7 survival tips for micro and small businesses
Posted: Wed Jan 22, 2025 6:57 am
Even with impressive numbers such as representing 99% of Brazilian businesses, 30% of GDP and being responsible for 55% of jobs generated in the country, it is common knowledge that the path to success for micro and small businesses is full of obstacles.
Whether it's due to the amount of charges, the difficulty in accessing credit or even a global pandemic, entrepreneurs know very well that they need to always be vigilant in order to keep their companies afloat.
According to a Sebrae survey on the impact of the Coronavirus pandemic on small businesses , 31% of companies had to change their operations and needed to adapt to maintain financial health.
Therefore, the Lowtax team has selected 7 essential business management tips for the survival of micro or small businesses. Check them out below!
1. Nothing manual: invest in management systems
Use technology to benefit your business, saving time and money.
Business management software responsible for managing egypt whatsapp lead financial control, inventory control, product, customer, supplier and partner registration is essential to optimize management processes as much as possible.
Even if it involves an additional cost in the budget, the management system is invaluable for ensuring agility, intelligence and security in decision-making.
2. Distinguish between personal and business finances
Classic fatal error for those who start out in business.
Therefore, the ideal way to keep your finances under control is to set aside a specific checking account for each type of activity, one for the company and one for your personal account. In addition to helping you manage your company's expenses and money, there are specific advantages to legal accounts. For example, if you need to use a line of credit, the legal account may have much better terms than the personal account.
3. Follow the market and your competitors
Keeping up with the latest developments in your segment and periodically analyzing your competitors is a practice that guarantees a broader vision and greater competitiveness.
By observing market trends, products/services, competitors' strengths and weaknesses, communication and business models, it is possible to identify points that can transform your own business and help you stay ahead of the competition.
4. Maintain a network of suppliers
One of the factors that kept many companies from going bankrupt at the height of the pandemic was the supplier network.
In addition to enhancing flexibility to negotiate terms and payment methods, with a broad network of suppliers, the entrepreneur has the opportunity to work on negotiation conditions for values, without being held hostage by imposed negotiations from just one contact.
5. Pay attention to the business model
A good business model for now may be an outdated model a month from now.
Consumer behaviors change rapidly and require strategic changes as well. The Coronavirus crisis is the most recent proof of this. Therefore, carrying out strategic planning, presenting innovative alternatives to reinvent yourself – whenever possible – and having a great differential is one of the most valuable tips for those who want to stay in the market.
6. Keep a close eye on income and expenses
Lack of financial organization is one of the main causes of bankruptcy in small businesses.
Therefore, it is necessary to have a clear vision of the financial health of the business. Keeping strict control of income and expenses will help you understand excessive spending, avoid debt situations and identify opportunities.
7. Analyze the credit options on the market
At this time of economic recovery due to the pandemic, the government has made some measures available to help micro and small businesses. Among them:
– National Support Program for Micro and Small Businesses ( Pronampe ) ; – Emergency Credit Access Program (Peac); – Peac Maquininhas.
With so many alternatives, it is a great idea to have a business specialist carry out a consultation and check whether any of these measures are really necessary for the business and which one would be the best alternative.
Whether it's due to the amount of charges, the difficulty in accessing credit or even a global pandemic, entrepreneurs know very well that they need to always be vigilant in order to keep their companies afloat.
According to a Sebrae survey on the impact of the Coronavirus pandemic on small businesses , 31% of companies had to change their operations and needed to adapt to maintain financial health.
Therefore, the Lowtax team has selected 7 essential business management tips for the survival of micro or small businesses. Check them out below!
1. Nothing manual: invest in management systems
Use technology to benefit your business, saving time and money.
Business management software responsible for managing egypt whatsapp lead financial control, inventory control, product, customer, supplier and partner registration is essential to optimize management processes as much as possible.
Even if it involves an additional cost in the budget, the management system is invaluable for ensuring agility, intelligence and security in decision-making.
2. Distinguish between personal and business finances
Classic fatal error for those who start out in business.
Therefore, the ideal way to keep your finances under control is to set aside a specific checking account for each type of activity, one for the company and one for your personal account. In addition to helping you manage your company's expenses and money, there are specific advantages to legal accounts. For example, if you need to use a line of credit, the legal account may have much better terms than the personal account.
3. Follow the market and your competitors
Keeping up with the latest developments in your segment and periodically analyzing your competitors is a practice that guarantees a broader vision and greater competitiveness.
By observing market trends, products/services, competitors' strengths and weaknesses, communication and business models, it is possible to identify points that can transform your own business and help you stay ahead of the competition.
4. Maintain a network of suppliers
One of the factors that kept many companies from going bankrupt at the height of the pandemic was the supplier network.
In addition to enhancing flexibility to negotiate terms and payment methods, with a broad network of suppliers, the entrepreneur has the opportunity to work on negotiation conditions for values, without being held hostage by imposed negotiations from just one contact.
5. Pay attention to the business model
A good business model for now may be an outdated model a month from now.
Consumer behaviors change rapidly and require strategic changes as well. The Coronavirus crisis is the most recent proof of this. Therefore, carrying out strategic planning, presenting innovative alternatives to reinvent yourself – whenever possible – and having a great differential is one of the most valuable tips for those who want to stay in the market.
6. Keep a close eye on income and expenses
Lack of financial organization is one of the main causes of bankruptcy in small businesses.
Therefore, it is necessary to have a clear vision of the financial health of the business. Keeping strict control of income and expenses will help you understand excessive spending, avoid debt situations and identify opportunities.
7. Analyze the credit options on the market
At this time of economic recovery due to the pandemic, the government has made some measures available to help micro and small businesses. Among them:
– National Support Program for Micro and Small Businesses ( Pronampe ) ; – Emergency Credit Access Program (Peac); – Peac Maquininhas.
With so many alternatives, it is a great idea to have a business specialist carry out a consultation and check whether any of these measures are really necessary for the business and which one would be the best alternative.