How entrepreneurs can navigate the COVID-19 economic downturn?

Happy New Year! With the calendar rolling over to 2021, we have the chance for a fresh start – new goals, new opportunities – even if in a different form than years past.

There’s no sugar-coating it – the past several months during the Covid-19 pandemic have been challenging for all of us, especially when it comes to the economy. The increase in unemployment rates, less non-essential consumer spending and erratic interest rates paint a less than rosy financial picture.

The good news is that with the ongoing distribution of vaccines and development of economic recovery plans, things look to improve in the next few months.

If you’re an entrepreneur, you might be wondering how to navigate through this economic downturn and position your business for success as the economy continues to open up.

Well, here are three of the most important things you should do to protect your business:

Manage your cash flow

While sound advice even in the best of times, make sure you continue to control expenses and cash flow. Even though you’re feeling optimistic that we are finally, truly rounding that corner toward a better economy, if there’s currently more money going out the door than coming in, you risk not making it across the finish line. We can’t predict just how long the full recovery will really take. As an entrepreneur, being optimistic is in your blood. But too much optimism at this critical time could sink you.

Continue to be laser focused on getting your money from clients and making sure that payables are sorted, so that you can emerge from this crisis stronger and in line for success. Until we get a clearer picture of how circumstances will unfold this year, I would also hold off planning any big events. For now, keep your event planning to virtual events.

Look after yourself

Winter is in full swing and gyms are closed in many regions, but you must prioritize looking after your health. Without you, there is no business. Take an introspective look at your personal life. As an entrepreneur, it can be pretty lonely carrying the weight of a business on your shoulders – it exacts a toll on you physically and emotionally. Most entrepreneurs have 10 to 12-hour days and are constantly dealing with the anxiety of paying bills and waiting on cheques. Get regular exercise, don’t skimp out on sleep and consider taking up yoga or meditation to help you filter out the stress. It’s also a good idea to limit your caffeine intake!

Put your business into perspective

Once you’ve sorted yourself out, you’ll need to put the health of your business into perspective. Analyze the year that just passed and review any aspirational budgets – that lofty number you wanted to achieve. Adjust it as needed for 2021 and start building or restructuring your team to achieve these goals in anticipation of emerging from this economic downturn. Continue to focus on key client relationships and add value wherever you can, so they continue to appreciate what you bring.

Also, look for innovative ways to keep your business in the public conversation. Your clients and prospects are online every day. Post regularly to social channels and create blogs and videos to position yourself as a thought leader in your sector.

Still unsure? If you’re a current or aspiring entrepreneur with questions and concerns about the year ahead, I want to hear from you. Get in touch with me at [email protected].