6 min read
The opinions of the employees of You are personal.
By: Fil Castro.
Being an entrepreneur in Mexico was a challenge even before the COVID-19 pandemic. According to the results of the 2019 economic censuses, the life expectancy of businesses in Mexico is 7.8 years. Factors such as difficult access to credit for working capital, financial bottlenecks in acquiring and implementing technology, and issues such as uncertainty have already got business owners into trouble.
With the arrival of SARS-CoV-2 on Mexican territory, the situation worsened and in 2020 the scenario became apocalyptic: empty streets, closed shops and insecurity could be touched with your fingers. And 2021 still doesn’t seem like the year of the reversal.
In the current context, it is really valuable to assume that the new normal will remain in place for a while, better to adapt and evolve than closing the curtain on your business. And once you’ve decided to face this new context and keep working, these three business tips will be of great use to you:
Business tip 1: prepare to make more informed decisions
The quarantine, the healthy distance and the contactless showed that many of the problems that arise in the daily life of an SME have to do with the lack of a business plan with clear destinations and routes based on the current situation. In fact, a vast majority of business owners lack the tools to train because of lack of time or resources, or when they fail, because they cannot find the best option to provide that support.
Image: Vladislav Babienko via Unsplash
The good news is that one of the positive practices of “staying home” has been the ability to access Webinars Y. Master class specialized in managing and running your business. Formats like the blog and the podcast also made the guide and expertise of men and women specialists in corporate management. Therefore, long distances and traffic are not a restriction for your business training.
Business tip 2: implement technology in your company
One of the biggest damage the old school has done to new generations of entrepreneurs is believing that technology is only for big companies. Not correct. The pandemic even accelerated the digital transformation in all industries and today practically every company that wants to survive is forced to implement technological solutions. But where can SMEs start?
My first suggestion is to consider an enterprise resource planning (ERP) solution for fixed costs that will help you better manage your business. It is a set of information systems that enable the integration of certain processes in a company, especially those that have to do with production, logistics, inventory, shipping and accounting. The more control you have over the business, the better the existing resources of the business are being used, and the more information you have about it, the more certain you know how profitable it is. Also consider other solutions, e.g. B. a CRM solution for customer service and management as well as a powerful strategy for digital marketing.
Expensive? Not necessarily. Indeed there are options On demand – Procurement of the modules that you need for the time you need – and solutions that are exclusively tailored to the needs of SMEs. In the cloud, there are ERP options for less than 300 pesos per month, which will meet most needs with updated information in real time.
Business Tip 3: Get a Working Capital Credit
The lack of access to timely credit on favorable terms is one of the main factors holding back SMEs in Mexico, despite the fact that they account for 74% of jobs. With or without a pandemic, access to a traditional bank loan confronts SMB owners with complicated procedures, the fear of having some of their assets pledged, and waiting weeks or sometimes months with very little likelihood for approval.
However, history has changed and today, thanks to digital banking, there are innovative alternatives that use powerful algorithms to calculate the applicant’s payment capacity in less than 10 minutes and provide loans of up to 2 million for online working capital. Gone are the old practices of not giving SMEs access to credit.
If you carefully analyze these three business tips, you will find that with training and support, better technology geared towards solving your company’s specific needs, and a business loan, you can do better and grow your business. Why? Simple: Because you can allocate every peso smarter without running into debt or jeopardizing your future.
We know these are challenging times for everyone. However, we believe that SMEs have the opportunity to reactivate the economy, create new and better jobs and lead Mexico to a healthy recovery.