Covid-19: The road to recovery for SME in China

This podcast explores the “what now” and “what next” for small businesses in China as the Covid-19 virus becomes contained. We feature three SME businesses that have been heavily impacted by the outbreak (two in hospitality and one in events management) and discuss their current challenges and future strategies for the short-term. We also talk to two financial and legal experts about practical tips.

This podcast covers topics such as:

• financial and operational impacts of the Covid-19 virus on SME
• survival tactics and opportunities arising from the crisis
• the new trends that have emerged which may become the ‘new normal’
• how to manage cash right away
• contractual concerns and force majeure claims

Key take-aways:

• restaurant businesses have thin margins and limited cash. They often cannot last more than 2-3 months
• customer confidence is returning slowly to hotels and F&B but with tight safety measures in place
• cash-flow should be an operational concern, not just the job of the financial manager
• leaning on trusted supplier relationships for support goes a long way in times like these when payments often need to be delayed
• SMEs with a good recovery plan are more likely to secure a loan from their bank at this time
• small businesses may be able to lean on force majeure claims if directly impacted by the Covid-19.

If your business has been impacted and you would like to get in touch with any of the speakers, please contact janet.jiang@britishchambershanghai.cn

This podcast is conducted in English.

Chapters

• 1:28 FRED FUSEAU: Zizzi Pizza's reaction to the virus
• 2:06 How does this compare to SARS?
• 2:59 How long can a restaurant survive?
• 3:38 Were you able to rely on revenue from online ordering?
• 4:57 What government restrictions were imposed to restaurants?
• 5:31 Will this outbreak change customers' behaviour for good?
• 6:36 Bad news from Zizzi
• 6:46 TOMO TAI: How did The Sukhothai Hotel react in Shanghai?
• 8:05 How do you find a balance between customer safety and creating a 'normal' social environment?
• 9:18 What survival strategies can you share to other boutique hotels?
• 9:54 Will some of the changes you have implemented stay for good?
• 10:33 JEN DORING: How was Riviera Events impacted by the outbreak?
• 12:30 Will you see this revenue come back later in the year?
• 13:29 How did you stabilise the firm after the initial impact?
• 15:25 How does this impact upon your suppliers?
• 17:54 YIMENG WANG (Financial): What are some of the struggles SMEs have been facing over the past few weeks?
• 19:24 What practical advice can you offer SMEs in relation to cash management?
• 20:51 What are the options to obtain cash if not already in the company?
• 22:40 WILL ZHOU (Lawyer): What are the legal concerns you have seen come up in the last few weeks?
• 23:10 What rights do SMEs have when force majeure is not in the contract?
• 24:50 Legal procedures take a long time. How can SMEs respond quickly if they have limited cash?
• 25:27 Conclusion and get in touch.