Every industry, every business and every customer face an extreme challenge while the entire world and the global economy deals with this Covid-crisis.
The impact of the plummeting economy has put a strain on cash reserves, employment, manufacturing, imports and exports etc.
Often you as a business leader feel like you are carrying the entire “business-survival-worrying-weight” on your shoulders. So, keep the words of Winston Churchill in mind:
“Success is not final; failure is not fatal; it is the courage to continue that counts.”
Keep going! You as a business leader can increase the chances of the business’s survival with a few of The Mindspa Institute’s survival strategies.
#1 Strategy: Focus on your core
Focus on what you do best that brings in the most money. Relook your entire business strategy from your products, through to your staff and services. Focus on the core of your business. Now is not the time to experiment with new processes, services or products. It takes unnecessary time, effort and resources which you should use to focus on the main thing that is the most profitable to the business. Refocus on the problems within the core and fix what’s wrong.
#2 Strategy: Finances
Keep an extremely tight budget and stay on top of all expenses. Cut all unnecessary expenditures. Make sure you know exactly what goes on in the finances of the business in order to make well-informed decisions. Some of the financial decisions will be very hard to make but remember you want to secure the survival of the business. Although you might cut down now on, for example, office space or discontinue some products, it will get better again.
#3 Strategy: Taking Care of Your Employees
Remember that you are responsible for people exactly like you, who also have problems. They too have families and mouths to feed. If you are forced to consider layoffs, rather consider salary cuts of the higher paid executives in order to try and retain the people who can’t afford to lose their jobs. However, when there might be tough decisions you as the business leader are forced to make, do it with emotional intelligence. Use empathy and reassurance as a strategy and try assisting with solutions and alternative options.
#4 Strategy: Communication and Transparency
Realise that everyone needs a fighting chance to ensure their survival. Your entire workforce and customers rely on you to communicate properly and be transparent with them, even if it is hard. Effective communication plays a vital role in dealing with every single crisis. Have reassuring and honest conversations with customers, investors, employees and other stakeholders about the impact the crisis has on the business. Motivate why your business’s survival requires everyone to work together and unite. We are stronger when we work together.
#5 Strategy: Don’t cut your Training and Marketing Costs
This is the first mistake many business leaders make when they try to cut costs. In reality, the upskilling of your biggest asset which is your employees will secure your business survival. When you invest and train your employees, new ideas, a better moral and a more united motivated team will help fight the “war” with you, so to speak. And the marketing of your business will bring in more business and opportunities increasing your profitability.
“Any kind of crisis can be good. It wakes you up.”
Wise words of Ryan Reynolds, don’t you think? The reality is that in the crisis situations many business leaders either freak out or stick their heads in the sand. When you tackle the crisis decisively and make well-informed decisions, while communicating effectively and with empathy, your chances for business survival are dramatically increased.