How to Plan to Survive Your Best and Worst Case Scenario During COVID-19
The world in 2020 looks very different to what it did a year ago.
And that’s not going to change any time soon.
Your ability to pivot, let go of what you've known and work through what's happening right now will see you move your business through this period... and lead others in the process as well.
Many businesses are facing closure right now, or have already closed.
But closure isn’t the only solution.
At The Game Changers, we’re teaching our members methods to survive through this storm and be in a strong position to reopen their doors when this crisis is done.
The key here is planning.
Let me share a strategy with you today.
Scenario planning to keep your business afloat during COVID-19
Step 1: Plan
What is the worst case scenario for your business on 30th of June?
What about 30th of December, 2020?
What's the absolute worst case scenario you can see for your business, for your life right now?
On the flip side….
What is your best case scenario?
Just by brainstorming the answers to these questions, you automatically start to reduce the emotions around it.
Because we start to see that internal dialogue (instead of just hearing disjointed, random panic echoing through your mind).
After you’ve worked these two scenarios out, the third thing is work out what’s in the middle?
If we're just to coast through in the middle of this crisis, what does that middle case scenario look like?
The next part is really important.
It works on the same principles of using our mind in the same way.
Step 2: Budget
Now it’s time to work out your budget for your business during each of these scenarios.
Just say you see a 75% drop in revenue. What needs to be done to break even?
So, if your business was to lose 75% of its revenue today or tomorrow, what actions would you need to take to still break even?
We want to make sure that regardless of what life throws at us and our business right now, we have some plans in place so that when it happens we can see it happening, and we can extract our plans from a place of calm, certainty, and with compassion.
It's too late to make decisions when you've run out of money and you've got no way to feed yourself.
As the saying goes - proper planning prevents piss poor performance.
So you need to make sure that you don't panic, but you plan instead.
Create three budgets.
One is if you were to lose 75% of revenue, what would have to happen to your business? What changes would you have to make to break even?
The second one is, if you had a 50% reduction in revenue, what changes have to happen to break even?
And the third one is, if you had a 25% drop in revenue, what changes would you have to make to see your business break even?
Now, of course the goal is not to break even, but to maintain profitability regardless of what the external environment is throwing at us.
But your three action plans give you the security that if you're managing your cash flows and your PNLs on a daily and weekly basis, and monitoring the current state of where things are at, when you can start to see this slip you have a plan ready to implement.
As I said, you can implement it calmly, compassionately, and with certainty because you've actually worked it out and you've sat down and taken the time.
Don't wait for change to happen and control you to make change. You are the one that dictates change. You are the one that leans into change and uncertainty and you'll be much better for it.
Crisis or opportunity - you decide
The Chinese use two brush strokes to write the word ‘crisis’.
One brushstroke stands for danger. The other stands for opportunity.
In any crisis you should be aware that there's danger... but you should also recognize there's always opportunity.
In any given situation I've been through, or that any of our guests on The Comeback Game podcast have been through, they've always mentioned that when they've been able to sit back and reflect, that they've understood and been able to see there's been huge opportunities outside of any challenge, adversity or danger they've once experienced.
Yet we can't get there if we're stuck in our heads and if we're stuck in a state of fear.
So work out what's the best case scenario, the worst case scenario sometime in the future, and then work out a budget and a plan for if your business was to lose 75%, 50%, or 25% revenue.
This is going to allow you to move back to a state of peace, and a state of calm with some certainty around what's faced.
More than likely, you may have to lay off staff. You may have to reduce their wages. But you following my advice here means that you will have a solid plan in place to ensure that you don't allow one sailor to sink your whole entire ship.
Over to you...
If you're looking for some stability in an ever changing environment, or looking to work with people that are the forefront of ensuring that our clients not only survive but thrive through this, please click below or book a call with one of my team.
We’ll have a quick, no-pressure chat around helping you create a specific and customized game plan to help your business through.
Otherwise, check out https://www.thegamechangers.com.au/ and get in touch through the website.
A bit about us - our business growth program The Opulence System™ takes business owners from struggling and overworked to 3x growth and profits while getting back 10 hours a week within 6-12 months.
We’d love to help you achieve the rapid growth and results that our Opulence clients do.If you’re wanting to learn how to stay on top of your competition and start marketing more effectively, please feel free to reach out to us by dropping a comment below.
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