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:
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.