What Now?

You are facing a downturn in the economy and business. What do you need to be doing right now?

Do you keep people or let them go?

What about your vendors and suppliers?

And what about your customers?

Consider the airline oxygen mask concept. Put your mask on first so you can ensure you’ll be able to help someone else get theirs on. You know this drill.

Your highest priority as a business owner is to protect the life and health of the company. Do everything you ethically can to keep the company alive. It’s like the federal government whose number one priority is to defend the country. It doesn’t matter how the economy and other parts of society are doing. If a foreign adversary attacks us and the government isn’t ready to defend us, then we all lose! Defend your company first!

Not your salary. Not your assets. And, unfortunately, not your employees.

Once you’re committed to this first priority, the decisions on everything else become clear. Notice I didn’t say easier. It’s clear what you must do to keep the company alive. Also be clear on the benefits of this commitment to all concerned once the crisis has passed:

  • Employees have an opportunity to find another job or to file for unemployment.
  • Vendors have someone they can collaborate with and possibly provide some temporary relief to in hopes of saving a valued and long-term customer.
  • Your best customers will be much more understanding than you think and quite possibly be willing to help.

Once the downturn is over and the company has survived, you can:

  • Hire back the people you laid off or new people.
  • Perhaps earn a favored customer status with your vendors.
  • Have customers who have a new respect for you and the company.

The real secret sauce here is to communicate with each of these groups. Go beyond just communicating. You must implement what we call the Three C’s:

  • Communicate
  • Collaborate
  • Cooperate

These are part  of our Core Values here at New Paradigm Advisors. If you apply these three C’s to the situation, we can assure you that your stress level will go down. It won’t go away.  However, it will go down. Apply the three C’s with your people, your customers, your advisors, and your vendors. You will be shocked, yet pleased,  with the results.

Call or email us and let us know your experience. Let’s learn together.

Staying Focused in Turbulent Times

I woke up this morning thinking of what I can do to deal with the current market and societal changes that are seriously impacting my business. Since I’m an early morning person (meaning I am most creative and engaged in the morning), I am flooded with “great” ideas. Some of these I’ve thought of before and some are brand new. And, for sure, they are all great ideas! So many to choose from – and all of them are distractions from what should be my main focus: to stay faithful to my main business plan.

This is a case of: “For every mile of road, there’s two miles of ditch.”

There are so many times and reasons when we as business leaders get distracted with great new ideas. But we have to be careful that those new ideas don’t pull us into the ditch. Someone once likened this to a NASCAR race. This idea of staying focused on our main thing. In a NASCAR race the cars are racing around the track at speeds exceeding 200 mph. This requires the drivers to stay super focused on the track and the cars around them. If they ever so briefly glance away toward the wall, that nano second of distraction at 200 mph can drive them right into the wall.

For almost 3 years now, we’ve been racing around the track of this economy at over 200 mph. Now we have this yellow maybe even red flag waving at us called the Coronavirus. It seems that we’re going from 200mph down to almost zero. But are we really? Is this the time to take our eyes off the track ahead and start worrying about the wall? No! As tempting as it is, we can’t stop to worry about where the wall is, or where the other cars are around us. We can’t take the luxury of this worry. To survive and position ourselves to thrive in this and the next phase, we must stay in the race and run it with renewed focus. How do we do it? Here’s some ideas. These are designed to get our eyes back on the track and driving our own race car. Nothing new or super creative here. Just good old fashioned staying focused on The Main Thing:

  • Assemble your key leadership for a focused analysis of what is happening in your market:
    • What are your customers and vendors experiencing?
    • How can you and your team proactively impact them?
    • What are you currently reacting to that you can shift to a more proactive approach?
    • Review how you service your customers in this new situation: what can you do to help them?
  • Seek counsel from your key corporate advisors:
    • CPA
    • Banker
    • Insurance agent
    • Financial advisor
    • Attorney
    • Corporate consultant.
  • If you are project based, meet with each of your clients and explore with them everything about the project with a fresh eye.
    • What, if anything, needs to change?
    • What do you anticipate are going to be the challenges to complete?
  • If you are product based, meet with your vendors and explore with them what they see as impacting the supply chain. From those discussions:
    • What do you need to meet over with your primary customers?
  • In all cases, meet with your employees and let them know what the plan is! Their loyalty and commitment to you–and you to them– during this time is supremely important and critical.  Keep them informed.

This is just a start. I’m sure you are already thinking along these lines and maybe beyond. My challenge to you remains: don’t get so creative that you lose your focus on the track ahead. Now is not the time to get distracted with a shiny thing.

Stay focused! You can do this!