“TROUBLES” OF BUSINESSMAN & WAY TO OVERCOME WITH
OPTIMISM – POST LOCKDOWN AND GLOOM :-
First
time in the history of India , a crisis with intense difficulty has affected
the business to such extent that the revenues dropped to zero in most of the
small and medium entities and may have raised questions of their future
survival and the correctness of there going concern assumption in the coming
days.
The “TROUBLES” faced by the business community are listed below:-
1.
No Revenue Generation.
2. Drainage Of Cash In Hand/ Cash At Bank.
3. No Sales / Services Rendered Post Lockdown.
4. Salary Payout Continues Despite No Cash Inflows.
5.
Continuation
Of Fixed Costs Like:-
·
Fixed Rentals
·
Tds
·
Wages
·
Gst
·
Interest On Loans
·
Repayment Of Emi
·
Internet Expenses
·
Telephone Expenses
·
Electricity, Fuel Etc
6.
Working Capital Drainage.
7. Limitations Of Work From Home Environment
8. Many More reasons.
In such a
time of intense difficulty, business owners have continued to support the government’s
decisions and shown the optimistic approach towards life and belief in
"THEORY OF CHANGES" with assumption that "these days will pass
on sooner or later" And not to forget words of Oscar Wilde :- “we all are in the gutter but some of us are
looking at the stars”. So watch the stars and see yourself running with them”
In all this gloom, Lets
make the best utilization of the time and think from MACRO view " How to overcome the situation?"
Planning
and steps to be analysed during lock down by every Businessman:
1.
“FOCUS ON EXPANSION & QUALITY “ Expanding
the customer base and Improving the quality of service or goods
2.
“MONITOR THE MANPOWER” Be in regular touch with
the Employees, customers, clients, suppliers, during the lock down period.
3.
“BANK FUNDING ASSISTANCE” Talk with the banks or financial institutions
for short term working capital loan/ or cash credit or loan against FDs to
recapitalize yourself and to cope up with working capital drainage issues please
remember talking a loan also brings financial discipline.
4.
“BUDGETING & COST CONTROL”
Do a
detailed budgeting of anticipated inflows and outflows for 2020-21 and control
the unnecessary or avoidable expenses and defer it for future years.
5.
“AVOIDANCE OF CAPITAL EXPENDITURE” Avoid making the huge
capital expenditures on fixed assets, repairs and maintenance etc if it does
not affect the business continuity and can defer it to future years.
6.
“NEGOTIATING EXISTING AND NEW CONTRACTS” Talk with employees, contractors, clients
etc for contract renewal without escalation
of contract amount or any other possible negotiations.
7.
“REMINDER FOR RELEASE OF BLOCK PAYMENTS” Make list of Debtors and
contact them for release of payments.
8.
“E- MARKETING & E- BUSINESS MODEL” shifting to E- Marketing
and E- Business: Sharing the product or services on e- commerce platform.
9.
“INCLUDING SUPPORT SERVICE” Improving the mode of service by including Free
Home Delivery, Free pick up, drop etc if feasible.
10. “ROADMAP FOR CASH FLOWS” Make a roadmap in advance for use of cash flows
during the year and make a projection for the same.
11.
“AVAILMENT GOVT RELIEF PACKAGES” keeping close eyes on every information from
government on relief packages for business announced by the government.
12. “DOING EFFICIENT & SYSTEMATIC TAX PLANNING” Doing a good tax planning for the year with prospective investment
details to lower the TAX impact at year end.
13. “ SMALL FREQUENT SAVINGS” In
scarcity of cash inflows, doing proper analysis for savings in small frequent
lots as its always advisable to save something than not saving anything at year
end.
14. “ STRIVE HARD TO STAY HEALTHY " It is the health that is the real
wealth and not the pieces of gold or silver. So stay healthy and stay safe.
Conclusion :-
I Urge All Businessman:"
Stop Being Afraid Of What Could Go Wrong And Think Of What Could Go Right"
"Choose Optimism, It Feels
Better"
ARTICLE BY
CA. JATIN
RATHOR
(MOB
9595121481)
(E-MAIL: cajatinrathor@gmail.com)
Please note
:
1.
The
above article is mere expression of opinion of the writer and does not in any
way bind the writer in any mode or manner whatsoever.
2.
For any queries you can post a mail to the
writer in the above mentioned email id.
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