We know, if the word “unprecedented” is spoken once again, we will all lose it! But that’s our new reality. We are living in times where the entire world is more unpredictable than ever, and that goes for our businesses too! As a business owner, we have some hard decisions ahead, and most of us have probably been making them for the past month or so to try and prepare. As the world pivots towards a new normal, what should you consider during this global financial crisis? Well, let’s talk about it!
Before you begin to consume information that will cause you to focus on your ever-growing “saving grace to-do list’’ in an anxiety-riddled world, press pause. Let’s start by affirming yourself, the work you’ve completed, and the business you have already built. The economy and subsequent shifts in your business are NOT your fault! The happenings in the world have blindsided us in more ways than one, and there are more significant factors at play. So please, do me a favor. Take a 10-second breath, and release all of the negativity that gets seeded in our brains at times as leaders because you’re doing great.
Dive into your numbers
Do you know what to shift when your business takes a hit? What are your monthly forecasts? Maybe you’re not diving into your balance sheet every second, but there are some basic financial questions your business needs to answer.
—What is your monthly revenue? In other words, how much are you losing if your business must shut down? —
—How much is your monthly payroll spend (including yourself)? If your sales are slow, how long can you continue to retain your staff?
—What expenses can be cut or put on hold to save as much money for a future rainy day?
—How much does it cost to keep the lights on? What are your NECESSARY spends, and what’s not? If it’s not a necessary spend, then shift that money towards savings!
Catch a break and call your companies
Admittedly, this has helped me tremendously! Many companies are offering an opportunity to “pause” payments. Many have even cut interests and fees during a specific window of time. However, you’ll want to ensure you’re asking the right questions. Such as:
—Will I owe a large payment at the end of the hold, or will my payments only be “paused?” As a word of caution, you want to confirm the payments are placed “on hold” and not building up because truthfully, that makes no sense and does not help anyone.
—Does interest continue to accrue? If so, then it might not be worth it. But if it doesn’t, then JUMP ON IT! Whether you need the relief or not, any savings right now is still the best strategy.
—Can you guarantee this will not affect my credit score?
Yes, we could all shift online, but at what cost? It’s easy in today’s world to say, “It’s okay. We will shift completely online and continue to operate.” But hold on! Here’s the thing. Most brick and mortar, or larger e-commerce businesses STILL require a TEAM of people to execute tasks and fulfill orders. Remember, this is still a viral outbreak. If your team is continuing to gather and coming in contact with one another instead of shifting operations to observe the health ordinances that will help minimize the spread, then you are actually ADDING to the problem as opposed to making it work for you.
You are running the risk of not only spreading the virus but losing your workforce. Training new employees is the last thing you want on your plate right now. Protect your machine and your greatest investment, which are your people (team). If you can adjust operations to be more flexible with fewer contact orders, then great! But if not, waiting this out may hurt now, but it will pay off later.
And my last tip.
Listen to the world, the market, and don’t put so much pressure on yourself to act now. This isn’t the time to be frantic because, again, you didn’t do anything to cause this, and forcing yourself to fix it may drive you insane. Use this time to better yourself and your business through research and utilizing the various available resources. Above all else, remember to take care of you. Self-care is the best care to get things done. You’ll get through this, and you’ll be better for it. Resiliency is what makes us great.
Disclaimer: BlackLove.com does not offer any financial advice, and the views and opinions expressed in this article are the author’s viewpoints and opinions.