In these challenging times, all of us in business must change our plans and the way we operate in the “New Normal”. Here are five tips that you can use to keep yourself on track to getting your business back to something like what it used to be.
- Don’t try to get everything back
Back in March 2020, when the whole world shut down, we did not know where business was going to go.
Many of us decided that we needed to drastically cut costs. So, we decided to cancel as many things as we could that we stopped things that were nice-to-have but not needed.
In consultation with my accountant, I realized that it was not a good idea. The first thing I realised was that I needed was my services from John. he agreed with me I needed to save as much money as possible to protect my profits. We analyzed all my business areas. John and I looked at every single cost center that I have.
Sure enough, there was a lot of stuff in there that I could cut back on, and rightly so. What’s nice to have is not always must have. But as we focused on the areas of our business that were more profitable, the unexpected outcome was that even though my top line sales were down, my bottom-line profit is WAY up.
Therefore, don’t cancel out of panic. We are all learning what we can live without, which is good not only in business but in our personal life as well. The important point is that you think it through. Be intentional and keep your eye on the long game. Don’t throw out something that you will need down the road, when it might cost you a lot more to re-instate it.
- Don’t be afraid of your numbers
The best tool in any business is to have a cash flow forecast. This simple but so wonderful tool that gives your business a guide to where they are going. So, you need to provide three forecasts for the next year.
- A current one
- A worst-case scenario
- And a best-case scenario
You will probably find that even in the worst case, you will still be in good shape. Having this data will give you the confidence to continue in your current track.
There’s lots to keep you awake at night. Even if you’re nervous about what you might find. Get your accountant to help you collect all the data you need to get a big picture view of your business, your profits, your cash flow, your future. Don’t make any judgement or blame about what you find. Just have service, clarity, and hope for the way forward.
- Give your business some TLC
Hopefully, you’ve got a few dollars of sales under your belt. You may still have some employees. You know you’re not doing what you could be. That’s where your accountant comes in. You owe it to yourself for all the years that you’ve invested in your business, to use them. Hopefully, they will go into bat for you. They will find you the funding, the resources, the ideas, and the strategies that you need. The result will not just help you to survive this pandemic. But to survive AND thrive.
- There is help for you
We all know that being a business owner can be lonely. If we thought we had reservations about talking about money before, what about now? We cannot go to a conference and have no side conversations. No bumping into that person you always trusted for excellent advice. So, analyzing, brainstorming, inventing, and action-planning is both therapeutic and bottom-line, ROI-style rewarding.
- You have what it takes
We may not feel like we’re rocking this catastrophe as our best selves, but we keep waking up and getting on with things, regardless. And we’re getting wiser, more discerning, and more resilient each day.
When we come out of this season, (and who knows when that’s going to be) you’re going to come out leaner… but stronger and healthier and happier, finding more balance, having less stress. So, my friends, take it from one business owner to another: if anyone offers help, grab it!