There’s no doubt our COVID-19 Pandemic has created daunting and unprecedented challenges for all of us. Whether its family health and safety, uncertainty about the future, finances, jobs, or small business – there is no playbook to refer to! This is a “dig in, roll up your sleeves, get to work” kind of situation for the small business owner.
As an entrepreneur, serving as a multi-unit franchisee for a health and wellness program, as well as a John Maxwell Certified Coach, Speaker and Trainer, combined with a thirty year Supply Chain career with Fortune 100 companies, I’ve developed six critical steps that I’ve used with success to manage through the current pandemic. My gym in New Jersey has been closed for the last nineteen weeks, but the six critical steps have been what’s kept the business alive.
Before we review the six critical steps, it’s important to understand how we need to show up as leaders as well as business owners, not just one or the other. They must co-exist! Leaders are influencers, and this is done through effective relationship building and communications. The effective leaders have the following traits, as stated by John Maxwell:
Ø They grow DAILY
Ø They get uncomfortable – we grow when we step outside our comfort zones!
Ø They are willing to fail, and learn from it
Ø They are authentic and great communicators
Ø They are available for their customers
There will be three consistent themes you MUST apply when going through the six critical steps, and they are: take action, focus on continuous improvement, and ask for help.
The Six Critical Steps for small business owners to apply during a crisis are (in no particular order):
1. Communication
2. Pivoting / re-inventing
3. Financial acumen – be intimate with $$
4. The right beliefs / mindset
5. Operational execution
6. Decision making
Communication
“Hey customer, I’m still here to serve you!” Your ability to communicate with customers, clients, members, or patients is the foundation for your relationship with them. During this pandemic, one of the most critical stakeholders for communication is the customer, and this comes through many channels. Staff communications and key business partner communications are also necessary and need to be managed continuously throughout a crisis.
Pivoting / Re-inventing
First ask yourself, what do I need to do differently and what added value can I provide to my customers under the circumstances? This is a time to try something new, it may be your only option! Remember the themes: take action, continuous improvement, and ask for help…
How we’ve done it with my health and wellness business, immediately upon closing, was to offer virtual classes. For restaurants, maybe it’s offering curbside pickup and delivery options, for the realtor it’s virtual home previews and also conference / video call closings with electronic signing. Pool companies are offering above ground pools, because no in-ground pools are available. They have no choice – that’s pivoting.
Financial Acumen
“Follow the money”. Probably the best advice I ever got. You absolutely must be strong in this area, so that you can fully understand flow of cash in and out, project forward to manage risk, leverage loan and deferment options, and minimizing ALL expenses with a brutally disciplined approach. The key here: if you are not strong in this area, find someone who is (this is the “ask for help” part…)!
Beliefs / Mindset
This is all about perspective and mindset. You MUST believe in yourself and your ability to overcome. FROM DAY ONE! Accept that you will have fear due to uncertainty but you must move past the fear and control what you can control, and TAKE ACTION! Take action before you have it all figured out. Don’t wait for it to be perfect (the “continuous improvement” theme…). Finally, I have a great attitude because I practice gratitude and daily affirmations. If you are not in the habit of doing this, I strongly suggest you start now.
Operational execution
This is all about focusing on the critical activities that tie directly to providing the best service for your customers. That means, the activities and staffing necessary to deliver this value to your customers at a manageable cost. Make sure you are doing the right work, with the right people and right frequency, which gives you the right payoff. And be sure to eliminate ALL non-value added activity.
Decision Making
Make one! Don’t be paralyzed by the situation you’re dealing with. Making a decision will start the process of getting you closer to your desired outcome, even if it includes some failures along the way. After all, that’s how effective leaders learn, right?! Good decisions are based on data and facts – NOT emotion.
One thing that may be imminent for some small businesses as a result of the pandemic, is that what was before may not be in the future. The way for you to have the best chance for success, not only navigating through this storm but to survive AND thrive in the future, is to apply specific actions against these six critical steps.
For more in-depth review of these steps, accompanied by a self-assessment of the actions you can take to manage through a crisis, contact me for an upcoming seminar.
