CEO & Founder of The Roger Doumanian Corporation - The Business Structure Experts | Cultivating Businesses Built on Bedrock®
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The Covid-19 pandemic caught the entire world by surprise. Every person and organization, from schools, non-profits and churches to major corporations and small businesses, has been impacted by this global catastrophe.
However, despite the trials and challenges posed by the pandemic, there are certain lessons to be learned from a tragic event like this one, especially for business owners, small and large.
Here are the five business lessons I learned over the last several months as I, too, navigated safeguarding my businesses from the Covid-19 challenges.
Always expect the unexpected
A global pandemic of Biblical proportions? We’ve seen it in movies, read about it in books and learned about it in school — but did we believe it could really happen in this day and age? In a world so medically advanced? Most people did not.
Does this mean you have to live in a state of paranoia all the time? Absolutely not. You just need to know that disaster can strike at any time, and you need to have a plan. This mindset goes with the rest of the lessons that will shed light on what your plan as a business owner should look like.
Build a safety net
Many businesses have been hit hard financially by Covid-19. Fear of the pandemic has kept consumers at home and forced companies to send employees home for a prolonged period of time. Some businesses have had to close their doors due to public health regulations. Sadly, many of those will never reopen while others will struggle for a long time to get back on their feet. Why? Because most businesses don’t have a cash cushion and can’t sustain an extended economic downturn.
In my experience, it’s important to build a cash cushion for your business that is equal to 12 months of your monthly overhead. This is perhaps one of the most difficult things to do, so start small. Set a goal to reach 1 month’s worth of overhead first; next, work toward 3 months, then 6 months and finally, 12 months. Businesses with a large cash cushion during a global crisis will not only survive — they will thrive. As other companies struggle financially during times like this, those with a cash cushion will be able to continue their operations and increase their marketshare due to decreased competition.
Be mobile and agile
In the midst of a crisis, we need to think and act fast to stay ahead of the threats posed by the challenges we are facing. Every business needs to be dynamic and ready to restructure and re-deploy in a timely manner.
• Mobility is the ability to move freely and easily.
• Agility is the ability to move quickly.
Covid-19 forced many businesses to restructure their operations. Some people had to take their business home, some moved into their garage, while others had to stay put and get creative with the space they have while making quick adjustments for the safety of their employees and customers. Businesses that were both mobile and agile quickly adapted to the necessary, and in some cases, mandatory changes imposed as a result of the coronavirus. Businesses that were neither mobile nor agile had a very difficult time. Sadly, some didn’t survive the severity of the storm they faced.
When disaster strikes, those who are positioned to move freely, easily and quickly will be able to reinvent themselves and adjust to their new environment.
Duplicate your resources
A big part of being mobile and agile is access to what you need, when you need it, to run your operations with little to no disruption.
Duplicating your resources means you’re making them accessible from multiple locations. This process may include digitizing your files and getting them on the cloud, which is accessible from anywhere with internet access. It may also include having a backup copy of your hard files in a fireproof safe at home; having spare laptops for mobile operations from home or a temporary office; and stocking up on supplies at home to ensure that you have all you need to keep your business running. The key is to have access to all of the “essential” resources to operate on a limited basis and still keep your business running, even when you and your staff are at home.
Remain calm, focused and on task
When disaster strikes, people tend to panic and worry. Covid-19? No exception. Overcome by the overwhelming headlines and conflicting stories in the media, business owners, like everyone else, are finding themselves confused, lost and frustrated. The uncertainty presented by a pandemic of this scale causes panic and makes it extremely difficult for business owners to keep it together.
The worst thing a business owner can do during a global crisis is to lose focus. Whatever you do, don’t get stuck watching news all day or getting emotional about everything that everyone has to say about this pandemic. Instead, do your homework, draw your own conclusions based on your research and stay focused and on task.
The Covid-19 pandemic has taught me these five priceless business lessons that I will value forever. If I was to summarize these lessons into one sentence, it would be: In a time of crisis, those who have planned and prepared will persevere and those who have not will disappear!
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