2020 Survival Record of Small and Medium Enterprises

 

In light of the epidemic prevention and control in 2020, the Chinese people had to stay at home for isolation and saw repeated extension of New Year holiday and adjustments to the business resumption time.

Someone posted online:

The first day I wake up and find five holiday days left

The second day I wake up and find seven holiday days left

The third day I wake up and find fifteen holiday days left

After the holiday, I find myself unemployed due to company closedown

Given increasing confirmed cases of novel coronavirus infections, small and medium enterprises face life and death.

You may consider it not to such an extent: without businesses in two or three months, a company with annual profits of several million yuan will at worst lose hundreds of thousands.

However, that is just from your view.

Usually a business with adequate cash flow may survive for six to twelve months, while others without may prop up for two or three months.

Below shows the new KTV project launched by Crystal Orange Hotel GM Mr. Wu Hai. His business can survive for mere two months and other peers likely face a worse situation according to current policies against this epidemic.

Small appliances makers face a less grim situation, but still, they seem not to support more than half a year.

Hence, to live on becomes the first and foremost target of small and medium businesses in 2020.

February:

95% companies that initially set to resume work on February 10 fail to get resumption approval, while those permitted face a limit on the amount of staff on duty, and production people are largely nonlocals who are required of self-isolation for at least 14 days.

Work at home in February

March:

When the epidemic is well controlled, positively speaking, the employers may see 50% to 60% staff back from home successively to resume work after isolation, and 30% to 40% orders placed before the holiday to be fulfilled given their shortage in manpower and their suppliers’ limited resumption and material deficiencies.

April:

In April, the same problems in March will remain, and new issues may emerge such as industry-wise shortage of certain parts or components in low stocks without full production.

Unfinished orders placed before the holiday may be cancelled or required of air parcel delivery.

Enterprises oriented to foreign trade may see few clients at the Canton Fair in April.

May and June:

Enterprises will face the same problems in labors, materials and clients as the previous two months. And once new confirmed or suspicious cases are found inside, the people will be isolated and the plant will be shut down, totally a catastrophe to manufacturers.

It is a headache common to enterprise owners to ensure staff to work safety.

July and August:

As it gets hotter, the epidemic will be fully controlled. Makers will see employees basically in position, the supply chain put right, and production back to normal and orders normally delivered. The biggest issue is the shortage of orders for the second half year, impacted by declines of fairs and clients in the first half year.

Enterprises will see smaller peers around barely hang on and close, and get some orders transferred from them. Now they can make normal shift arrangements.

September and October:

Enterprises will arrange production step by step and prepare for September and October fairs and exhibitions.

Clients will surge in September and October fairs, to release demands repressed in the first half year. New exhibitors will increase while many familiar runners failing to go through the first half year are transferred or acquired.

Clients will place news orders after hurrying through booths.

Back from fairs to factory, producers will receive clients’ order delivery urging emails filled in inbox. They will ensure the order deliveries as the Christmas holiday overseas will last long.

Production division in the industrial area will get notified to work till 12 pm to rush through an order.

November and January:

Orders won at fairs are to be delivered and everyone will get busy.

It will feel like a thing long before when mentioning this novel coronavirus pandemic.

February:

It will be time to work overtime to rush through orders, as New Year is approaching. Numerous calls will be received from clients to urge deliveries, and apologies will be carefully made before discussion with production people for solutions. Staff will be off successively on January 5 and 6 and return home on January 10.

Light a cigarette and fire crackers. It will be a sudden to realize the New Year of 2020 was spent at home, without going out as of the eve due to the pandemic.

So good to live.