The Kickass Entrepreneur
  • About
  • Blog
    • All Blogs
    • Create Wealth (Investing)
    • Entrepreneur Interviews
    • Featured Top Posts
    • Growing Profits
    • Growing Revenues
    • Marketing
    • Positive State of Mind
    • Real Estate Investing
    • Retirement
    • Sales
    • Selling your Business
  • Book
  • Courses
  • Podcast
  • Resources
  • Contact
The Kickass Entrepreneur
Subscribe
The Kickass Entrepreneur
  • About
  • Blog
    • All Blogs
    • Create Wealth (Investing)
    • Entrepreneur Interviews
    • Featured Top Posts
    • Growing Profits
    • Growing Revenues
    • Marketing
    • Positive State of Mind
    • Real Estate Investing
    • Retirement
    • Sales
    • Selling your Business
  • Book
  • Courses
  • Podcast
  • Resources
  • Contact
  • All Blogs
  • Growing Profits
  • Growing Revenues
  • Growing Revenues

Managing Your Small Business Through The COVID-19 Crisis

  • March 16, 2020
  • 3.3K views
  • 7 minute read
  • Jeff Wiener
Managing Small Business Through Covid-19
Share
Tweet
Share

I must have received at least 50 emails over the last week from different companies letting me know what they’re doing about the COVID-19 coronavirus.

The gist of all of the emails is basically the same. They’re keeping their networks running, tables clean, sanitizers close by, and staff safe.

Regardless of how you look at this, the world is changing, and fast. As a business owner, you need to start thinking; not just about the way you choose to communicate with your customers and staff during a crisis, but about the contingency plans you’re going to layout for your small business. 

So, before I dive into communication and contingency plans, let me stress that first and foremost, you need to look after your family’s health and wellbeing.

Managing Your Business Through a Crisis

COVID-19 is a black swan event. If you haven’t already, you need to prepare your business for crisis management. This becomes even more complicated with school closings, as you now may find yourself having to look after the kids while making sure your business is still running smoothly.

As much as I would like to think that this problem is going to go away in the next week or two, I, unfortunately, believe that we’re looking at a one- to two-quarter disruption.

Every business will be impacted. You’ve already dealt with some of the repercussions. Your staff has asked you what the business is going to do. Your customers have likely already done the same, so, you need to have a game plan. I started this article by saying that I’ve already received at least 40 emails from different companies letting me know how they’re handling the coronavirus. As tiresome as these emails are becoming, what they signify is that these companies have formulated a plan. Your company needs to do the same.

Communication Plan 

Have you spoken to your staff? Customers? Do you have a game plan? 

And by a game plan, I’m not speaking about how you’re going to clean the bathrooms and kitchens better or provide more hand sanitizer, but more importantly, how you’re looking after your network, what your staff contingency plans are, how you’re handling work from home, and so on. 

One clever business owner, Amit Jhas, the CEO of Nown, put together a staff document that laid out what you could expect as the virus circulated through the community. He broke their action plan into 4 phases as follows:

  • Phase 1: greater than 25 confirmed cases of COVID-19 in Ontario
  • Phase 2: greater than 100 confirmed reported cases of COVID-19 in Ontario
  • Phase 3: greater than 1,000 confirmed reported cases of COVID-19 in Ontario
  • Phase 4: greater than 10,000 confirmed reported cases of COVID-19 in Ontario 

In each phase, he discussed how travel plans were going to change and laid out the remote work and communication policies.

Here’s an example from phase 4:

“Management shall immediately establish a Critical Support Team Committee who shall prepare and deliver an Emergency Response Plan in the case our platform service is down; such plan shall detail the responsible team members and at least 2 other backup members;”

The document is 13 pages, and very well thought out. I am resharing this document with Amit’s permission. Nōwn COVID-19 Response Plan and Work From Home Policy

Business Plan 

Creating a business plan for the duration of the crisis is significantly more difficult to address.

How are you going to manage your business through a possible 3- to 6-month cash flow and sales crunch?

