What if you have adequate stock and still don’t sell? What creates such a scenario?
This situation mainly arises when there is a high supply of products and no demand for it. Some factors that lead to it are: •Poor forecasting methods: Inaccurate demand forecasts lead to carrying too little or too much stock. •Seasonality: Producing forecasts that ignore seasonal demand variations is another key reason for a build-up of excess inventory. If you fail to identify items that are affected by seasonal demand, your forecasts for these items will never be accurate. •A lack of market knowledge: Adding qualitative forecasting aspects, or the ‘human factor’, to every forecast is important to prevent ordering too much stock. •Product lifespan: Growth, maturity and decline. At each stage a product’s demand will change. Many inventory planners fail to recognise or take account of the product life cycle in their forecasting. •Bad Marketing Campaigns: In some cases, a good and effective marketing can also help in clearing the excess inventory.
Will I be eligible to get loans in the future if I avail moratorium?
Questioned by T JOSEPH RAJ, Tamil Nadu
Yes, Opting for moratorium will not impact your credit-worthiness. You will not be reported as an NPA (Non-Performing Assets) neither will an adverse reporting happen to CIBIL. However, it is certain to impact your debt raising capabilities in the short term. In the next three to 12 months, bankers are likely to be vigilant, while sanctioning EMI-based credit facilities to customers who have availed EMI moratorium. This is because of the uncertainty on your capability to handle the full burden of your EMIs after the moratorium. This moratorium by no means is a loan waiver. Repaying your loans is a legal and moral obligation, and this moratorium does not change that. So, if your cash flow hasn’t changed much in these months, you should ideally try to clear your dues without the help of the moratorium, especially when it comes to high interest-charging debt.
How to generate business for gift articles in a current situation ?
Questioned by seema sharma, Maharashtra
It's time to go digital in your marketing. The best way to sustain and grow the business is to widen your audience and target market. Using tools and technology that fit in your budget, finding social media channels that give visibility, collaborating with networks of individuals and also perhaps redefining your products. Gift articles that are very unique and sometimes personalized work better. Also understanding what avenues you are getting competition from.
How can we ensure the smooth movement of raw materials to be used in various products?
Questioned by GRACE FRANCIS, Kerala
Most businesses today are facing issues in the supply chain because of the looming uncertainties of lockdown, containment etc in various parts of the country (and the world). However, the good news is that these issues are gradually getting sorted, as more and more logistics companies adopt contactless, digital delivery standards. For a start, check the standards that your supplier is following. If there are other players in your industry (competitors) being able to procure their raw materials, try to identify how those companies are handling their logistics. Try to adopt those methods temporarily at the very least. If your business has a way to source the raw materials locally (nearer to your base, for eg- local farmers), now would be a good time to explore those options.
How can we implement digital payments for all customer transactions?
Digital transactions are defined as transactions in which the customer authorizes the transfer of money through electronic means, and the funds flow directly from one account to another. The different modes of digital payment include the use of debit/credit card, internet banking, mobile wallets, digital payment apps, Unified Payments Interface (UPI) service, Unstructured Supplementary Service Data (USSD), Bank prepaid cards, mobile banking, Electronic Clearing Service (ECS), National Electronic Fund Transfer (NEFT), Immediate Payment Service (IMPS), etc. These accounts could be held in banks, or with entities/ providers.A secure, reliable and smooth transaction is what a modern day online customer seeks, and it is possible to achieve this through new forms of digital payments. Customers are now becoming more receptive to various modes of online payments, due to the convenience and flexibility involved in the process.
Is Covid-19 spreading through exchange of currency?
Covid-19, as we all know, spreads through droplet infection. So, if an infected person has sneezed or coughed into his/her hand and we accept the cash/currency from his un-sanitised hand to us, there is a chance that the germs will spread to us and we catch the infection. Therefore there is a need to use digital transactions as much as possible, to avoid spread of the disease by touch. In case we are unable to adopt digital payment/receipt modes, we should wear gloves or immediately sanitize our hands after receiving cash or currency from anybody to ensure ours and the safety of others too. Let's Break The Chain!
I am a kirana store owner. How can I set up my business online? What are the minimum things I need?
As a Kirana store owner, know that the people in your immediate neighborhood are your best friends and best customers. Even before you take the business online, maintain a good relationship with people that frequently visit your store, and the people that live in your neighborhood, so that they are motivated to buy from you regularly. Even offering a genuine smile to your customers could create a big impact.Next, try to connect with them on chat such as Whatsapp. Encourage your customers to send you their grocery shopping list on whatsapp so that you can keep the items ready for them to pick up. You could also try to have the items delivered in person to your customers.Adopt payment systems such as PayTM or GooglePay or PhonePe at your store so that it is easier for your customers to make payments to you, even if they are away from you.Remember, this is the time to limit selling items on credit. Ensure that you make all collections before the end of each day.
I am a restaurant owner. Now that no one is going to come and dine here, how can I control costs and sustain my business?
It’s a good idea to immediately focus your attention to 2 important things: the kitchen, and delivery to customers.Pay close attention to everything that goes in and out of the kitchen-- the quality of ingredients for cooking, the standards and procedures you have set to prepare nutritious, wholesome food in a clean and well-sanitized environment. Highlight these standards to your customers-- as your effort to fight the pandemic.Remember, in a situation without personal interaction, the quality and nutrition of your food will speak the most to your customers.To sustain your cash flow, you could partner with a food delivery company such as ‘Zomato’, ‘Swiggy’ etc. We also recommend coming up with ‘meal subscription’ options for people that live close to your restaurant so that you have assured business coming in every day.In case you’re running the restaurant out of a rented property, control costs by negotiating with the landlord. Discuss the fact that only the kitchen portion of the restaurant is in a position to generate any income at this stage. This is a good time to strengthen your ties with your suppliers as well, so that they offer better flexibility with your payment terms.
I am a store owner and I want to make sure that people feel safe when they come here to shop? What can I proactively do to achieve this? Can you help with a checklist?
We can suggest some ideas as follows:1. Make it mandatory for your customers to wear a mask -- a clear sign outside the store would help2. Keep a sanitiser at the shop entrance, and ensure no one enters the store without sanitising their hands3. Use temperature scanner for all customers entering the store; disallowing anyone with an inkling of high temperature4. Do not allow crowds inside. Limit the number of customers to max 5-6 at any given point5. If manpower permits, bring in the facility for contactless home delivery of goods as much as possible6. Thoroughly sanitise/wash your hands after receiving cash from customers. Wear gloves7. Clean shop premises thoroughly and regularly8. Use digital modes for receipt of sales
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