It is an open up mystery that the COVID-19 pandemic and the ensuing lockdowns shifted customer conduct on the internet. When the place went into lockdown in March 2020, people increasingly relied on digital platforms for their every day requirements like groceries, schooling, and other essentials.
But what did this suggest for around 60 million of India’s modest and medium companies (SMBs)?
Agile SMBs realised digitisation was a query of survival, and they adopted know-how at a speedy pace. Nevertheless, several some others were being not so blessed.
Modest businesses have discovered, the difficult way, the relevance of 5 key areas of digital transformation.
Taken from SMBStory’s video clip collection Digital Playbook for SMBs, here are the five key small organization thoughts and learnings on how to go electronic.
Use electronic payments to protect cash circulation
The shift to online getting taught all stakeholders in the little companies ecosystem the importance of adopting electronic, contactless payments for little organizations, kiranas, and retailers.
Arguably the most vital component of electronic transformation, digital payments ensure that tiny merchants or kiranas can carry on to acknowledge or deliver dollars and maintain dollars movement in an significantly contactless environment.
The know-how for digitising buys and payments has the probable to fully remodel the way compact organizations run. The digitisation of payments is introducing substantially-desired simplicity, streamlining enterprise processes, lowering timelines, and improving general effectiveness for SMBs.
In a online video job interview, a few primary Indian digital payment option vendors – PayU India, Sarvatra Technologies and PayNearby – spelled out the ways SMBs should get to adopt electronic payments.
Anand Kumar Bajaj, MD and CEO, PayNearby, reported, “Kirana merchants remained open for the duration of the lockdown. There was force from prospects for kiranas to accept electronic payments. Kiranas that have been uncertain about GST before ended up adopting new techniques of transacting on the internet. This new conduct of contactless transactions will come to be deep-rooted.”
Preserve money and reduce loss via electronic accounting
Tiny corporations have ordinarily adopted the route of outsourcing to money companies, choosing CAs for their account entries, or handling accounts on their individual. They sense far more confident when they have immediate manage of the functions, and frequently undermine or are sceptical of adopting digital accounting methods.
With the burden of running costs, payment cycle, holding a observe of inventory, tax, GST, and additional, it poses a mental and monetary problem to regulate anything manually. It frequently prospects to mistaken entries and recurring losses – a thing compact organizations cannot afford in the latest circumstance.
For the duration of a video clip interaction, Tejas Goenka from Tally Answers, a single of India’s largest Company Source Planning providers, and Sumit Agarwal from Vyapar talked about how tiny organizations can use digital accounting options and help you save money.
However, it is less difficult claimed than accomplished. “Technology generally scares little company proprietors who have to have hand-holding to go the electronic way,” explained Sumit Agarwal, Founder of Vyapar. “They are frightened of managing their accounts digitally. They fear breaching private knowledge, managing the software package, and other items that call for schooling and lessons,” he explained.
Provide using Direct-to-Customer (D2C) approach
In a classic small business model, wholesalers, distributors and merchants are current amongst the customer and the vendor. In the D2C design, these middlemen are removed and the vendor can directly market to the customer via their site, on-line shops or offline merchants.
In the wake of the COVID-19 pandemic, this product poses a massive prospect for small firms to access clients directly, reduce bills arising from payments to middlemen and distributors, and go on the charge-benefit to customers.
India has seen a increase in the quantity of D2C brand names across categories these kinds of as FMCG, clothing, and purchaser electronics, between other folks, with brand names these kinds of as MamaEarth, Mom’s Co, The Souled Keep, Wakefit, and many much more.
In a virtual interview, Karan Chowdhary of WOW Skin Science, Deep Lalvani of Ador Multiproducts and Yashas Alur of Everpret came together to explain D2C and why it is in this article to keep.
Yashas Alur, Founder of Everpret, a women’s-targeted accessories brand name, said, “Setting up a D2C business enterprise includes a whole lot of ease and ease and comfort, as opposed to environment up an offline enterprise. For an offline retailer, several features have to be taken care of — offer chain, logistics, distributors, distributors, and so on.”
Migrate to cloud options to survive
SMBs are minimising expenditures and staying afloat by adopting technologies these kinds of as cloud, electronic payments, ecommerce, electronic bookkeeping, CRM, automation, etc, speedily.
The adoption of cloud technologies, in certain, is anticipated to substantially effects expense-slicing, and perform a part in analyzing the survival of compact businesses.
Cloud technological know-how will allow alternatives these as CRM, ERP, web servers, company apps, IoT answers and many others, to be hosted on the web by a service service provider.
In a video interaction, Harish Vellat, Place Head, Tiny, Medium, and Company Company, Microsoft India, reported, “SMBs that adopted technological know-how such as cloud answers had it improved off than SMBs that did not. Only a compact phase of SMBs understood what it took to collaborate, hook up, and communicate.”
“Small corporations that responded rapid plenty of have been equipped to migrate to remote functioning swiftly, and resume small business without having also a great deal disruption,” he included.
Smaller businesses that did not react swiftly saw their problems accentuate. These SMBs, which did not have cloud-based mostly collaborative applications and techniques to accessibility prevalent apps, and uncovered it extra challenging to do the job remotely, according to Harish.
Pick simple, effortless-to-use digital solutions
Simplicity and chopping down on new attributes appears counterintuitive for a company attempting to acquire small organization users at scale. But Indian tiny companies favor simple and straightforward-to-use answers.
Quite a few little firms are inclined to consider making use of digital solutions but they can be confused with way too quite a few features or sophisticated interfaces.
A uncomplicated, intuitive application that operates on a basic smartphone is far better for a tiny company than a weighty software software that necessitates a significant-end desktop to operate.
In a digital interview, Hiren Shah, Founder and Chairman, Vertoz, and Logesh Velusamy, Founder and CEO, Effitrac defined how this sort of very simple solutions make more sense for compact firms and why they need to undertake digital goods that are uncomplicated to use.
Logesh stated, “Usability and simplicity are crucial to support customers comprehend a electronic answer. Further, SMBs are commonly not employed to working their organization digitally, and so, they will not undertake a tech answer that features tiny to no guidance and client company at the ground amount.”