Business owner 911 response to COVID-19

Below is a list of response business owners can take to weather the current economic system.

  1. Cash. Cash. Cash. Know where you are and if you don’t fore­cast cash, start. Build a worse and best-case sce­nario.  You can devel­op a cash head­room report using our tem­plate.
  2. Build a mod­el of your rev­enue streams that are at risk. Decide of who in your client/customer base might choose to stop using your ser­vices or buy your prod­ucts in this down­turn. High­ly neg­a­tive impact is expect­ed in these industries: 
    • Edu­ca­tion
    • Hospitality/Lodging
    • Group Trav­el
    • Warehouse/Distribution
    • Mass cul­tur­al events (con­certs, sports, etc.)
    • Brick-and-mor­tar retail space
    • Civic Insti­tu­tions
    • Per­son­al Ser­vices (salons, spas, med­ical aes­thet­ics, etc.)
  3. Con­sid­er sup­ply chain dis­rup­tion. This you may have already expe­ri­enced. Look for alternatives/ back­ups.  Inform clients and cus­tomers if delays are anticipated.
  4. Apply for an SBA dis­as­ter loan. Just because you apply doesn’t mean you have to take the loan, but if you apply ear­li­er it is more like­ly to be funded.
  5. Ask your bank for 6 months of inter­est only on your exist­ing loans. A 9 to 12 month peri­od would be ideal.
  6. Refi­nance any debt, such as real estate loans, where the cur­rent rates are .5–1% or more below your cur­rent rate. Lock in as long as you can. Once inter­est rates rise, you want the cur­rent low rates set.
  7. Devel­op a spe­cial pro­mo­tion for gift cards, such as buy four $25 gift cards and get a $25 gift card free. This brings in cash today.
  8. Devel­op mar­ket­ing plans for those indus­tries that will thrive in this envi­ron­ment, including: 
    • Any rev­enue mod­el with min­i­mal social interaction
    • Food, house­hold sta­ples, medi­al delivery
    • Pri­vate trans­porta­tion: ground and air
    • Online retail­ers
    • Home deliv­ery
    • Online enter­tain­ment
    • “Cures” (valid as well as fake)
    • Warm weath­er open venues
    • Urgent Care
    • Zoom/­Go-to-Meet­ing/Web-ex, etc.
  9. Call your insur­ance provider and see if you have busi­ness inter­rup­tion insur­ance that cov­ers this type of event. If it does, file a claim. If it does not, con­tact your state and fed­er­al leg­is­la­tor to let them know of your impact. Encour­age oth­ers in your indus­try to do the same. The squeaky wheel more often gets the grease.
  10. Com­mu­ni­cate with your team. When the recov­ery comes you want all you’re “A” play­ers still on your team.
  11. Remem­ber there are two dis­rupters hap­pen­ing simul­ta­ne­ous­ly. COVID19 is one and is fore­most on people’s minds.  The sec­ond is the Saudi/ Rus­sia oil dis­pute. The lat­ter will like­ly have longer term con­se­quences. If your cost struc­ture ben­e­fits or is hurt by oil, fore­cast the poten­tial impacts.
  12. Get cre­ative and inno­vate. In times of slow eco­nom­ic demand, use this time to make your com­pa­ny bet­ter in the long run. Improve your process­es, increase effi­cien­cy, eval­u­ate sup­pli­ers and tech­nol­o­gy to low­er cost, build remote work­ing strate­gies and rhythms, engage in team train­ing which pays off in the long term, learn to use your exist­ing tech­nol­o­gy better.
  13. Ral­ly your team and hold ideation ses­sions. Peo­ple love help­ing, so give them an oppor­tu­ni­ty. You might be sur­prised at what they come up with.
  14. Stay out of fear. No one makes good deci­sions in fear. Use your inner guid­ance to stay ground­ed with med­i­ta­tion, time in nature, yoga, con­nec­tion (vir­tu­al) with oth­ers, what­ev­er sup­ports you.
  15. Remem­ber, there is good news out there. Cas­es in Chi­na are already dimin­ish­ing.  In fact, the gov­ern­ment is telling com­pa­nies reopen in areas where few new cas­es are crop­ping up.  This leads them to believe the virus life-cycle is rel­a­tive­ly of short duration.

Fun fact: In the 2008 reces­sion none of the MACKEY™ Pros­per for busi­ness clients went out of business.