5 Steps To Go From Surviving To Thriving In The Current Economic Downturn
We’re currently facing the biggest time of challenge that many of us ever have.
Businesses are closing. People are losing their livelihoods.
But with every crisis there's both danger and opportunity.
In order to identify and use the opportunities available to us, you need to have a solid game plan in place. You need to be working on your mindset. You need to be clear of where we're going and lead those around us.
Recently I recorded a webinar for my Opulence and Boardroom clients on surviving and thriving in recent times. Today, I want to share with you the eight steps to go from surviving to thriving in the current economic downturn and the crisis we face with the coronavirus.
So let's kick off, get a pen, get a paper, a cup of coffee, beer, whatever required to follow this information.
1. Have a plan
This might seem obvious, but many business owners aren’t doing it.
You need to have a weighted plan based on business activity that allows you to trigger it based on data - not emotion.
Have a plan in place based on a 75% reduction in revenue. If you lose 75% of our revenue, what actions do you have to take to ensure that you can still maintain profit or at minimum break even?
Then have another plan in place for a 50% reduction in revenue, and one for a 25% reduction.
If those plans are put in place upfront, it allows you to have a free head space to focus on seek opportunities that are coming from this crisis, rather than being stuck in the fear and the worry around what to do.
If you need help putting a plan in place, please feel free to book a call with one of my team. I’m more than happy to help you put a customised plan in place for free. Whether you decide to work with us or not, we want to help as many people as we can through these tough times.
2. Prepare for change
So be the one that seeks change rather than allowing change to come to you.
Realize that change is inevitable. Start to lean into and be okay with discomfort and uncertainty. That's part of our role as CEO or business owner. The sooner you accept this, the better off you’ll be.
Now is the time to innovate and to seek out the opportunities at hand.
We just had one client who runs a large events business lose 100% of their revenue overnight. We helped him pivot by hiring a space and to set up a ‘pre-recording’ studio where his clients could send in footage so it could be produced and delivered live to their event attendees online.
Literally overnight this client went from running an events business to running a recording business. He was able to keep a lot of his clients, and keep a lot of revenue coming in. But it was through that decisive action that made it happen.
3. Investigate staff and credit cutbacks
Cost cutting is a top priority in a crisis. The key is to lower costs intelligently - not from a state of panic.
Go through your expenses and work out what you can cut back on. What are the things that you absolutely need versus the things that you like to have? Then cut out everything that you don't need right now.
Potentially remove staff bonus incentive programs right now.
Potentially negotiate with staff to do split rosters if you don't have enough work for all of them to keep them all on.
Potentially negotiate with them to reduce their wage for this period of time.
Nobody wants to do this. But the reality is that you have to make these hard decisions if you still want to have a business 3 months from now.
4. Get repeat business
There's never been a more important time than to look after your current clients than right now.
Are there solutions that you can create specifically just for your current clients?
If you've got a large client base, your clients have other needs that you can deliver on.
Survey your clients, do some research work. Work out what they need and provide it for them. That might be toilet paper, it might be face masks, it might be thermometers. As silly as it sounds, it might be that.
What do your existing clients might need from you right now, and how can you be the one to provide other things for them?
5. Change your delivery model
Can you waive delivery fees or offer a virtual product?
We've had a number of clients that are in gyms or dance studios that obviously have been copping it pretty crazy right now with the coronavirus. They have huge no-show rates.
So we helped them pivot their model to run online and deliver recorded content.
At the end of the day, parents want their kids to be doing dancing, or going to the gym or whatever else.
Even more so, parents don't want their kids running around the house crazy while they're in lockdown, so giving them something to do is ideal.
Can you start to deliver a virtual product based on what you've got?
Who knows, it might be the greatest innovation your business ever had.
I know a few of our clients are asking ‘why the hell haven't we done this earlier? It's way more profitable. We haven't had any drop-off rates, and we can see this being strong for our business moving forward to allow us to enter international marketplaces as well.’
That’s an outcome I’d like to see for your business, too.
Want some help?
There are three more steps in your ‘Coronavirus Survival Plan’ that I haven’t covered in this blog post.
To find out what they are, take a look at this video I recorded that shares them all.
And if you need help pivoting or transitioning your business during this difficult time, please reach out.
I’m committed to helping as many business owners as I can successfully navigate these uncertain times. Book your free strategy call with one of my team here.