

Your customers are also facing their own problems and trying to survive the unfortunate situation. They are trying their best to empathise with and help people around them. If you are honest with them, they could understand your predicament and even trust you better.

Team building

Honesty is key in case of all your stakeholders. Your team is dependent on you and you are dependent on them. It is important to lift their spirits and keep them assured and motivated through regular video calls and interactions. Even while working remotely, they should be able to feel the ethos of a family that is fighting the situation together.

Stakeholder communication

Your investors know best. Keep in touch with them, and ask them for advice on handling your other stakeholders. Have an open conversation with them and discuss the future. Show empathy, because only then can you expect empathy.

Apply for PMMY

The Pradhan Mantri Mudra Yojana can be a blessing in such a time. This scheme was announced in 2015 for providing small loans to SMEs through NBFCs (Non Banking Financial Companies). You can avail micro-finance, refinancing, and additional facilities such as interest discounts for women, etc.


It is a precarious time for everyone, but it surely isn’t the end of the world. Remember that we as a country had weathered the last recession (in 2008) better than most others. We will emerge strong out of this one as well. Secure your resources early on and stay assured in the later stages as well. PMMY is not your only option for loans. You can even opt for business loan, available on Finserv MARKETS, you can avail upto Rs. 30 Lakhs of funds in just 3 minutes! As a small business, you can utilize this for a variety of purposes which will keep your business afloat and get it up and running when required. The entire process is online and your product can even be customized as per your needs. Plus, there is no collateral required and repayment tenures are also flexible, ranging from 12 to 60 months, which is a lifesaver in tough times like these. With this loan, you can stay rest assured about the future of your business.
Also make sure that you are aware about various components of GST beforehand, so that you can manage your finances and business wisely while paying taxes on time.

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