HOT TOPICS AND ANSWERS from the BURNING QUESTIONS in a time of necessary adaptation
As I write this, we are in the middle of the Covid-19 Pandamic Event. Below are several tips for approaching this experience in a strategic way. These tips are derived from the many conversations I've had within our small groups (Better Business Better Life program) as well as individual coaching sessions.
1.) Create a way in your accounting chart of accounts to track your Income Loss and Expenses related to the Covid-19 Pandemic.
The true loss is not just your revenue this year, but consider your lost revenue in relation to your growth rate for the past several years.
2.) Reach out to your tax advisors and your bank resources…
for assistance applying for a complying with the payroll loans and other grants that may be made available in your area to help keep staff employed.
3.) We are at quarter-end, and in Profit First terms that would normally mean taking your quarterly distribution.
However, right now we are advising our clients not to distribute money from their profit account.
4.) Conserving cash is the order of the day.
We do not know what to expect and so much of this current situation is well beyond our control. So, we are saving everything possible to last as long as possible before needing to rely on any credit sources.
5.) In general, in a time of declining revenue, it is not wise to take out loans.
This situation is a bit different in that the decline is not through the misdeeds of others, it is in response to a growing health crisis. We do not advocate taking out loans to continue living above your means, so not a good time to buy that boat you’ve been wanting. But, loan assistance is a great opportunity to pay down high-interest credit cards and save on interest rates. You are better off focusing on the tax advantages like considering paying off your employees' student loans tax-free up to $5250, or reducing your high-interest credit card bills. (E.g. sometimes you sign up for one of those loans from American Express where you get drafted daily or weekly. Work on whittling that down because those payments create an inordinate amount of stress.)
6.) Opportunities are all around!
If you are sleeping routinely (a minimum of 8 hours a night), getting enough water, and eating healthy, taking care of your body mind and spirit – you are better able to see the opportunities around you. And then you can focus on the following:
1st: Reduce expenses – personally and in your business that are not absolutely essential. This is temporary and as we rebound, you will be better able to rebound too.
2nd: Communicate with your staff, your clients and your vendors. They need to hear from you as a human and you need to hear from them. It means so much to reach and express genuine concern for the people who keep your business going in normal times. It will lift spirits, bring laughter, and in general make the world a little better and in a lasting way.
3rd: Turn to all those projects that you never seem to have enough time for in your business. Get Strategic. What is one thing you can do that will make everything else easier when you start back up? Where can you invest a little time and small resources now to have a big impact when you are ready to start back?
Get in front of this now. Assess your level of entrepreneurial burnout and the health of your business. It's time to get your life back!
Stacey Seguin, Strategist at Tap the Potential
As a life-long learner, I’ve had many careers, as a certified corporate paralegal, a help desk manager working with shrink wrap and proprietary software, training and supporting 24/7/365 in a WAN environment, and starting multiple businesses including a lifestyle brand for girls ages 10-13.
I’m a calculated risk-taker.
Profitability brings stability. As a business owner, it becomes a way of life to ride the roller coaster of cash flow management. After 15 years of bootstrapping a multi-million dollar nationwide service provider in the private investigative industry, I know first hand the common experience of skipped paychecks and fear over making the next payroll. I have done the money dance at the post office weekly hoping those promised checks were actually delivered today.
I thrive in an environment of possibility and optimism, and can weather the stress of the unknown, but why do that when there is a better way?
That is what I found as a certified Profit First Professional. A better way. Being a business owner impacts every aspect of your personal life and your success in business is directly tied to your success as a human being.
Working on number management is only a part of what makes a business successful. In 2016 I discovered that Donna Leyens of the Provendus Group had co-created the tools and resources based on the Pumpkin Plan principles with Mike Michalowicz for business owners to bring three essential elements together- 1) knowing who you are as a business leader, 2) who your top clients are and 3) very precisely what you do for them. I knew immediately I’d found my calling as a Provendus Strategist linking everything I know about what makes a business exponentially great.
Experience, insight, and problem solving are my starting point for navigating business challenges. I eat sleep and breathe business and crave conversations with business owners.
My purpose is to bring insight and wisdom to guide direction and decision making for other business leaders and get tremendous satisfaction when helping others advance their goals.