Welcome to Uncover Wealth Radio, Episode 83, where I am speaking about how to keep your business going during coronavirus. So let’s dive in.
How do you keep your business going during coronavirus? The world has been hit with this incredible pandemic and it’s having massive, massive knock on effects for people all over the globe, but also for small business owners. And we are seeing from a lot of people that we’re speaking to that their revenue is suddenly massively decreased or they’re getting a lot of cancelled appointments, cancelled prospective meetings, all those kinds of things. So what do you do just now when we’re in the midst of this situation where people are very uncertain at the moment and they’re not sure what’s going to happen to perhaps their own businesses or their own livelihood, and therefore potentially not buying from you or cutting down significantly what they do?
So there really are two options if you want to business to survive this time period. Now, some people might just say, “You know what? I wasn’t enjoying it anyway. I didn’t like my business. I’m going to use this as an opportunity to shut down and do something completely different.” And that’s okay. This video is about what you want to do if you want to have a business that exists in the future. And there are two options, one option is to hibernate the business. If you have a business where you are looking and you were saying, “During this time, I have no way of generating revenue. I’m just unable to generate any revenue at all.” This might be a business where you can only serve face-to-face. There are no other options at all for you. It’s just not possible for you to do anything else at all. It’s not possible to do anything online. All you can do is operate face to face. Then you might want to be thinking about hibernating your business.
And what I mean by that is, if you have no revenue coming in at all what you need to do is shrink your costs as low as they can be so that you are able to sustain this next time period with any reserves that you might have, or any grants that you may be able to obtain. So that involves being really, really clear on your business expenses, what is absolutely needed whilst your business is unable to trade. Once your business is unable to operate, what can you cut down and cut back on. Now here will be some stuff you’ll need to legally still have in place, insurance for example, you might still need to have in place. You will also still need to keep up with laws, compliance. Things like your tax returns will still need to be filed. There are still laws around that. Those things have as yet not been waived. So there are still laws and regulations that you might need to comply with.
You might have a professional body requirement to keep insurance in place, for example. So there are still going to be laws and rules that you have to comply with. So bear that in mind. But what else can you shrink down, downgrade, put on pause so that your businesses burn rate of cash during this time is as low as it can be? Now it’s unlikely you’ll be able to cancel everything and stop everything, because you will have some things like I said, that you legally have to have in place. And therefore it’s unlikely you’ll be able to cancel everything. You may still have to have some things.
I also want you to keep in mind during this time that you’re probably still going to want to communicate with your customers and your previous clients. You’re not going to want to cut off all communication completely if you want to have a business that you can wake up in a few months time. So things like a CRM, you might be looking at going, “Well what use is that? I’m not selling anything.” But actually you do still want to communicate with people. You don’t want to cut off your email list altogether, for example, from your communication. So that’s worth bearing in mind too. But as I say, this was one option is to hibernate the business pull down the costs as much as you possibly can. Get really clear on exactly what costs you need to incur during this time period, for however long it may last. And then you will have a business to be able to resurrect in the future.
The other option is to think outside the box a little bit on what you can deliver to clients remotely. Can you offer anything digitally that perhaps have never even occurred to you that you might be able to do before? I know gym owners that are doing online classes, I know dancing teachers that are doing online classes. I know people that host princess parties doing online princess parties. So there are lots of things that are happening that traditionally you would never ever have thought of as being able to do online, or giving people an option to do online. But it might be time to be thinking about that because people are self isolating, people are social distancing. And we have legislation being passed, which has certain industries that have to close their doors, all those kinds of things. So is there anything at all that you can do that moves stuff online?
I even have heard of a gym renting out dumbbells, renting out equipment to their members so that their members can work out from home. So what can you do to think strategically around what you might be able to offer digitally now at the moment? And maybe even it’s another revenue source for you in the future when things get back to normal, but what can you think about that you are able to deliver just now to people, that you can charge for, that you can deliver online? And that is another way to keep your business going during this time period. Thinking slightly more outside the box than you might normally, thinking strategically about what would fit for you to offer now so that again, you can see through this time and you can have a business in the future.
Now, even if you are looking at this digital route, I still want you to be really clear on what expenses you need and what that looks like. I have a video called The Money Leaks, so it’s worth checking that out to look at the process of how you assess what you need in your business and what you don’t need in your business when it comes to expenditure. But, what can you do just now to generate revenue and to keep the business going?
So those are your two options. It is hibernate if you really have absolutely zero chance of any revenue coming in over this time period, it’s just not going to happen for you, it’s just not possible. Then you’re going to want to hibernate the business. Or two, what can you deliver digitally? What options are available to you that you might just be able to pivot your offering, think a little bit differently about your business so that you can have revenue over this time period when people are starting to look for things to do, things to purchase, all that kind of thing.
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