Do you have enough of a cash flow cushion to support your business?

The answer to this will clearly depend on the nature of your business and what your cash position is today. 

If you’re in the travel, restaurant, or hospitality industry, your business is going to be impacted significantly more than a SaaS business supporting B2B customers.

As an aside, my wife and I were in Panama last week (I am now home and 5 days into a 14-day quarantine), and of the total 100 rooms available, only 2 were booked. The silence was eerie.

Regardless of your industry, you need to address the cash flow.

No cash means no business, and when you need the cash most is most likely when it’s hardest to access. 

Prepare a business forecast and look at what would happen to your business with a 10% and 20% drop in sales. Include the presumption that your AR could spike (as your customers may also be experiencing cash flow issues), which will make collections all the more difficult.  So what does your cash position look like if your average AR collections go from 35 days to 55 days?

Now’s the time to amend your business forecasts and adjust your capital expenditures. 

Cash is King 

You’ve heard the expression cash is king. Well, it couldn’t be truer today. 

cash is kingThe players with the most cash stand to do best in the near term. First, you’re in a better position to ride out the storm, and even more importantly, you’re in a better position to seek out opportunities that will arise. 

Perhaps your competitor will be looking for a quick buyout.

Perhaps some awesome sales or technical talent that you’ve been wanting to hire for a while has just come to market.

Remote Work

I’m presuming that your business has some form of a remote work contingency plan—for example, IP phones for workers to work from home and video conferencing for work collaboration. 

Now’s the time to enact those contingency plans. 

I sold my telecom company in 2017, but I formerly ran and sold IP voice and video communication equipment that, among many other things, enabled companies to host their communications equipment remotely.

Hopefully, your business has IP phones for your remote staff with cloud-based CRM and email communication. If so, then now’s the time to make sure everything is working properly. If not, it isn’t too late to pick up a few hosted PBX extensions. Although I am clearly biased, Digitcom does an amazing job. 

Your Staff 

You need more than a work-from-home policy. Remote phones, video communication, hand sanitizer…you’ve heard it all before. 

Your staff is looking for answers to bigger and more important issues. 

  • Will they be paid?
  • How long can the business go on should sales slump 20% or even more?
  • What is the financial position of the company?
  • Will there be any layoffs?
  • How is the business going to mitigate against a potential drop in sales? AR?

 Your staff might not be asking you directly, but those are the things they want to know. Your staff is dealing with their own set of health, family, and anxiety issues around the current pandemic. Allay their fears by getting in front of the problem. Be upfront and honest. That’s what transparency is all about.

Suppliers

During the financial crisis in 2008, many of our vendors offered steep discounts for bulk purchases. We were able to acquire products for 30%—and even up to 50% off. If you have the cash, now’s the time to bulk up on larger purchases and even offer some of those discounts to your customers.

Government Assistance

Many governments, municipal, provincial, state and federal, are making announcements that they’re going to support small businesses and workers during and after the crisis. What does that mean in your jurisdiction, and are there any programs that you can take advantage of?

Be a Leader

As the CEO of your business, you need to provide strong leadership. Yes, communication is important. That’s what your staff, customers, and suppliers see.

The hard work is the work that’s being done behind the scenes. The contingency plans. Thinking of where the puck is going to be and skating there. Skate there now—don’t wait for this to get any worse.

The following is a quote from Bill Taylor:

 “The true mark of a leader is the willingness to stick with a bold course of action—an unconventional business strategy, a unique product-development roadmap, a controversial marketing campaign—even as the rest of the world wonders why you’re not marching in step with the status quo. In other words, real leaders are happy to zig while others zag. They understand that in an era of hyper-competition and non-stop disruption, the only way to stand out from the crowd is to stand for something special. 

Figure out your special, and get there.

Conclusion: 

The market and people, in general, tend to panic during uncertain times. Just take a look at the grocery store shelves right now.  

Society acts irrationally when faced with the unknown.

If you remain calm, have a plan prepared, and think pragmatically, then you will be in a position to take advantage of those opportunities.  

