4 REALITIES THE COVID-19 PANDEMIC HAS EXPOSED FOR YOUR SMALL BUSINESS
The COVID-19 crisis is shaking the world to its core. As we manage through it and anticipate a “new normal” we are forced to reexamine our businesses.
There are four realities the COVID-19 pandemic has exposed for small business:
#1: The true culture of your organization.
Nothing tests your culture more than a crisis. This is a great time to revisit your company values and assess if they are the right ones for your business. If your values aren’t right, fix them.
Then ask yourself if your employees are truly living them. Is there a better way you can articulate those values to your employees? If you have employees that don’t fit your values, now is the time to trim them. It doesn’t mean they aren’t good people and won’t thrive somewhere else. They just aren’t a fit for you. Don’t waste a good crisis with opportunity. There are plenty of governmental programs out there to help them.
#2: The alignment of your business and personal missions.
The happiest and most successful people I know have a personal mission that aligns with their business mission. Now is the perfect time to think about your personal goals and what you want out of life, and make sure that they align with your goals for your business. Be reflective about where you were, where you are and where you want to be. It’s hard to see the long term especially right now, but it is important to know where you want to go.
#3: The integrity of your business and personal balance sheets.
One of the outcomes we saw from the 2008 crisis was the notion that households and businesses started using less debt. Because of the speed of the COVID-19 crisis, households and businesses will have stronger balance sheets. The shutting down of businesses—specifically restaurants and bars—literally happened overnight. There are a lot of what-ifs in the next 30-90 days, but the government is coming to the rescue. Those individuals and businesses that have strong balance sheets will get through this better than those that don’t.
#4: Your relationship with your bank.
This is something we have always preached. It’s crucial to have a candid and honest relationship with your bank. The federal government is flooding the banking system with money to support the payroll protection program, disaster relief loans, and to make credit easier to obtain. It’s going to take some time for businesses to reopen, so you also want to have a good relationship with the suppliers in your ecosystem. We don’t know what the reopen will look like, but not everyone can open on the same day at the same rate.
Knowing where your business is with these four realities is so important. This is the time to sit down and really revisit what type of business you want to have going forward.