These sure are unprecedented times. As business owners and non-profit managers we are in tough times. You may be feeling overwhelmed, anxious and downright terrified about what is going to happen.
Taking action is empowering. By focusing on the actions you can take this will help build resilience for you and your business. A resilient mindset will be so important to all of us over the next few days and months. So take a deep breath and think what positive steps you can do for your organisation.
Here are our five tips for businesses to survive Covid-19:
1. Focus on the next 7-30 days.
While we usually encourage 1-3 year planning, in the current situation, focus on your immediate needs.
2. Do you know what your outgoings are?
What is your break-even point? So many businesses/non-profits don’t know this and are surprised by the figure when they work it out. So do it now! See what is the minimum amount that needs to come in the door to make sure you can pay yourself, staff and suppliers. How will this change if your revenue was to drop 25-50% Also do this for yourself personally.
3. Cut out all unnecessary costs.
Go through your expenses line by line and see what you can put on hold or cancel. An easy one is look at all those online business subscriptions you have. What’s absolutely needed and what’s not. Contact the providers and you might be surprised that they will waive the subscription fees for you for a few months. Rank your costs by priority – low, medium and high. Low priority get rid of now. Draw a line in the sand when you are going to need to cancel medium priority expenses.
4. Ask for discounted rates from key suppliers
Everyone is doing it tough. We all need to work together so we all come through. Talk to your key suppliers, your landlord etc and see whether you can get reduced rent, special discounts, longer payment terms. Focus on reducing the bigger expenses in your organisation.
5. Talk to your bank
If you have an overdraft, business loans or even a personal mortgage talk to your bank. You may be able to go interest only, have a mortgage holiday, reduce your repayments. There are lots of options.
6. Can you change what you do to diversify income streams? Can you pivot your business in a totally new direction? What new products or services can you bring forward to launch?
(yes I said 5 but here is an extra one 😀)
Some businesses have been hit hard straight away such as event, tourism, hospitality and forestry businesses. Others might not see an impact for a month or two. Think about what you can do differently. Some examples we have read about include:
- Taupo motel offering their staff as cleaners to the wider community for one-off cleans. They have no guests so trying to find ways to keep staff employed
- Good George Brewing changing part of their distillery to start making hand sanitiser
- Restaurants gearing up to focus on takeaway or delivery meals rather than in-house dining.
Or can you just do more business online?
While we can’t predict the future and we don’t know how long it will take to get out the other side from Covid-19 and the economic implications, WE WILL GET THROUGH. Business will come right again, it will just take time.
So focus on action. Try and stay positive. Look after yourself, physically and emotionally. Lets all be kind and supportive of each other to get through.
On a personal level, we know what you are all going through and experiencing this too.