4 Steps to Saving the Life of Your Business
By: Brent Butler
Tags: Covid 19, Sba Loans, Business Strategy, Small Business, Business

When a fire breaks out there are two types of people: those who head in the opposite direction, fleeing to what they think is safety as the fire burns through the city; and those who run toward the fire, trying to help their friends and neighbors, throwing buckets of water on the growing flames, feeding the firemen, housing the victims. I like to think that underneath the laziness, complacency, opulence, and division that has grown like a cancer in our nation, there are still people ready to run toward the blaze. Besides the first responders, health care heroes, and essential employees (I’m looking at you grocery store checkers), the American entrepreneurs and business owners are also being called to action. Contrary to what you may think, as your organization’s revenues plummet and your employee base shrinks, now is the time when America needs you, more than ever. Now, is your time to rise to the occasion. So, summon all your strength and ingenuity and help yourself by helping others. Here’s how:

1. Stop the Bleeding: to stop the bleeding you’re going to have to be a leader (and you’re not going to get it all right — get over it). Cash flow is the blood of an organization, so you’re going to have to get your hands around it, and it’s not going to look like it did in the past. If you have an open credit line tap it. Get the cash in your account. Go over all your books and get rid of non-essential expenses. Take a personal hit first — cut, forego, defer you salary and tap those personal savings, and let your staff know you’re doing it (leaders eat last). Streamline payroll: there may be programs in your state like Work Share Oregon’s unemployment plan. Use it. The Work Share plan allows you to reduce hours for staff up to 40% and a partial unemployment benefit kicks in. Yes, it sucks to reduce hours, but it’s far better than throwing people out on the street in a time of crisis. Hunt down loans. Right now there’s $50 billion in SBA Economic Injury Disaster lending, providing a super low interest long term loan for affected small businesses. Get in line now (we can help get your company ready). And lastly, if you absolutely must, lay off non-essential staff. Create a Crisis Mode Pro Forma (we can help here too). Be careful here and know you are adding to the problem by laying people off and only cut staff who aren’t critical to your business function (and let them know they will be hired back as soon as humanly possible — you have a plan).

2. Start the Breathing: You’ve bought yourself some time, but not much. Without air (new revenue) coming in, the body of your company will soon die. Let me be very clear here, this is startup mode all over again and you’re going to have to get creative. I guarantee that life is going to go on after COVID-19 and people, cooped up in their homes, dealing with difficulty, mourning losses, and living in chaos and fear, are still going to eat, sleep, take care of their children, recreate, and shit. However, it’s going to be different. Anticipate the different. What can you create, make, or offer that is a variant or even totally different than what you do now? Get your team involved. Brain storm with your team. No idea is stupid. One of my clients owns a gym in San Francisco; he called me stressed. We developed their business plan back in 2018 and they got funded. He was just cresting into solid and sustainable revenue and now his brick & mortar gym is shuttered and he rightly fears the coming membership drop. I advised, “People are going to still need to exercise aren’t they? Diet and exercise is the best way to keep a strong immune system isn’t it? Why aren’t you creating home gym kits with Kettle Bells and stuff and doing online training sessions? Why aren’t you reminding your clients on social media of the importance of fitness to building their immune system? You could be selling new product while maintaining membership. You could be helping. Now, go get this shit done.” Think big and bold and new. The customers are still out there, it’s just going to be different (and it may never be the same again, but let’s leave that to another post).

Let me tell you, I’m a busy CEO dealing with all the same crap everyone else is, locked in my apartment with a 13-year-old, and there are a thousand things I wish existed that would keep us safe, healthy, and entertained. Go make those things.

3. Protect the Wound: Okay, the dying corps of your organization just took a gasp of air and the color ran back into its face, but the job ain’t over. You’re likely very scattered, taken on lines of credit, owe your landlord money. You need to bring back those employees you can. You need to bring everyone’s hours back on line as soon as you can. You need to pay yourself.

4. Treat for Shock and Monitor the Vitals: You’ve been operating on a razor’s edge, your team has been through the ringer, and you’re just about out of personal savings. You’re going to have to take care of yourself. As soon as you pull out of this nose dive, you need to start exercising, eating, and sleeping well. You need to write the business plan for this revised company and devise a road map for the future. Watch the changing economic indicators and keep abreast of industry news, regulations and incentives. Enlist volunteers and make them specialists. They can survey the landscape for you with Google Alerts and report back with important developments. And above all, give accolades where accolades are due. You didn’t do this by yourself. Thank your employees, and thank vendors and landlords that let you slide on accounts payable and rent. Get right with everyone.

If you run from the problem you will only die tired. Turn around and face this fire head on.

Semper Fidelis.