6 min read
This article has been translated from our Spanish edition using AI technologies. Errors can occur due to this process.
The opinions expressed by the entrepreneur's contributors are their own.
By: Fil Castro.
Being an entrepreneur was a challenge in Mexico 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 insecurity 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 stick around 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
Quarantine, healthy distance and contactless contacts have shown 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 goals 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 “stay at home” practices has been the ability to access webinars and masterclasses that specialize in managing and running your business. Formats such as the blog and podcast also made the guidance and expertise of men and women who specialize in business management available to all. Therefore, long distances and traffic are not a limitation 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 their belief that technology is only for big companies. Not correct. The pandemic even accelerated the digital transformation in all industries and today virtually 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 related to 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 will 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. In fact, there are on-demand options – contracting out the modules you need for the time you specify – and solutions that are solely tailored to the needs of SMBs. In the cloud, there are ERP options for less than 300 pesos per month that 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 leaving some of their assets as pledged, and waiting weeks or sometimes months with very little chance 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 grant loans up to 2 million for online working capital. Gone are the old practices that did not give SMEs access to credit.
If you carefully analyze these three business tips, you will find that with training and support, better technology geared to 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 putting your future at risk.
We know these are challenging times for everyone. However, we believe that there are opportunities for SMEs to reactivate the economy, create new and better jobs and lead Mexico to a healthy recovery.