Business During World War 3

No, it’s not a typo.

These are unprecedented times. The biggest catastrophe since WW 2, many say. So, I’m labeling this WW3. Covid-19 + Lockdown + Oil price slump + Stock Market Crash + GLOBAL = WW3.

How do we cope in such times? For most businesses (if you’re not in rubber gloves, pharma, medical supplies and the like) are suffering from demand-side collapse. I mean who’s thinking of a holiday, meeting at a café, buying a new car or furniture right now?

Added to this is the disruption in supply chains, such that even industries in the essential goods sector are impacted by raw material and component shortages.

All this plus the Movement Control Order (MCO or mini -lockdown), roiled stock markets, plummeting oil prices, and forex volatility. And it’s global. Yes, the unpleasant appearance of World War 3. Hopefully, mankind and every nation can unite to fight this battle.

So, how do we operate in this scenario?

1)     Adjust our Mindset. Stay positive amidst all the news flow.

2)     Stay calm. The mind locks down when we are overly emotional(fear, anxiety, anger, shock, grief, panic, etc) and paralyses us into inaction or stimulates impulsive decisions. 

3)     Pray or meditate. It helps you stay calm but also calls on the divine for spiritual assistance and support. (man is a spiritual being in a physical body, some say).

4)     Accept that it is no longer business as usual. And possibly for some time, this is not temporary for a couple of months.

5)     Approach business differently. When your physical operations are closed, how do you capitalize online? Not many businesses are online or mobile-friendly. But thank goodness for e-commerce! If you’re not online yet, how do we strategise and plan for implementation?

(Of course, this is not possible for personal services like barbers, manicurists or chiropractors for example. Unless you offer home-service.)

6)     Collaborate – now’s the time to seek win: win alliances. Call it Strategic Partnership or Host-Beneficiary relationships, you have to find strength in collaboration. Sometimes these are industry (yes, among competitors), sometimes among allied businesses supplying different products and services to the same market or customer groups.

7)     Remember the basics.

i)       Manage and protect your cash flow. Make sure you update your 13-week rolling cash flow forecast every week (daily if necessary).

ii)      Preserve your reserves as much as possible. Source funds Now. Convert some of your investments and assets into cash (yes, cash is very much king in WW3).

iii)    Generate revenue. Explore 5 & 6 above. Explore new markets. How can you Create new revenue streams? Do you have new products or services you can launch now? Can you help sell or market other people’s products and services through your channels and platforms for a commission or profit-share? What other New approaches?

iv)    Re-negotiate your loans and take full advantage of the current moratorium most banks are providing.

v)      Implement pay-cuts.  If necessary, down-size especially non-performers. For the sake of the majority, a few may have to go. (always a painful headache and heartache for entrepreneurs).

vi)    Get better at Marketing, including Digital Marketing. Learn, train the team. Use online courses.

vii)  Delay all Capex - unless you have no choice. eg committed pending orders to fulfill or you're able to generate immediate cash flow and income stream.

8)  Do scenario planning. What if things get even worse? By 10%, by20? What if we cannot get the supply of a critical component? What if our biggest customer collapses? What to do when things eventually recover (it always does)? And so on.

9) Self-care. All the foregoing is pointless if we lose our health. Our family and team depend on us functioning at our best. Eat for nutrition. Drink lots of water. Exercise. Stay positive. Stay calm. Bolster your immunity. Most of all - Get rested.

More to come and in more depth in future posts but in the meantime, All the best my friends.

Feel free to contact me for any clarification and would love to hear how you are dealing with this too.