SME-Economy in times of coronavirus: Adaptability is the New Normal
Without any doubt, the majority of small businesses plunged due to government restrictions during the lockdown. Bike mechanics were closed. There were significantly fewer taxi drivers and souvenir shops lost all their customers. Still the whole world is fighting with the pandemic and no one really knows when this will end.
However, small businesses can be the driver of economic growth in times of a crisis.
Because they quickly adapt to the new reality, see the crisis as an opportunity and try to make the best out of a difficult situation.
How does it work?
Let’s take a look at a simple example. At the beginning of the year when the pandemic had just started, the demand for medical masks skyrocketed. They cost a fortune or were no longer available for purchase.
A big textile plant is in a vulnerable position in this case. They require their management’s decision to make new masks and then a lot of approvals. After that comes buying the supplies, fixing the machinery, employee training, a couple of days or weeks of sleepless nights for the marketing department and signing new contracts with partners. A very lengthy process.
Now let’s take a look at a small company that makes unique hand-made t-shirts or accessories. They are more agile, they just need to use their skills on a new product, that’s it. What is left is to call the nearby shops and offer their products. In addition to that, such businesses can do not just a standard mask, but a fancy accessory.
It basically works for every kind of business. For instance, a large food retailer will try to organise delivery. They will hire a hundred delivery drivers, reassess the costs, make and distribute the uniforms, invest in promoting the new service, and develop and implement an IT system to manage all these processes. When the pandemic slows down, the company will have to change the processes again in the same way. Meanwhile, a local bakery will need just a phone, good mood and a quick person who can deliver the orders in the neighbourhood.
Is it time for IT solutions?
Yes, it is. But businesses of different sizes have different IT needs. As we said already, large companies take a long time to adapt and this includes technological infrastructures. While small businesses can really benefit from a laser-focused investment on IT solutions, tailored on their needs and scale.
Also, small businesses always have to deal with larger players: banks, state taxation offices, big suppliers. Everyone suffers when they get disorganised. For example, it is only possible to receive some bank documents in a physical office, but it is closed. Employees moved to remote work, and that slowed down their payments to counterparties. There can be a hundred similar situations.
Managing finances becomes a nightmare in this situation and takes a lot of time. Classical banking is among those big businesses which cannot quickly adapt to a different scenario, also because the banking industry is heavily regulated.
Entrepreneurs need a new partner in this tough new reality, and there is this partner. Finom is entering the market. It is a smart new generation financial service, created to simplify the lives of those who are the backbone of Europe’s economy. In our app we blend together accounting, invoicing, and banking.
Our high technology infrastructure allows quick and easy finance management, and it cannot make human mistakes. This computer program won’t forget anything, won’t make a mistake or close the office at the end of the day.
Finom creates a notification about incoming and outgoing payments. For example, it will remind a forgetful counterparty to make a payment and won’t let an entrepreneur miss their own time to pay. Besides, the program records all transactions, even the ones made through different banks.
Moreover, Finom solutions allow getting income statements and all kinds of balance reports. For example, the program can filter all transactions from one project and briefly forecast the profitability of a similar one. Such fast analysis will be the biggest competitive advantage as in larger businesses they will have to hire dozens of specialists for the same task.
Quickly adapting to the new reality will become the key to success in business in the coming years. The opportunity to make a financial analysis in seconds will prevent entrepreneurs from making wrong business decisions.