We have been contacted by many businesses owners and clients worried about the economic impact on their business. Below is a summary of the steps you need to consider before deciding what actions your business can take to prepare for, and survive, the current economic crisis.
Extra to this, we are also offering free of charge coaching calls to help you get some clarity on the actions specific to you and your team.
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Don’t panic and Communicate
Calm, cool, collective thought is important. Communication is vital and the sooner the better. Staff and customers need to know what is going on. The situation will change as new government announcements are made so adapt to the changes and keep everyone up to speed. The better we communicate with clarity and take purposeful action, the better prepared we will be during this time.
Be positive
Panic or worry never helps, it only gets in the way of what you need to be doing. While it’s completely understandable to be worried, worry leads to negativity and instead you are better to channel that anxious energy and start planning what can be done and get prepared now. Consider what you can do differently to adapt or change what you do in the short term. Be the positive person in the room for staff, family and customers who look to you as a leader.
Consider the impact
If there is an economic crisis pending, how long might it last 3/6/9 months? What would that mean to your business? Would it cause any supply chain issues or even if it has little impact now, could it down the line? How quickly China, Italy and other countries turn a corner will indicate how long it might affect us. Have you planned for a longer-term impact?
Change
As the saying goes, the only constant is change! Don’t sit back and wait to see what might happen and then try to react – it could be too late. Get ahead and lead the change. Look at every aspect of your business: products, services, pricing, delivery, staffing and see what might need adapting in the short term to enable longer term survival.
Cut back
Cost cutting in a crisis is a priority. Lower costs intelligently and flexibly where possible so that the cuts don’t have long term repercussions. Remember CASH is KING. Stop spending other than on essentials and look to see what spending you can slow down or postpone (but don’t cut back on marketing and selling as you need to focus on where you can earn money and let your customers know what you are doing).
Extend credit
Banks have not started cutting back yet so get credit while you can and use it to get through the tough period. Look to renegotiate or get the lowest rates you can and ask for extension of credit so you have an ability to do what you need to do now. Don’t be afraid to contact HMRC during this difficult time and explain that you may need to defer payments for PAYE or VAT (if you are affected by these). They will look favourably on these requests and, indeed, during the crash in 2008, this was a great help to many small businesses. If you have already set things up via direct debits due to Making tax Digital you may need to look at these too. Once it’s gone to HMRC you will not get it back, but being proactive and holding on to it could make a huge difference to many businesses.
Changes to staffing
Tighten belts to get through the difficult period – if needs be, cut hours, spread work amongst staff, suspend bonus programs and use up holidays if possible. Don’t wait until it gets too bad.
Plan work from home
Consider the logistics and plan how this can be done. How will employees communicate, attend meetings and report back from a virtual office? Are there any changes to your technological needs? Have a plan and communicate it clearly with all parties. Offer it to staff right now so that any issues can be sorted before it has to be done.
Look at your operations
Where is your weakest link and consider what might need to change? If people can’t come to you, how might you still get your products/service to them? Can you get to them virtually? Do you need to offer different ways to order e.g. adding an online/phone line option. Do you need to make changes to staffing to offer a different operation?
Market and sell
If you know that changes are needed to offer something different and you don’t tell anyone, it’s link winking at somebody in the dark. If you don’t shout about it, no-one will know and buy the changed offer. Rather than decrease, marketing needs to increase. Create new offers to meet the market’s needs, tell people about them and sell, sell, sell.
Repeat business
Keeping in communication with your existing customers is vital. You need to keep them at all costs – create deals just for them, make them feel valued and loved. Put people first, go above and beyond and over deliver in everything you do.
If you are concerned about how the pandemic is affecting your business, or is likely to affect it in the coming months and need specific help, please contact me. I am happy to speak over the phone, or arrange webinars around your needs to help.
To your continued success and good health!!
