Things You Can Do (Immediately) to Maximize Your Chance of Surviving this Crisis - STOP THE BLEEDING

As small businesses and non-profit organizations, you are likely in midst of figuring out how to deal with the COVID-19 crisis. The implications of the crisis can mean loss of sales, staff, and potentially business closure. If you are one of the lucky ones that are still in operation, here are some tips that can help you:

Stop the Bleeding (1 of 3)
Operate with Uncertainties (2 of 3)
Prepare for a Restart (3 of 3)

STOP the BLEEDING EXTEND YOUR WORKING CAPITAL:

Extend your line of credit immediately (even if you do not need it now). If you have a healthy balance sheet, you have access to cheap working capital right now. Take advantage of this even if you don’t think you need it at the moment. Many local bankshave extended relief efforts to their clients that includes deferring loan payments, waving fees, to extending additional credits. Contact your bank to extend your line of credit to help weather yet what’s to come.
Apply for SBA Disaster Relief Fund– if your business has been impacted, you have an opportunity to access up to $2MM SBA loan at very low interest rate. Apply immediately. (Note that the website may be experiencing significant amount of traffic now so be patient. Access the website at non-business hours might help.)
(updated 3/27 12pm) Prosper Portland and City of Portland has just announced $2 million dollars of small business relieve fund for the Portland business community in forms of grants (for businesses < 50 people) or zero interest loans for other businesses.

STRIP DOWN to MINIMUM VIABLE:

If the demand for your products/services is impacted negatively, evaluate the cost of operations and make decisions on what are essentialand what can be deprioritized. Know your cash burn rate and what’s contributing to it. Evaluate the model of which you are delivering your products and services and reduce/re-design it so that it can sustain drops in demand.
If should you need to reduce your staff, do so with honesty and openness. This will build trust and improve the likelihood of bringing them back when situation changes for the better.

INCENTIVIZE CRITICAL PEOPLE:

It is a difficult time for a lot of people. Continue to pay your employees if you are able. If you are lucky enough to still be in operations (safely), reward those who are still with you along the ride. People want reassurance that their safety is held as priority and that you value their contribution in this critical time. Make this an opt-in incentive for those who decide on staying.

ACCESSIBILITY:

If your business is brick and mortar, rethink how to provide your service/products other ways. Are there other alternative channels that you can tap into? Online stores/shops? Expedited pick-ups? Opt-in shipping?

TAILOR WHAT YOU PROVIDE IN A WAY THAT CONNECTS TO WHAT PEOPLE NEED RIGHT NOW:

In this crisis, people want CONNECTIONS, GOOD NEWS, ABILITY TO HELP OTHERS, and ALLEVIATION FROM BORED! Can you reinvent, repackage, or position your offering that can help satisfy these needs? What creative derivations or simple re-inventions can you bring to the table that will speak directly to your potential customers/clients’ implicit and explicit needs now?
People will continue to pay for experiences—can you bring meaningful experiences virtually to your customers? As an example, Cincinnati Zoo does a fantastic job streaming their zoo experiences (Home Safari) and tie that to a crowd-funding messages social media live events.
Offer gift ideas that can help people show their appreciation for each others. This might be offering your customers a no hassle gift basket that they can send to their friends and family, a recipe to host a successful virtual happy hour, a token of appreciation for teachers and neighbors, etc.

CROWD-FUND SUPPORT:

Share your story. Enable your fans/loyal customers/alumni of your program etc. to join the effort to support you.
If you are a local business and depend on your community for support, try to target the message to your community. Tap into your local FB groups, HOAs, Nextdoor, etc.

CASH NOW, DELIVER FORWARD:

Offer gift cards, deals, etc. that can help you bring in cash today to your business.
Ask for grace period from your landlords (it doesn’t hurt to ask – and many I know who have asked received positive news!)

Things are not business as usual, despite our best attempt to hold down to “normalcy.” Risk management can help us think through things and provide temporary sense of control. That said, our environment will continue to shift. Leaders need a combination of foresight and adaptability to navigate in this critical time. We need deep thinking around how to navigate this changing landscape. We equally need to stay open and listen to what is required of us. Only by shifting towards “what is possible” mindset, we can learn, grow and reinvent.

Hsiang-Yi Lin is the managing director of MKMB Consulting, a boutique management and strategy consultancy that helps organizations navigate uncertainties, build strategic capacity, and accelerate organizational transformations. She can be reached at hsiangyi@mkmbgroup.com.