These Are 5 Coping Strategies That Businesses Need To Pay Attention To During The COVID-19 Outbreak

Illustration. (Photo: Unsplash)

JAKARTA - It is undeniable that the COVID-19 outbreak has had a large enough impact on the Indonesian economy, especially for Micro, Small and Medium Enterprises (MSMEs). Chairman of the Regional Executive Board (BPD) of the Indonesian Young Entrepreneurs Association (HIPMI) Afifuddin Suhaeli Kalla, estimates that entrepreneurs in every sector have suffered losses of up to 20 percent since the first case of positive victims of COVID-19 in Indonesia.

Well, for business people, to minimize the losses that occur, it's good to consider some strategies so that your business continues to run well during the COVID-19 outbreak:

1. Check your financial condition.

No one can say for sure when this COVID-19 outbreak will end. Do an in-depth examination of the financial condition of your business. The thing that you need to confirm first is the liquidity position of your business. Liquidity is a number of funds or liquid assets that you can quickly use to pay short-term obligations, including for purposes of emergencies (emergency funds). You have to determine how much liquidity you have and how long that liquidity can support your business.

2. Check the status of assets and debts.

Under these conditions, you will definitely measure your business ability to withstand difficult conditions. Make a breakdown that includes the amount of assets and the amount you owe. Then, subtract the amount of assets you owe. That way, you can project the continuity of your business. Keep in mind that one of the government's support for MSMEs at this time is a loan restructuring program to help alleviate the impact of the COVID-19 outbreak on your business. This can be a solution if the business's financial condition is experiencing significant disruption.

3. Create a new business plan.

As a business actor, you must always be able to anticipate and adapt to changes or risks that may occur in your business. After you can project the continuity of your business. Create a new business plan that contains a marketing strategy, distribution strategy, capital system and spending patterns. That way, you can increase your business ability to survive when financial conditions are tough. You can try implementing digital marketing strategies to save on promotional budgets and distribution strategies to expand your business reach.

4. Record spending patterns.

Expenditures themselves are divided into 4 posts, namely primary related to operational costs, obligations related to workers' wages or salaries, secondary, and investment. Mark some secondary expenditures and divert them for additional capital or investment.

5. Perform risk management.

In order to formulate a strategy for dealing with potential losses that may occur due to business risks, you must first analyze what risks may occur to your business. Several risk management strategies include: taking responsibility for the losses that may be caused by a risk, avoiding risks, reducing potential risks and finally transferring risk management and losses that may arise to second parties.

In line with this, Musi Samosir, Chief Risk Officer of Adira Insurance, said, in unusual conditions like today, review the conditions of your business activities and if necessary, make changes to adapt to environmental conditions including by minimizing expenses.

"In addition, to be more secure and calm, check the insurance protection of valuable assets, including your place of business. By insuring your valuable assets, you can mitigate potential losses that may arise if something untoward happens," he explained.