This pandemic is unlike anything we have seen or experienced. People might say that there have been slowdowns in the past – in 2016, 2008 and 2002 and go back a little further. “But, please understand that this kind of total lockdown and the profound impact it has on business at all levels have never been seen before, as it’s being discovered by countries across the world. So, don’t live in denial,” cautions C. Balagopal, mentor, entrepreneur and investor.
“The damage to supply chains is deep and brutal and will take a long time to repair. This may extend to at least the rest of the current financial year, which is for another 12 months,” he adds.
So, in his opinion, the immediate focus should be on keeping one’s business alive. Focus on key tasks such as collecting receivables, renegotiating payables and reducing outflows, talking to the bank and getting additional credit facilities, communicating with your employees and explaining the position to them, ensuring them that for the next two to three months you would pay them so that they would be able to meet their home necessities as well as EMI commitments. Try to come to an arrangement where you are able to at least pay a portion of their wages or salaries till business returns to normal.
