All companies worldwide, including those operating in Mexico, had economic effects, to a greater or lesser extent, due to the Covid-19 pandemic. According to INEGI, in 2019 there were 4.86 million micro, small and medium-sized establishments, while as of July 2021 there were 4.46 million of this type of business, that is, 8.2% less.
These data show that, although there was a significant closure of micro, small and medium-sized companies (just over 2.5 million in 2020 and 2021), new businesses were also created (close to 1.8 million).
According to the third edition of the ESurvey on the Impact Generated by Covid-19 on Companies (ECOVID-IE), almost 85.5% of the companies that survived had a drop in their income (73.8%) or lower demand for their products (50.2%).
And although economic activity has gradually increased, a report on small businesses, published by the World Bank and the Organization for Economic Co-operation and Development (OECD) shows that over 60% of SMEs globally have made at least one change to the way they do businessin how they interact with their customers or how they use digital tools to survive.
Given this scenario, it is important to analyze how to resume or improve the work dynamics that businesses had before the health contingency, which is why Provident, a leader in personal home loans in Mexico, suggests:
Check if your business is still attractive to your customers:You have to ask yourself if there will be a demand for the products or services you offer, or if you will have to make changes or renovations to attract more customers in the current context.
Analyze the financial needs of your business:You have to ask yourself if the business generates the necessary profits or if it requires some additional investment to make changes and make it more attractive to customers.
If your business requires financing, consider these factors.
Establish a financial plan:Make a plan in which you indicate priorities, deadlines and objectives to meet, to determine the amount or amount of money that your business will require to adjust to the new reality.
Go to formal institutions:Approach companies that are duly established to avoid being a victim of fraud. These types of companies have transparent processes and have digital tools that help users to be safe in the current context.
Compare credit offer:Find out about the financing options available, according to the characteristics and needs of your business, and prepare a list of pros and cons to help you decide which is the best option for you, not only to achieve your goals but also to prevent your credit history from being affected.
Following these steps will help you make better decisions that benefit your business and your customers.
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