An unprecedented lockdown followed by WFH, limited consumption and eventually slow growth have affected big and small business post pandemic. Though bigger companies have been able to invest in digital marketing domains and scale up functions, still some small and medium size companies and distributors are contemplating evolving and exploring opportunities to increase strategic partnerships and thus trying to evolve in the digital space.
Every business big or small could consider the below steps to steer through challenging times. These steps, if followed properly can definitely act as a yardstick and ensure that business will sail through toughest time. Not only post pandemic corrections but in every difficult market situation, this will work for you.
Excessive credit exposure: We advise that proper risk assessment to be done while extending excessive credit risk. A lot of small business houses have substantially suffered on accounts of delayed payments and hence we advise invoice discounting and other measures to be taken into consideration along with the credentials of customers.
Working Capital limits: Working capital works as the lubricant of your business, the smother it is, the better it will be for your business. For Instance: If we work around an arrangement of 10 days of working capital cycle per transaction then it gives us an opportunity of 3 business cycles in a month, thus giving us the opportunity to trade in higher volumes per month. Alternatively if 30 days credit is given to the customer then the same leads to only one cycles further stressing the business cycle
If you sell on immediate payment terms, and do three cycles successfully, you can actually earn 150% more, even if you part of 50% of profit for cash discount.
It may also be noted that when you do higher volume of business per period of time, you end up getting better cost of acquisition and do optimum utilization of resources, leads and better cost of operations leading to better bottom-line for the company and business.
Whether it’s a manufacturer or a distributor, volume attracts cheaper cost of acquisition of resources or input.
Product Offerings: There also needs to be thought & ever evolving innovation in your products and more cost efficiency in your offering. Product development is another key to improve your business as with this customers get attracted and would prefer your offering.
Marketing: Last but not the least, in these difficult times of pandemic and post pandemic, every company is trying to reduce the cost and hence is pruning on marketing expenses first. Though marketing is the key to more and better business and clients, companies normally refraining themselves from marketing budgets.
Apart from digital exposure from Allykart, the companies should also look at working around brand building and being active on digital social media platforms for active customer engagement.
Controlling avoidable costs: With an aim to be sensitive towards cost optimization and best resource utilization, it should be your endeavor to cut down on your unnecessary expenses and explore long term sustainable methods to source important non negotiable things at best prices.
Unavoidable expenses and marketing budgets like stationary for office, corporate gifting, CSR, trade schemes actually help improve your business. If we can source them efficiently and smartly, we can add both more top line and bottom line as well.
Allykart.com can actually bridge the digital gap between the manufacturer/distributor and the end customer.
It is easy to consult and source every office product requirement. Products for trade scheme, client gifting, distributor schemes, internal stationary requirement CSR scheme etc. can be addressed very efficiently here through its seamless distribution and delivery mechanism.