The time to prepare your plan is now. Not in 6 months when you’re down to your last few dollars and are also panicking.

There is a phrase in Malay that goes, “Prepare an umbrella before the rain.“

Well, the clouds are coming in fast and the weather is looking ominous. Now is the time to have your plan prepared, and keep dry. Good luck.

If you liked this post, you might also like this one: Here’s How To Buy An Apartment Building And Make A Whopping 110% In Three Years.  You should also consider subscribing to my blog. I publish one article a week on small business and wealth creation.  You can subscribe here.

Also, I published a book during the summer of 2018, “The Kickass Entrepreneur’s Guide to Investing, Three Simple Steps to Create Massive Wealth with Your Business’s Profits.” It was number 1 on Amazon in both the business and non-fiction sections. You can get a free copy here.

Thank you for your interest in THE KICKASS ENTREPRENEUR'S GUIDE TO INVESTING. Three Simple Steps to Build Massive Wealth with your Business's Profits. Please check your email to confirm the book download. Form: 400529

There was an error submitting your subscription. Please try again.

Related Posts:

  • Managing Your Monthly Business Expenses During the COVID-19 Crisis…
  • Maximizing Your Insurance Coverage against Losses Sustained in the…
  • Is Your Business Set to Win or Lose in the New Normal? Position…
  • There’s Never Been a Better Time to Open a New Business Than During…
  • Post-COVID-19 Business Recovery with the Help of Invoice Financing
  • Prepare Your Business, Life, and Wealth with COVID-19 Insurance
Share
Tweet
Share
Jeff Wiener
Jeff Wiener

Jeff sold his company to private equity in 2017 and is now semi-retired. Jeff spends time traveling and with his family, writing this blog, managing his real estate portfolio of apartment buildings,  overseeing his investment portfolio, investigating angel investments, coaching other entrepreneurs, and managing his private equity holdings. Jeff is currently on a couple of boards, one for profit, the other not for profit, and now helps entrepreneurs grow their business, profits, and ultimately, create wealth.

You May Also Like
man at construction site
View Post
  • Growing Profits

4 Common Contractor Mistakes: How to Avoid Them

  • January 27, 2021
  • Meg Rivera
Girl talking over the phone while using the laptop
View Post
  • Growing Revenues

Registering a Business: a Step-by-Step Guide

  • January 25, 2021
  • Meg Rivera
stock trading
View Post
  • Growing Revenues

What is the Future of Stock Trading?

  • January 21, 2021
  • Meg Rivera
entrepreneur
View Post
  • All Blogs

How to Become a More Successful Entrepreneur

  • January 15, 2021
  • Monica Serreon
online presence
View Post
  • All Blogs

Targeting Your Online Presence to Other Locations – Easier Than You Think

  • January 14, 2021
  • Monica Serreon
online business
View Post
  • All Blogs

7 Online Businesses Set to Thrive in 2021

  • January 14, 2021
  • Monica Serreon
accounting
View Post
  • Growing Revenues

7 Tips for Boosting Efficiency in Your Accounting Department

  • January 13, 2021
  • Monica Serreon
The Top 1% of Wealth Canada
View Post
  • All Blogs
  • Create Wealth (Investing)

The Top 1% of Wealth Amounts for Canadians in 2021

  • January 8, 2021
  • Jeff Wiener

Join 6,472 Entrepreneurs That Get My Business Building and Wealth Creation Posts by Email

I can teach you how to build a successful, profitable business, and turn that into millions in personal wealth.

Thank you for your interest in THE KICKASS ENTREPRENEUR'S GUIDE TO INVESTING. Three Simple Steps to Build Massive Wealth with your Business's Profits. Please check your email to confirm the book download. Form: 400529

There was an error submitting your subscription. Please try again.

We won’t send you spam. Unsubscribe at any time.

