The business environment is changing.  Rapidly.  This is likely to continue for some while and will then stabilise.  Different sectors are affected very differently.
We’ve put together this helpful guide to planning your way through the coming weeks and months.  Different ideas will be relevant for different businesses, so it’s OK to be selective.  Doing nothing, however, is not an option.
Here are 11 steps to think about and plan with.
For more details see Brad Sugar’s webinar on which this summary is based. It is an hour long and would be a very good use of your time.

 

Step 1: Communicate

 

A crisis creates worry and negativity. You need to communicate with

  • Your team – daily. Let them know the current situation and what you are doing
  • Your customers – they need to know you are there, that you care, and that you’re on top of the situation. What do they need now, and how can you help?
  • Your network (including social media)
  • Your suppliers and stakeholders – if you have any difficulty paying suppliers it is best to tell them rather than just avoid them. You also need to know if they have problems with their supply chain
  • Your community

 

Step 2: Be positive and look for opportunities

 

  • Don’t panic – it doesn’t help anyone and it spreads anxiety amongst your team
  • Look for small wins every hour
  • How can I sell “toilet paper”? Think of a product or service you can provide which people will want in the current situation.
  • Sometimes less news is better so don’t check news feeds and social media all the time
  • Lead your people. Listen to your people and support them but don’t collude with them in negative talk.

Look at what can be done not what can’t be done. Be the most positive person in the room.

 

Step 3: Know the cycles

 

This is about understanding that the economic situation rises and falls over time.  We have had a long period of economic “summer”.  We are now into the autumn when growth declines and things are difficult.  There will be a spring when the economy revives so the aim is to survive this period and come out stronger and ready to seize new opportunities.  There is no certainty of when the spring will arrive but Brad’s guess is under a year.

Step 4 – Change

 

You are going to need to change how you operate in the short term so

  • Get ahead – take action now
  • Lead the change
  • Get leaner, faster, better in all areas:
    • products, services, pricing, delivery, staffing
  • In some business sectors, you might need to change the whole business!

 

Key action: get a 90 day plan in place to take you through the immediate crisis.

 

Step 5 – Cut back

 

If your sector is under pressure, cutting costs has to be a top priority in a crisis

  • Remember – Cash is King
  • Stop spending (not on marketing and sales which are the lifeblood of the business)
  • Re-negotiate terms with suppliers. They want to keep you as a customer
  • Reduce outlays
  • Slow things down or postpone new purchases unless essential

 

Step 6 – Extend credit

 

  • Get more access to credit
  • Get more credit cards if necessary – while it is still relatively easy to do so
  • Get loans to get you through – even if you are not sure yet whether you will need one
  • Refinance if you have to
  • Find the lowest rates
  • Keep up with government guidance and access any support for businesses. Check with HMRC if there is any flexibility if necessary

 

Step 7 – Staffing cuts and changes

 

  • Furlough staff to reduce payroll without having to make staff redundant
  • Get people to take holidays now if possible, if things are quiet
  • Make cuts all in one go or by attrition. Frequent rounds of redundancies are bad for morale
  • Pay cuts / reduced hours – get HR advice
  • Suspend bonus programmes

 

Step 8 – Plan work from home

 

Assess technology needs and get them in place for:

  • Meetings and reporting
  • Customer service
  • Banking and mail
  • Communication

Be prepared – it might be a week or two but might be months

 

 

Step 9 – Online and deliveries

 

  • Think about changing the mode of delivery. If people won’t come to you how will you go to them? (e.g. for a restaurant could you start delivering rather than people coming in.  If you are a hairdresser could you visit instead)
  • Use of online/phone instead of visits
  • Avoid meetings, use online tools instead
  • If you must meet people look at hygiene and tell people what you are doing

Step 10 – Market and sell

 

Marketing should be the last thing you stop doing but marketing will have to change

  • Increase not decrease – the businesses that do best during and after a crisis are the ones that keep up their marketing and sales effort
  • Reflect the current situation – create new messages and offers that are relevant to the current situation
  • Negotiate rates with suppliers
  • Create new offers/rates
  • Measure your 5-ways marketing numbers (more important than ever)*
  • Get cash up front where you can
  • Think about how you can assist booming industries and market to them
  • * If you’re unsure what we mean by 5-ways marketing numbers, please call for guidance. It’s important.

Step 11 – Repeat business

 

Your existing customers are the best customers

  • Keep your existing customer base – speak to them often and find out how you can help them
  • Create deals just for them
  • Offer bulk buys for cash up front
  • Keep them at all costs!
  • Communication is vital

 

Step 12 – Common sense and compassion

 

  • Over deliver on customer service
  • Keep everything clean – people will notice now, more than ever
  • Don’t touch people
  • Provide hand sanitiser
  • Keep up to date with the government guidance on keeping people safe as it is changing rapidly
  • Be nice! Put people first