Right now the world is in the middle of the COVID19 epidemic and sadly, many businesses big and small are suffering. This is a crisis unlike anything we have seen in the past however it is not the first crisis that business owners have suffered (and endured). Crisis can strike in the way of a natural disaster, a major accident, a destructive riot, or economic disaster (among others). If you are a business owner then you need to find a way to keep your business afloat during the crisis. While this is admittedly the first major crisis that my small business has been tried in, I have quickly learned how to adapt so that we can keep our team employed and our doors open.

 Here are some steps that you can take to help your business survive:

  1. LEARN TO ADAPT
    • Set new short term goals.
      • Surely you started your week, month, or year with set goals. Now, this time of crisis threw a wrench into those goals and they may have to be saved for later or thrown out completely. While it may feel like a loss, if you do not set new goals for the situation at hand you may not get onto the right path quickly enough to keep your doors open.
    • Change your marketing plan to meet the current needs.
      • Just as you may need to set new goals, you may need to adjust your marketing plan. This may mean making sure that your customers know that you are still open. It may also mean offering new deals and savings to get customers in the door. Be sure to differentiate yourself from other businesses and marketing emails. Right now every subject seems to contain “COVID19” be creative!
    • Ask yourself what problem your business can solve for your customers. It may not be the same problem you were solving in the past (if it is then fantastic!). Even if you are solving the same problem for your customer, find ways for your company to make the needed  changes to continue to solve this problem in order to keep your customers coming to you.
      • For example: right now a customer may need to have their vehicle serviced but not want to risk being exposed to COVID19. As an automotive repair shop you can offer your customers the opportunity to drop their keys in a locked box when they drop their vehicle off and call to let you know what their vehicle needs. Offer to wipe the interior of the vehicle down with disinfecting wipes before returning it to the customer. And allow them to pay by credit card over the phone.
      • Example #2: If you are a counselor or therapist your customers may not be able to come to you amid a crisis so you can offer sessions using Zoom, text, Facetime, or by phone.
    • Offer financing options to your customer. In times of crisis and uncertainty people tend to hold onto their money and only spend it when absolutely necessary. By offering financing then can still make the purchase and not have to pay for it right away offering  some peace of mind of the time being.

 If you do not have this option already it is a good idea to become a merchant for a company that offers short and/or long term financing if customers typically make larger purchases with your business (veterinary clinic, tire sales, furniture sales, appliance sales, flooring). There are some industry specific financing options (Care Credit for doctors & dentists https://www.carecredit.com/providercenter/?sitecode=synfin) that you can offer and some companies that offer financing for multiple industries (SNAP! Finance https://snapfinance.com/, Synchrony Retail Credit https://www.synchrony.com/for-businesses.html#credit-services ).

2. KEEP IN TOUCH WITH YOUR CUSTOMERS

  • Pass known resources on to your customers. If you know that the government or a local church is offering some kind of assistance let your customers know.
  • Keep your customers informed about your business during the crisis. Will you be temporarily closing your doors? Changing your hours of operation? Closing your waiting room but staying open for business? Working from home? This is a great way to have contact with your customers, let them see your name/logo and know if you are available to them.
  • Let your customers know what you are doing for them. What changes has your business made to accommodate your customers for the time being? Will you be delivering food to their vehicles? Offering financing? Offering pick-up or delivery services? Following new sanitation procedures? If you can make your customers feel safe while continuing to use your services they are more likely to use them.

