Q: How can business owners build resilience and strategy during COVID19 quarantine?
Answer: To build resilience, remember who you are and where you came from. These three steps should help you create a resilient mindset and plan:
1. REMEMBER WHO YOU ARE & WHAT GOT YOU INTO ENTREPRENEURSHIP TO BEGIN WITH
As business owners, it’s helpful to remember that the chutzpah, the energy, the creativity, the desire to meet a customer’s needs which got us into business to begin with is what’s going to get us through this next phase. Even in crises, that didn’t die. Your energy, your creativity, the skills that you have to provide to people, the desires and needs the customers have, is there. Remember that what built your business before is what’s going to continue to build your business in the future. This should encourage all of us.
2. FOCUS ON THE BASICS YOU KNOW THAT BUILD PROFIT
A) TOTAL REVENUE
There are two things that affect your profitability in a company. It’s your total revenue and your total costs. So if you have cash flow issues right now, let’s take a minute and talk about how you can increase your total revenue so it will look different.
I’m not trying to insult anyone’s intelligence. We all know that people are not buying what they were buying before. That’s why businesses are slow. But that doesn’t mean they’re not buying at all.
I wrote an article about the 2008 recession and what we can learn from it for this coming recession. And the truth of the matter is some businesses completely closed while others did better. This is not a moment to be afraid. It’s a moment to take an assessment and look at, okay, there’s revenue to be had. How do I go capture it?
B) TOTAL COSTS
And then to look at your total costs. Okay, how do I reduce my total costs?
That could look as practical as telling your employees, I love all of you, but we have to reduce our salary by 25%. It’s either that or everyone loses their job. Reduce your salary too. Share with your employees what you are doing to address this situation. List expenses you’re reducing. This shows there was a team effort here. Thank them for their participation.
I did that. We didn’t make our payroll in March and I took a cut. I brought my salary down 25% and asked everyone to do the same.
3. COMMUNICATE AND ASK FOR PARTNERSHIP THROUGH THIS
It’s better to keep people aware and be honest with your employees. You should also be honest with those that are partners in your success like your landlord, for example. Reach out to them – don’t go dark. Come back and try to negotiate with them for reduced rent, or even a payment plan.
The ideas above are so much better than just giving up. We’re entrepreneurs. That’s what we’re here for. We solve problems. Create a plan that focuses on increasing revenue and decreasing costs. And ask your key players to get involved in getting you through this.
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Expert taken from “USC’s Alumni Entrepreneurship Webinar Q&A: Building Resilience For You And Your Business During COVID-19” (5/12/20). To watch or join the USCAE VISIT: https://www.facebook.com/watch/?v=535727827333636
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MORE ABOUT EMILY PAGE
Emily is CEO of Pearl Resourcing and has managed and launched multiple 7-figure brands in Costco, Williams-Sonoma, Kroger, and Amazon. She’s bringing you the expertise, resources, and mentors you need so that you can develop products and make them sell.