Should I even consider applying?
Let’s face reality. We all question whether or not this SMME actually will give you some sort of business relief or not.
Statistically, an SME makes anywhere between R200 000.00 & R 1 million annually. Of which the government has only given 6 % of SMMES funding thus far. You’re probably thinking, well should I apply? Is it worth the try?
Our answer to this is, hell yes!
It’s always worth trying to source some relief from funds to help secure your business. You might just be in a mindset of thoughts that makes you believe you do not qualify for the grant.
You might also be thinking that you have enough cash to cover some major expenses for about 2 to 4 weeks. You might be considering cutting employees pay or even letting staff go to prevent your expenses staying high during this time when you have no income coming in. That’s where we all go wrong.
Younger businesses are the most vulnerable businesses. When I say young I mean 2 to 5 years old. You might not have generated enough clientele to assure you a normal cash flow return for when lockdown is called off. Bear-in-mind that this might continue for a lot longer than we expect it to. I don’t mean the lockdown itself, but I am referring to the financial struggle of building your business back up. Remember people will start going back to work, but they won’t have the same salary they did 4 weeks ago and spoiling themselves might not be at the top of their to-do lists.
So here is an example of how the SMME can positively impact a small female-owned hair salon who has 3 employees and is just 2 years old.
Jessica a young business owner who has no financial support from anywhere but her salon. Now that she is unable to trade during this time, she has consumed all her spare funds to not only pay for her business expenses, but she has also needed to eat into her small savings account that she usually uses for her personal household expenses. Jessica is a mother of 2 and before she never minded helping her business out when needed with some personal funds, however now her family has to come first.
She has paid all her bills for March. However, all her savings and all her extra funds have been used on this. She now has to seek help from the SME, because if she does not, she could potentially lose her business she had worked so hard at building.
She sourced assistance in submitting all her paperwork, together with her registered with the SMME.
It took about 2 weeks before she received a response saying “we have received your application, it has been handed over to the processing department and your funds should be available in about 14 working days.”
This was such a relief for her, giving her more time to spend with her family and less time to worry about the business she could have potentially lost if it was not for the SMME coming to her rescue.
Your business might not get funding, but you will never know unless you try. We have made it our mission to assist as many small businesses as possible to help them register and get the correct paperwork submitted and communicated to apply for this funding.
We can help you, get in touch with us and let’s work together to see how you could get some help.
Stay safe and focus on your business
The HiTek Accounting Team