3. UTILIZE RESOURCES AND CONNECTIONS

  • Ask for the favor.
    • This can be hard for many proud business owners. But swallowing your pride and asking for a needed favor may help your business make it through this hard time. It may help you to keep your team employed as well.
  • Ask any trusted outsiders for pivot points.
    • Maybe your marketing specialist has helped another business through a time of crisis. Your accountant may have some advice. Sometimes it is hard to see the big picture from the inside.  
  • Be honest with your vendors about the situation. Ask for longer terms with no or little interest for the time being. This can help your cash-flow.
  • Read and learn as much as possible about the situation at hand (and make sure your information is coming from credible sources).
    • Use the information that you gather to help you guesstimate how long the situation is expected to last, how much of an economic impact this will have on your business, and to help you make a game plan.
  •  Apply for low interest disaster loans (if they are available and needed).
  • When major disasters strike and a state of emergency is declared, the Small Business Administration (SBA) will sometimes release funds to approved businesses to help the business survive and keep people employed. Follow: https://www.sba.gov/funding-programs/disaster-assistance for assistance. If your bank is an SBA lender they may be able to help you apply.

4. CHOOSE TO LEAD

Being a leader is not always easy, especially during a difficult time. If you do not step up and lead your team then they may become uneasy, less productive, and end up costing the company.

  • Be honest with your team of employees about what is going on and what your game plan is to make it through the challenge at hand. Share your new goals with them so that they can get on board. It is essential that employees feel that they are a part of reaching these goals.
  • Be armed with as much information as possible. Learn what the government is mandating for small businesses (if anything). If you know of timelines then share these with your team.
  • Be flexible with your team.
    • Disasters can be frightening and even devastating for anyone. If anyone is apprehensive about the situation then ask how you can help, get them answers when you can. If someone has lost a loved one or has to remain home to help a family member do your best to be flexible with them. Offer paid leave if you are in a position to help them. Doing so well likely keep your team loyal to you and prevent any kind of resentment.
  • Teach and explain what you know to your team and to other business owners that you are in contact with.
    • If laws temporarily change then communicate these to your team and other business owners so that they are aware and can make the needed changes.

5. PREVENT LAYOFFS (IF AT ALL POSSIBLE)

Preventing layoffs can be difficult considering that payroll is often one of the largest expenses that a small business will incur. I recommend being open with your team about what you are doing in order to prevent layoffs. This may give them peace of mind and make them more flexible. If they know that they must all work together and be flexible in order to keep everyone employed they are more likely to be on board with your efforts.

  • Stop using contractors (where possible). If work can be done in-house by someone on your team use the funds that you would have paid the contractor to pay your employees.
  • Cut out overtime. If your employees regularly work overtime this costs you a great deal. Eliminating overtime can save the business money and help you keep all of your team.
  • Cut hours or shorten the work-week. Both options will have the same desired effect: hourly employees will not be working as many hours and will not be paid for as many hours as usual.
  • Pay-cuts: this is a touchy subject and a hard pill to swallow. As a business owner you may have to take the first pay-cut (assuming you pay yourself at all). If you inform your team that everyone can remain employed if everyone takes a small and temporary pay-cut they may not like the idea but will be willing to work with you.
  • Temporarily reduce your operating margin. Cancel unneeded subscriptions and reduce unnecessary spending. If you do not NEED new tools or equipment then wait to make those purchases.
  • Ask for input from your team. You can even have them all vote on which measure to take to prevent the layoffs. This will help make them feel in control of the situation.
  • If layoffs are unavoidable then be sure to offer your support, guidance, and job searching assistance to those who you must layoff. Assure them that you will reach out to them if and when their position reopens. Notify them of any open positions that you hear about and even put a recommendation in for them.

6. BE POSITIVE

  • Your positivity will rub off onto others around you and make others feel as though there is light at the end of the tunnel.
  • Try to find humor in the situation where you can.
  • Be kind to others be it customers, business partners, your resources, or employees.
    • This is not the time to point fingers about who could have done what to make things better now. The focus is to make it through this crisis and to learn from it. It is likely that most people around you will be as stressed as you are; being unkind will not solve any problems and may create more.
  • Make a daily list of what you are grateful for. Be is business or personal. Encourage your team to do the same.

photo credit: wuestenigel Alarm clock with handwritten text Time to Adapt on clipboard via photopin (license)