5 Things That Keep My Clients Afloat During COVID-19

You’ve heard this phrase ad nauseum = “These are extraordinary times that were not truly on anyone’s radar at the beginning of 2020.”

Analysts and economists all predicted reasonably moderate advances for the economy and most businesses that I work with planned for a year of good growth and more investment into their companies – including a healthy hiring wave. When SARS-CoV-2 turned everything upside down, it became very clear, very quickly, that the red-alert had to be sounded and the hatches battened.

While the COVID-19 pandemic certainly threw a new wrinkle at all of us, there is history to draw lessons from. In other words, this has happened before, albeit, in a different form. Having been through several economic downturns, personally, and having to deal with them professionally, including Black Monday 1987, the dot-com failures in 1999-2000, the hospitality industry’s collapse in 2001-2002 after the 9/11 tragedy, and most recently the 2007-2008 financial collapse, I was able to draw on those experiences and how the organizations I was associated with handled them and survived.

My clients came to me with so many difficult questions. Will I need a workforce reduction? Will I need to close the doors indefinitely, or perhaps permanently? When will business flow return to some semblance of normalcy and cash start to flow again? Am I an ‘essential business’ – if not, am I in trouble? Tough questions. In each case, we met and created a plan that was appropriate for each business, weighing all the options, consequences and unknowns. These plans are all living projects, with adjustments and revisions being the rule rather than the exception.

However, today, I remain a partner in my clients’ survival and durability during COVID-19. Irrespective of their industry, product or service, these five elements have been key in enduring a true business crisis.

1. Cash is King

Conserving cash was and is the very first priority on the list of every business I work with. Postpone and delay any capital purchases and non-critical disbursements. Delay salary merit increases and possibly change your payroll processing intervals to bi-weekly or monthly, if appropriate. Contact your personal banking representative to discuss financing options, including EIDL and PPP funds that you may be qualified to receive. My clients would all say that I (normally) do not encourage them to get mired in the weeds, however, that has changed. To that end, tightly control all expenditures and have a clear understanding of your cash situation on a weekly, if not daily, basis.

2. Contact Your Customers

Reach out to every key customer and, if you haven’t already, establish a regular communication platform with them to understand their situation and how it will affect you. It’s entirely possible that they may need more of your product or service during these times, as is the case with one of my clients. Pursue AR collections- with empathy - but continue to pursue your cash persistently.

3. Contact Your Suppliers

Contact your supplier representatives and let them know that, due to the evolving economic landscape, you are forced to prioritize and delay AP disbursements wherever possible. Again, do so with empathy, but continue to review this each week. Maintain regular communication with your account representatives so that they gain a comfort level with you and your ability to keep them whole, while protecting your own enterprise.

4. Talk with Your Staff

Set up a regular interval of communication and stick to the schedule, even if there is nothing new to report. People assimilate and process information very differently during periods of stress, so keep communications concise and direct.

Expect employees to be more attentive, but also potentially more critical and emotional. They may have exaggerated responses, or only hear part of a message, which can stoke negative emotions and anxiety. Therefore, internal communications must be prepared to constantly listen for employee feedback and respond quickly when questions arise. We are social animals, programmed for frequent, face-to-face interaction.

If all or part of your staff is working remotely, perhaps you can create a ‘virtual watercooler’ — an environment that encourages social connection through chat, community, and virtual event applications. In companies that hold regular “all-hands” meetings, move these online and use video conferencing platforms to keep them as personal as possible.

Use these occasions to deliver inspiring messages rather than simple information that can be saved for other venues. Tell stories of employees who symbolize company values.

Recognize those who are playing a role in their communities, and of course, empathize with those who have experienced illness or loss in their families.

5. Be a Strong Leader

The actions you take now will be remembered for years after this crisis is over — especially how you treat your employees, customers, and suppliers. If your company needs to downsize or make cuts, openly discuss what actions you are taking and, if salary cuts are inevitable, be the first. What you do now will be defining and part of your legacy, so work twice as hard. These things also send a message to your team, customers and suppliers that your business will still be standing strong after COVID-19.

"Everyone needs a coach" - Bill Gates

~Michael

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