Star Lifestyle this week had an extend talk with Tahia Khalil, our Financial Advisor who gave quite an insight for small business who are hard hit in this COVID-19 pandemic along with a survival plan. To reality into perspective, Star Lifestyle is presenting three diversified business cases to understand how much of theoretical solutions can be put into practice. The three cases include Nandan Children’s Fashion House – a small, family centred exclusive children’s wear provider, Hammer Strength Fitness Club – a gym that relies on constant physical presence of clients and trainers, and a compilation of kindergartens who are being forced to shut down

Hard Times for Nandan Children's Fashion

In 1996, Nandan Children's Fashion had set out to change the scene with readymade stylish children's wear that did not burn a hole in the wallet. With options for various sizes and exclusive designs, the name Nandan has been essential for those looking for a set of trendy children's clothes.

Fast forward to 2020, with the store now one year away from celebrating 25 years, the COVID-19 pandemic has hit this small business with unprecedented shortcomings. When the stores, offices, schools and just about everything around the country were put into full shutdown in late March, 2020; it was roughly a bit more than two weeks away from Pahela Baishakh in April. And right around it was Eid-ul-Fitr, undoubtedly the biggest occasion for clothes shopping in the country. In fact, both these celebrations traditionally call for a good amount of focus on expenditure on new clothes, food, and all-around merriment.

However, as the countrywide shutdown edged past into the one-and-a-half month and carried well into the month of May, things were bleaker than ever for businesses all around. For Nandan Children's Fashion House, which is a moderate family initiative, this spelt unforeseen difficulties. Typically, small businesses like these reach their annual break-even with a respectable profit during the Baishakh/Ramadan season. But Nandan was left floundering to make ends meet.

Fixed costs like rent and employee salaries during the lockdown, with absolutely no sales, cut deeper into the rainy-day reserves and beyond. Nandan, which had a good footfall with three outlets in Dhaka, had to close down one store in Bailey Road, a place well known for its ever-bustling shops and stores. At this point, taking a loan or any other financial aid may seem lucrative at first, but paired with the already existing loans and liabilities, it only digs deeper into the financial burdens.

The owner and founder of Nandan, Irshad Ara, has not yet lost hope. Already, her Facebook page is highlighting the Eid-ul-Azha collection for the upcoming 1 August celebrations. However, her expectations are still to be tested against the reality of cost cutting of her buyers. On average, typical sales during the Eid-ul-Azha season is a bit less than half of the average sales during the preceding Eid-ul-Fitr. It is not just her ready-made clothes; her wholesale suppliers too have faced similar difficulties. Everyone is cutting down on costs and redirecting funds for the essentials only, and Irshad Ara is no exception. With a heavy heart, she has had to reduce her team of over 40 people without being able to pay them their dues.