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Six Short Years Ago
Six Short Years Ago
Richard T. Hendee
A Silver Fox Advisor
In April of 2020, just six short years ago, the business world and the world as we knew it changed as a new word hit us all very hard. “Covid 19” was that word, and no one really planned for it, but for the rest of 2020 and 2021, we all dealt with it.
I looked back at the article I wrote for our Newsletter in April 2020, a copy of which is included below, and as I was reading it, I wondered how many of those 15 points businesses are still using or following today. Then, I reread all 15 points, and I said "WOW", almost all of these points are good operating procedures and processes to follow when any business is going through some difficult times, even without a major pandemic unfolding.
Thus, I determined that if a few words here and there were changed, these 15 points can be used in any crisis, be it financial, economic, natural disaster, data breach, reputation, labor difficulties, or a major political conflict. Not that we wish any of those things to happen, but they could happen!!! So, let’s be ready if the unexpected happens again!!!!
TIPS FOR BUSINESSES DEALING WITH FALLOUT FROM THE COVID-19 CRISIS
- Preserve your cash – Cash is King, and if you do not have revenue coming in, you will need all the cash you have. Even if you have receivables due to your business, those businesses are in the same situation and are trying to preserve their cash, too.
- Pay only those accounts that you must in order to stay in business. This is a tough one. Probably only you know best who will wait for payment.
- Seek loan payment deferrals from lenders – Most lenders will do this in 90-day blocks. You need to be proactive with this one.
- Lay Off workers who are not needed at this time – This is probably the most difficult thing you will have to deal with as a business owner. Often, your employees are like family, and your instinct is to retain them. However, if you don’t have the cash to pay them, you simply do not have a choice in the matter. Further, if you do lay off the employees, they can file for unemployment insurance, and they will receive some money to help them.
- Change work schedules – You might also want to consider changing work schedules and moving to having employees alternate with one week on and one week off.
- Arrange for deferral or reduced rent payments – If you rent or lease your facilities, contact your landlord and ask for reduced or deferred monthly rent payments.
- Reduce hours of operations – Look at the hours your business is open, and if you can do so, open a little later and close a little earlier.
- Delay inventory build-ups – Look at the inventory you have on hand and delay plans you may have had to build up inventory for the Spring or Summer sales peaks, peaks that likely will not happen this year.
- Consider changing product sale processes – Determine which products or services you offer that your clients need to get them through what everyone is experiencing, and offer online shopping and delivery of those products or services. Be proactive.
- Explore small business assistance programs – The Small Business Administration (SBA) has Disaster Loan and Assistance Programs available for small businesses. Your business does not have to have had any present or past SBA Loans to apply for these Disaster and Assistance Programs. There is paperwork that must to be completed and documents that are required to be submitted. The approval process will likely take some time, as the SBA will be dealing with a large number of requests, thus you may want to start sooner rather than later. Don’t wait until you have no cash left.
- Maintain an open line of communications with customers – Now is a critical time to keep your business in front of your customers. Your competition may not be doing this, so keeping your customers informed is something your customers will appreciate and likely remember in the future. Further, for your larger customers, you may want to even reach out to them on a personal basis and check on them and their families. This action will show you not only appreciate their business but also care about them personally.
- Market outside the box – There are ways you can continue to market your business and brand even if you are not fully open for business. If you are participating in those Zoom Conference calls in your home office, why not get a big whiteboard as a backdrop behind you and put your logo, website address, phone number, or brand message on that board so the individuals also on the call can see your business message instead of all your memorabilia on the wall or in bookshelves? I call it a virtual billboard. Offer your customers discounts if they buy gift cards now for future purchases or extend a service contract. Get creative, your customers will appreciate your initiative.
- Back to Business Plan - At some point, we will all be “Back to Business”, and it probably will look and feel different at first. Why not take this extra time you have and develop a “Back to Business” plan so you can hit the ground running when the all-clear signal is given? This plan should include everything you can think of. Hours of operation, employees who will be called back first, and how you will let your customers know you are open. Even how you will conduct business in the future. You might want to consider a “Grand Reopening Celebration” and have some fun things for customers, like a jump house in the parking lot for kids. Hot dogs for lunch on Saturday. Root Beer floats in the afternoon. Freebees for the first 100 customers who come back into your place of business. I think you get the idea.
- Document what you are experiencing – Hopefully, none of us will have to live through an event like this ever again, but documenting all you have done and will do just might provide you a good playbook to guide you in the future.
- Determine what has worked well during this crisis – We all have had to be creative in the way we are running our businesses during this crisis. Maybe those Zoom Conferences were something that you never participated in before. Now that this has become something almost everyone is getting used to, it just could be a way you can hold meetings in the future, instead of driving across town for an hour and a half to attend a one-hour meeting and then drive back to your place of business for another hour and a half, taking a total of four hours out of your day. Look at the equipment you have at your place of business. Maybe it just needs to be upgraded to accommodate some of these changes that you need to make.
Silver Fox Advisors is celebrating 40 years in operation in 2026. Our members are proven business leaders who advise, consult with, and mentor other business leaders, CEO Roundtables, and entrepreneurship programs. We would love to be of assistance to you and your business. For more information, visit: www.silverfox.org or call 713.467.5900.