Recent Posts
  • man at construction site 1
    4 Common Contractor Mistakes: How to Avoid Them
    • January 27, 2021
  • Fax-Ready Multifunction Printer 2
    10 Factors to Consider When Buying a Fax-Ready Multifunction Printer
    • January 26, 2021
  • cybersecurity 3
    How to Keep Your Company and Employee Data Safe
    • January 25, 2021
  • Girl talking over the phone while using the laptop 4
    Registering a Business: a Step-by-Step Guide
    • January 25, 2021
  • stock trading 5
    What is the Future of Stock Trading?
    • January 21, 2021
Featured Posts
  • how to become wealthy
    The Entrepreneur’s Secret to How to Become Wealthy and Build a Personal Fortune
  • Sell me this pen, Wolf of Wall Street
    Sell Me This Pen. I Tackle the Wolf of Wall Street Sales Riddle. Do You Know the Right Way to Sell the Pen?
  • what net worth makes you rich?
    What Net Worth Makes You Rich? The Average Net Worth to Make it Into the Top 1% and How to Get There
Categories
  • All Blogs (207)
  • Canadian Financial Products (3)
  • Create Wealth (Investing) (55)
  • Entrepreneur Interviews (10)
  • Featured Post for Main Menu (4)
  • Featured Top Posts (23)
  • Financial and Investment Calculators and Economic Data (12)
  • Growing Profits (19)
  • Growing Revenues (79)
  • Growing Revenues (43)
  • Marketing (14)
  • Positive State of Mind (35)
  • Real Estate Investing (12)
  • Retirement (16)
  • Reviews (6)
  • Sales (6)
  • Sell Me This Pen (3)
  • Selling your Business (15)
  • SEMrush (1)
  • Top Products (3)
  • Uncategorized (38)
Follow us
Author
Jeff Wiener
Jeff Wiener
Jeff sold his company to private equity in 2017 and is now semi-retired. Jeff spends time…

    CHECK OUT MY BLOG, AND SUBSCRIBE

    about
    The Kickass Entrepreneur

    Expand Your Business, Improve Profits, Create Wealth

    Expand your business, improve your profits, and create wealth. Each one of the three can be elusive goals. Follow the right steps, and you, too, can create financial independence. It is possible … you just have to take the right steps.
    NAVIGATION
    • About
    • Blog
      • All Blogs
      • Create Wealth (Investing)
      • Entrepreneur Interviews
      • Featured Top Posts
      • Growing Profits
      • Growing Revenues
      • Marketing
      • Positive State of Mind
      • Real Estate Investing
      • Retirement
      • Sales
      • Selling your Business
    • Book
    • Courses
    • Podcast
    • Resources
    • Contact
    TAGS
    apartment BATNA Business business failure business growth business sale Capitalization Rate CAP Rate cash cash flow Creating Wealth Discipline entrepreneur entrepreneurship excel goal setting Growing Business investing investment real estate M&A marketing Marketing KPIs Mergers and Acquisitions | M&A | Entrepreneur Blog Millionaire millionaire next door mistakes MUR Negotiation Peter Principle Profit profitability real estate retirement revenue Revenues sales sales management scaling business Semi-Retirement Blog | Entrepreneur Blog | Small Business Blog small business Stagnant stocks success Thomas Stanley wealth
    RECENT ARTICLES
    • man at construction site
      4 Common Contractor Mistakes: How to Avoid Them
      • January 27, 2021
      • No comments
    • Girl talking over the phone while using the laptop
      Registering a Business: a Step-by-Step Guide
      • January 25, 2021
    • stock trading
      What is the Future of Stock Trading?
      • January 21, 2021
    • workplace
      4 Ways to Protect Your Employees in The Workplace
      • January 14, 2021
    • accounting
      7 Tips for Boosting Efficiency in Your Accounting Department
      • January 13, 2021
    • cryptocurrency
      The Value of Trading and Investing in Cryptocurrency
      • January 8, 2021
    The Kickass Entrepreneur
    • About
    • Coaching
    • Book
    • Blog
    • Contact
    • Privacy Policy
    • Terms
    • Disclaimer
    • Facebook
    • LinkedIn

    Input your search keywords and press Enter.