SMEs are the most vulnerable when it comes to the business impact of the COVID-19. As of April 2019, there were an approximate of 220,000 SMEs in Singapore, with many businesses closing down its doors as they cannot not keep up with the unprecedented pandemic of this scale. However, there are still many who are able to utilize the leeway that unknowingly comes along with this crisis.
Some business owners take the opportunity to identify the weaknesses in their core business and figure out solutions in order to adapt to the COVID-19 pandemic which may still hold an advantage for their company in the long run, well after the pandemic has ended. Constantly looking for ways to innovate your business is pre-emptively the best solution to solving problems that you did not know existed.
The fact that most people are confined to their own homes during the critical point of the outbreak, a lot of business owners are forced to turn to digital solutions to help mitigate the financial damages that COVID-19 brings which sequentially props up new opportunities for other tech industries to take the forefront towards innovation.
You might think that starting a business during a global pandemic might be a bad idea, right? However, there are many instances of entrepreneurs displaying their pragmatism by turning over or even saving businesses from going under by simply using digital solutions in areas they see fit.
If you wish to start a new business during this period, it may be a good idea to take over an existing business if you think it could be manageable. While connecting with potential partners might be risky, you can use multiple tools available to determine whether a particular business is profitable enough to invest your time and money in. Even if it may cost a significant amount, getting the right information is always key in mapping out the future growth of your potential business.
It would also apply the other way around if you are thinking of selling your business, or certain assets, or shares in your company, so that you can get some money out of your struggling business.
There are other means to acquire buyers and sellers of businesses, assets and/or shares in a company besides word of mouth from the community. With the advancement of the internet, it is now much easier to connect to potential buyers that are looking to take over a business to sellers as there are now several marketplace platforms that authorise sellers to list their business for sale or even connect businesses globally.
Despite your situation, it is always important to do some due diligence on the individual/company that you are dealing with. Set foot into a formal sale and purchase agreement to clarify and solidify the terms of the transaction. This will help to facilitate a smooth deal and also prevent any issues and confusion that might emerge from any misinterpretation.
In retrospect, business owners should always take calculated risks when assessing the optimal action to take to further their business goals as they should always take into account unforeseeable events that might hinder or even halt the company’s progress before it even starts. Hence, innovation and digitization are a must for any businesses to adopt this modern economic landscape.