SMEs Encouraged to Identify Sweet Spots & Be Proactive in Weathering COVID-19

Over 100 participants joined in the 90 minute-long webinar, hosted by the JMMB Group on Wednesday, March 25, 2020, via its social media channels, entitled, “Managing Your Cash Flow as an SME During COVID-19.” This online event comes in response to the potential far-reaching impact of this pandemic on the business community, especially SMEs.

 

Experts in the form of Shani Duncan-Falconer, JMMB Group SME Resource Centre Lead and Lauri-Ann Ainsworth, CEO, Branson Centre of Entrepreneurship Caribbean, shared practical pointers with the online audience; in addition to addressing a range of questions, throughout the session, with the assistance of moderator and JMMB Group’s chief marketing officer, Kerry-Ann Stimpson.

 

Practical Pointers for SMEs to Manage Cash Flow

Ainsworth in opening the discussions, highlighted the need for entrepreneurs to be both flexible and creative in identifying financial solutions and adapting their offerings based on their unique circumstances.  Among the key points raised, during the webinar, was to “remain relevant by shifting your message to address the needs of your clients at this time.” She noted that SMEs should examine how they can tailor their message to remain top of mind and pertinent to their clients in these challenging time, using the example of online courses to illustrate her point, she said courses could be offered to address the new reality of the remote working environment. The Branson Centre CEO also outlined that in a bid to generate revenue, SMEs should look at sweet spots in the market by tapping new segments, with their existing offerings or by making tweaks to their current offerings. With the online space becoming increasingly popular for many services that were previously offered face-to-face, Ainsworth, noted that COVID-19 can serve as an opportunity for SMEs to examine how to also augment their existing offerings and explore providing online services. She highlighted that the entertainment fraternity which has also suffered significantly from the COVID-19 pandemic, as a result of the restrictions being put in place to manage the spread of the disease, that virtual parties may become a viable alternative in the near term and may also become a part of the entertainment landscape; she also pointed to the shift taking place with the uptick in online medical consultations.

Noting that some SMEs may have to pivot completely or partially, by changing their business model or adding a new revenue stream, so that they can weather the unpredictable effects of COVID-19. “This is the most risky approach, especially as no one knows how long we will be affected by COVID-19,” cautioned Lauri-Ann Ainsworth. In giving insight on how SMEs can take this route, while minimizing the reputational and financial risks she added, “Speak to your clients to see what are some of the other pain points that you can address,” then use the relevant skills and expertise that you have to serve these clients.

In underscoring the need to pivot, Shani Duncan-Falconer outlined  entrepreneurs can also “look at (their)businesses for any underutilized assets – whether it is a physical one or your skills and expertise  - and see if there are new ways that you can use these (to generate revenue).”

Additionally, Duncan-Falconer urged SMEs to have a clear idea of their break-even point, which is the minimum level of operation in order to cover all expenses. This, she said is critical in helping them to revise their strategy and projections, in light of the uncertainty in the current climate.  She further cautioned SMEs about taking on additional debt at this time, without the necessary structures in place to generate revenue and ensure that the business has sufficient liquidity. Instead she shares several options such as: equity financing (where possible); or grants and other programmes such as the COVID-19 Allocation of Resources for Employees (CARE) programme, that employer can apply for on behalf of their employees, if they are a part of the hotel, attraction, tour, and restaurant industries.

Acknowledging that the pandemic has created a new challenge for SMEs, head honcho of the JMMB SME Resource Centre, stressed the resilience of entrepreneurs and implored them to be proactive, in reaching out to their financial institutions and other creditors for assistance; in the form or moratoriums, reduced interest rates, payment holidays or other payment arrangements; outlining the partnership approach being taken by financial institutions on a case-by-case basis is encouraging.

Duncan-Falcolner in noting, “cash is king” told SMEs to actively collect from their debtors, as soon as possible in a bid to maintain a consistent cash flow, by even offering discounts for shorter payment cycles.

Both experts also charged SMEs to forge synergies to reduce their costs and expand their market, in order to better manage their cash flow.

Positive Feedback from SMEs

In the midst of the engaging question and answer segment, several participants also gave kudos to JMMB Group for hosting the event.  One such participant, CEO of Msquared, an advertising agency, Mike Kelly, lauded JMMB for its efforts in organizing the timely online forum for SMEs, stating, “Truly a helpful webinar. Thank you. I hope you have planned more.” He also said that the event provided a ‘haven’ to share in a non-judgmental and open way with fellow SMEs who understand firsthand, the anxieties and challenges being faced at this time, even as they work towards solutions.”
 

Kerry-Ann Stimpson indicated that based on the positive feedback from this first forum with SMEs, the company is looking to continue the online discussions, addressing other critical areas. Adding, “Through this series of webinars we want to give hope, lend expertise and share solutions that will assist our clients and the wider to navigate the crisis, and will explore this as an avenue to address a cross-section of topical issues, on an ongoing basis.”

This webinar also serves as part of JMMB Group’s ongoing commitment to serve SMEs, and underscores the role of JMMB Group’s SME Resource Centre, in providing support for this sector by filling gaps that are not currently being addressed in the market. The online event is therefore aimed at encouraging and empowering SMEs to be more intentional about their business success; take actionable steps; identify best practices and resources, if they desire; and create or revise a plan that will guide them in putting the necessary infrastructure, policies, systems and expertise in place, for their sustainability and growth.   

This initiative is also in line with the company’s financial inclusion and integrated financial partnership approach, which is designed to assist individuals and businesses to achieve their goals. As part of its strategy, the JMMB Group intends to add value to its SME clients, through the provision of the financial partnership, resources, innovative financial solutions and a network, throughout these businesses’ life cycles; thereby, providing necessary support for growth and filling the gaps that currently exist in the financial sector.