How to Keep Your Small Business Operational during a World Crisis

As most of the world is confined to homes during this Coronavirus quarantine, we all may be feeling helpless. Especially when it comes to our livelihood. The uncertainty of the future can be anxiety-producing. Over the past week, I’ve been in contact with many of my clients and colleagues who are under pressure to meet deadlines with little resources and despite these current constraining circumstances. Others have expressed debilitating fear over the loss of income and business.

So what can you do to survive through difficult economic times?

The Big Picture

Examine the big picture. Sometimes our emotions can distract us from seeing all things. Assess your company, the business you do, and your situation in its entirety. Take a break to regroup and gather your thoughts. This will help you make better decisions. Then plan out a good strategy that will carry you long term. Even if it means making some sacrifices upfront.

Cash is King

Make sure you have enough cash to operate. If you need cash right away, offer a discount to clients that can pay you COD. Cut back in as many places as possible. Re-negotiate pricing and longer payment terms with vendors. Set up a line of credit with your bank or try to get a lower rate on an existing line of credit. Payroll is usually a big expense. If you have to enforce a pay-cut with employees to improve cash flow, offer them extra vacation time in lieu of overtime payments.

Teamwork

Connect with your staff right away. Your employees are your champions. Speak with each team member and assess their immediate needs. Encourage them to take good care of their physical and mental health. There may be some employees that are non-essential and some who can afford to be placed on a leave. Some may be able to take on extra tasks if you have to scale back temporarily. The most important thing is to work together and do everything you can to raise morale during tough times. Talk out all potential issues with them. You can’t afford for communication to breakdown. Keep brainstorming with your team and support each other.

Maintaining Workflow

Double-check all of your resources and departments within your company. Making sure you have all the necessities to operate is important to keep workflow going. Get in touch with your supply chain and work with them to keep business flowing. Prioritize jobs.

Clients First

Place a call to your clients. Check in to see how they are doing. Assess their immediate needs. Ask them if there is a service you can provide to them to help. Exchanging ideas and thoughts with clients is also helpful in gauging the general business climate in your industry. It may be a while before you can interact with clients and vendors. Inviting your customers and vendors to connect via video conference is very effective. Stay in contact with them often as they are your lifeline. Always ask clients for referrals. Circle back to clients that haven’t done business with you for a while. Followup is critical and this is the time to go through your contacts and make those calls.

New Business

Supply and demand for products and services will change. Perhaps there is a new service or product you can add to your business that be useful to your clients or that can attract new customers. Now is the time to think unconventionally and outside of the box.

Ramp up on sales. Create better quality and entertaining digital ads to attract the attention of the masses who are confined to their homes. In every crisis, there is opportunity. Leave no stone unturned.

© Gena Vazquez 2020