Let’s all be honest, at the moment being a business owner is worrying, uncertain and difficult to get your head around. If you can take any comfort at all, it’s that we’re in all in this together.
In life, a crisis can (and now we know DOES) happen at any time without warning, but it’s how you deal with the situation is what really matters. From my experience, you have two types of people.
- The worrier, dweller and if only.
- The doer, hungry and the ‘let’s do this’
Before I continue I must say, it really doesn’t matter if you’re one or the other and it’s nothing to be ashamed of. Ultimately as humans, we all behave differently and nobody is the same. I see it as a bit like grief. Until someone close to you passes away, you really don’t know how your mind or your body will react.
I thought that I’d put this article together to hopefully help someone.
So, back to my original personas above, in this COVID-19 crisis, I have been at times both of the above, depending on what has happened that day. I have also seen loads of people on social media and on video calls acting differently to one another.
I have seen the ‘adapt and overcome’ where they accept fate and quickly adapt goals and plans dynamically and equally I have seen the other side, where the person wants to just give up now and go and work in a supermarket (which is fine by the way. Thank you for everything key-workers).
Remember, you’re an entrepreneur. You’re in this for the good… and the BAD.
So the big question is… What should and shouldn’t you do when you are hit with a crisis?
Do not knee-jerk
Firstly, do not panic. Humans have this tendency to knee-jerk. I get it, if you’re sat in your chair and a spider is running up your leg, you’re not going to sit there and ponder what you’re going to do… you’re going to flick the ba****d off. But in business, be different.
In business, you need to think logically, methodically and have clarity on the situation. Do not knee-jerk.
In the past two weeks alone I have seen thousands of businesses getting rid of staff the same day. I have seen almost every company stop running campaigns, sacking salespeople, stopping advertising budgets. Don’t do this!
This knee-jerk reaction can be more damaging to your business and your reputation long-term. You have spent YEARS building a business strategically piece by piece. Every single one of your decisions over the years has led you to THIS POINT.
Please do not just knee-jerk decide something because of a temporary crisis. You have time to assess. You have time to build a contingency.
Do audit everything
You will never get clarity on this situation if you do not audit your whole business and infrastructure from the ground up.
Look at both your P&L and your processes. Look at your business-critical functions and processes and make an assessment of the best case, and worst-case scenario. Think about short-term and mid-term plans for your business. Consider your options and think about a worst-case scenario (for example if 90% of your own clients were to leave you).
Plan Plan and well… Plan
You may have a business plan already written before a crisis happened. Do not dismiss it. Read it through and work out how off-course you are. Are you a million miles off now? Or is this situation recoverable with a few clever changes?
Make smart decisions now. Do not worry if your business goals have now changed. It may be super disheartening that you’re now miles off where you were heading but you cannot change this crisis.
Accept. Adapt. Overcome. Grow.
Accept it. Adapt your plan. Overcome your worries. Grow your business.
Make a new plan to close that gap between where you were and where you are. The more you close that gap, the more you’re getting more on track.
Remember, none of this is your fault. Shit happens.
These decisions today, make you stronger tomorrow.
Consider your marketing strategy. Could you use this as an opportunity?
Build an audience
If you’re sat at your desk now with less to do, consider building your audience. Create new content to share with your connections on social media.
You have a massive opportunity to create an amazing voice and noise, through all of the bad news. Add value to your audience and start building yourself a credible and trusted brand. Reach out to new connections. Offer them your expertise.
The bigger audience you build now and the more value you add to your connections, the more they will repay you later.
Think about whom you engage with on social media. I bet that you engage with the person who gives you advice, the one who gives you content, downloads, videos, articles, and a good laugh. You feel like you know that person right? Well, you don’t. You’re part of their audience.
I bet you delete, ignore or click past the salesman who posts about how they’ve hit a target or that recruiter who wants you to hire that one-of-a-kind Web Developer who is willing to locate anywhere for £100,000 a year, a company car and a bacon sarnie.
You connect with people you like. The people who are human. The people that add value to you.
Build a new audience today. Grab your phone. Record a minute selfie video. Post it. Same tomorrow. Content the next. Be more human.
Future-proof your business now
It may not seem it now, but I promise that this whole situation will make you and your business better. It will show you your failings. It will make you work smarter. It will make you believe in your ability to make better decisions.
In 5 years’ time, we will all look back at this temporary blip and realise that some good came out of it. We all have a lesson to learn.
We will learn and understand that in business that cash is truly king (and queen). We will know how volatile our society is and make wiser more sensible decisions in life and in business.
In my coaching, I always talk about cash. How much cash is building in your business? What cash reserves are you building?
Many business owners say to me with a smile ‘I love the luxuries so I run my business lean’ and keep very little cash available. This is a dangerous game to play. I think we’ve all learned that now.
You need to keep cash available and allow that pot to grow as your business does.
I remember when I was about 15. I was playing the PlayStation at my parent’s house and my dad walked in, sat on the end of my bed and said this…
Adam, if you’re serious about starting a business promise me this, don’t ever turn greedy, don’t ever overspend. If you have cash, no one can touch you.
I remember the look he gave me like it was yesterday.
I still thank my dad today for that conversation. I’m now almost 30 and I still consider those words every time I invest in anything.
The thing is, every business is only a few months off danger but if you build cash reserves early you’ve bought yourself time. For example, at my company Damteq, I keep enough cash set aside for 6-12 months of uncertainty. That isn’t to say we’re not making changes, but it’s an amazing growth fund set aside.
It’s a harsh reality, but every decision you have made in the last two years has led you to the point you are now. If you’re struggling, it means you’ve not saved enough cash, you’ve probably overspent and you may have made a poor decision in the past. I know you could never have predicted this happening, but ultimately as an entrepreneur, it is your responsibility to grow a stable organisation for your team and future.
From today do this… Every single invoice that gets paid, save 20% back as profit. Put that 20% in another savings account. As soon as it enters that account it’s locked. It’s a rainy day fund. It’s untouchable (it’s not… but convince yourself it is). That 20% is not to be spent on anything.
You may look at that and think ‘That’s going to take ages to build up’. Yes, it will, but ultimately you’d rather build up small cash reserves month on month for the next 3 years to then have a comfort blanket of £XX,XXX, than a business in 3 years’ time that disappears overnight.
Remember. The decision you make now will change your future. It is not too late.
So. What an interesting time for us all. A time where we’ve had more time at home, more time with the family and more time to think ahead.
It may seem worrying at the moment but remember, this is all temporary. You can do this.
To summarise what I’ve spoken about in this article:
- Don’t knee-jerk
- Audit and review your business processes
- Look at new marketing campaign options
- Plan Plan Plan
- Build a new audience
- Future-proof your business now, for tomorrow
See this time as an opportunity to cleanse your business and your processes. You have a once-in-a-business opportunity here to have a clean slate and to start afresh.
We’re all in this together.
If you or anyone you know would like some personalised tips or advice. Please do get in touch.
Please do leave me a comment or some love on social media if you found this article useful!
