The role of advisors and consultants as guiding lights towards business growth especially in the SME sector is fast gaining prominence. If you are a business owner who has never really considered consulting an external advisor, there’s no better time than now to do so.
The perspective of an advisor can aid small businesses in overcoming challenges presented by the current scenario, improving processes, managing supply chain risk and disruption, stabilizing cash flow, and more. In 2020, many businesses even turned to advisors for enhancing HR practices and elevating the staff morale. Backed by decades of experience, advisors are armed to offer the right strategy consulting. Here’s how SME entrepreneurs can maintain a steady cash flow and achieve business growth and transformation in today’s turbulent times by taking advantage of business consulting:
1) Undertake scenario planning
The financing options you could bank on previously, or even last year, may not be available to you for now. Bearing this in mind, consult with an advisor and undertake scenario planning to gain an in-depth understanding of the amount of cash you’re likely to need, and for how long. An advisor’s knowledge of financing options and partners can help you engage with financing partners to ensure a line of credit remains open to you. Alternatively, management consulting can help you identify newer financing options.
2) Think like a CFO, act like a proprietor
Usually, in businesses, it is customer service requirements and operational capabilities that dictate inventory levels, and not financial constraints. But it’s a different scenario today. While supply chain managers handle the operations part to ensure minimal disruption and inventory shortage, an advisor can show you how you can take decisions like a CFO and grow your revenue.
3) Relook at capital investment plans
To grow your business further, previously laid-out plans may to be relooked. A business advisor will ask the right questions – are there capital investments that can be put on hold till cash flow stabilizes? Which investments need a second look and potentially, be reconsidered? Advisors are skilled in working with business owners and helping them make tough decisions. Their recommendations could the reason your organization survives, or even thrives, in uncertain times.
4) Encourage early payments
One way to maintain cash flow is to encourage your customers and clients to pay early. A discussion with a management advisor or strategy consultant can lead to ways to make this happen when the other party may also be facing various issues. If feasible, you could incentivize them by providing discounts within your capacity, or allowing payments in instalments.
5) Negotiate fixed expenses
Business Advisors are suited to help you revaluate fixed expenses to find avenues to increase savings. Their rich experience will aid you in negotiating with vendors for waivers, discounts, payment deference, and so on.
Advisors may not be on your payroll but they are just as invested in your success as your core team. The Wadhwani Advantage program empowers businesses with capabilities to maximize their growth potential. The program also provides businesses with access to dedicated advisors who are uniquely positioned to understand the business challenges and, therefore, are a powerful check on the business health.
Take advantage and apply to be a part of the ‘no fees, no equity’ program today:
(Businesses with INR 25 Cr+ revenue and employee strength ≥ 100, intent to grow 10x and a commitment to learn can apply)