The economic downturn has left us trying to figure out the best course of action. How do we navigate through this uncharted territory?
Before you make your next move, ask yourself – Are you complying with the course, or are you complying with the concern?
Let’s use the pandemic to illustrate. To comply with the course is to be proactive – practicing social distancing, washing your hands and avoiding large gatherings. The concern is our reaction – when you overexert yourself in a behavior that is of no benefit (e.g. all the toilet paper), while simultaneously ignoring the course. There is no benefit to purely reacting, because then you are disregarding the course that will inevitably help you.
This scenario translates into your business as well. You’re likely attempting to go about business as usual in unusual circumstances. However, you must adjust your business and deliver your services or products in a way that addresses the circumstances around you.
If you think you should take on debt, take out loans, get more credit cards so you have more money to keep your business afloat, please reconsider. More money may (and I mean may) help in the short term. But remember, money will only carry your business as it is today, without making the real adjustments you need in the long term. Besides, you don’t want to take on the burden of added debt.
Instead, analyze your business and define what the core competency is that you deliver. How will you adjust your existing offering to the current environment? Maybe this means moving to online services and training, virtual conferences replacing in person ones, or consultations for future endeavors with clients. Invest in a new method to serve your clients by asking them how you can serve them in a way that will help them right now.
Ask yourself one more time. Are you responding to the concern to barely survive, which will have long term detrimental consequences? Or, are you responding to the course in the best interest of your business and sustain it?
Great insights and love the shirt.
I appreciate this timely message. Using the Profit First model, I have been able to significantly reduce debt. My plan to be debt free this year is on hold as I am working to balance my long term goals with the immediate health crisis. I am VERY reluctant/adverse to taking on debt. Thank you for your encouraging and wise words to search other avenues to sustain the business at this time.
outstanding advice. thank you.
So, I’m a relatively new start-up. We’ve only been open 18 months and we were just starting to gain real momentum. In NYS we are completely shut down for now. I had several ideas in mind to change course in our product delivery while people were home, but now we cannot move forward due to State mandates. The questions is, if we take out an SBA relief loan, won’t that help cover overhead expenses while we’re shut down? I was thinking we may actually end up in a better financial position because a low interest rate loan could help me reposition some of our current higher interest debt incurred during start-up, like my business credit card for instance, and help cover overhead costs until business can resume. Now I’m worried that’s the wrong course of action.
Thank you I really needed this video!
Great guidance Mike. Thank you.
Thanks for the short presentation Mike. It confirmed my approach to develop additional online courses for my grant writing tuition to replace direct instruction via physical workshops which have now ceased.
Thank you for taking the time to share your calming words about complying with the course, or complying with (focusing on) your concern!
Hi Mike,
I am from south Africa! As you know we are 2 weeks into the pandemic! I am in the function hire industry which have been hit very hard with all the restrictions! My core business is festival i have about 7 a year most have postponed but some have cancelled!
95% of all events for the year have canceled or postponed in 24 hours since our presidency announced restrictions!
Here is what i have done so far.
• i have contacted all client to see if They are willing to continue with the event or if postponement is possible before cancellation
• My staff have been sent on paid leave(what they have a available) and after that on unpaid leave.
• The staff are on a rotational stand by basis for events not canceled at this stage! My key staff are working from home
• My office managers are working from home.
Now we wait for government assistance. As income is at virtual standstill
Anyone have more advice on how to be proactive!
Thanks Mike. great reminder: don’t invest in debt invest in the pivot.
Any suggestions for business owners in industries that are mostly shut down, I.e., restaurants, entertainment, real estate and mortgage brokers, and event and wedding planning?
Thanks, Mike! What webcam do you use? Would love to know the set up you use to record these. Thanks!
Mike, Thank you so very much for the GREAT information. During the uncharted water we are experiencing in todays times your wisdom and knowledge is apprecited more than ever. Wish you & your family lots of continued success, stay well and stay healthy.