If you’re feeling like a rabbit caught in the headlights, you’re not alone. We’re on the phone every day with clients who are concerned about the future of their businesses.
But, there’s hope. Many successful companies were started during or just before a recession or depression, including FedEx, Disney, Pizza Hut, Google, and Facebook.
There’s no doubt that the world would look different after we come out of this crisis, but instead of focusing on the challenges, we should grab onto the new opportunities this would bring. And the first step is to make sure you don’t sabotage your business with decisions made out of a state of panic.
5 Mistakes to Avoid during a Crisis
Let’s look at the five biggest mistakes we see business owners are making right now.
#1: Thinking Its Business as Usual
Your current business model may not be relevant anymore. The way we work and how people shop may change, there may be broken links in your supply chain, and you may spend time and money on things that bring no value to your business. There has never been a better, and more urgent, time than now to rethink your business strategy.
#2: Burning Your Bridges
It’s easy to make rash decisions that would help you in the short-term, but destroy relationships that you’ve built up over the years. Not paying your landlord or suppliers, retrenching staff prematurely, or ignoring clients who need to get confirmation from you that you’ll still fulfil your obligations, even if it’s only after lockdown – these actions could break their trust in you.
#3: Fixating on Cutting Costs
If you cut too much, your business may no longer be able to function properly. If you retrench all your staff, who’s going to get the work done? If you cancel your lease, where will you service your clients? If you cancel marketing, how are new customers going to find you?
#4: Focusing on Problems, Not Opportunities
It’s easy, and understandable, to get stuck in survival mode in a time like this, but you need to start looking for the opportunities this crisis is creating. Maybe all you need to do is to make a few tweaks to your business model, or maybe you need to pivot completely. If you find it challenging to see the opportunities for your business, the next point is for you.
#5: Being the Lone Wolf
We’re in uncharted waters; the biggest mistake you can make right now is thinking that you can do it all yourself. Thinking that you can dig yourself out of a hole, make decisions you’re not skilled at making. There’s never been a more urgent time to (maybe virtually) surround yourself with people who have your back, advisors who can support you in areas that you don’t have the expertise in. And if you’re thinking that an advisor is too expensive right now, not getting help may be a lot more costly.
Navigate the Road Forward
We know that it’s not always easy to think out of the box when you’re in survival mode, which is why we want to help you to navigate the future of your business. Let’s help you to understand your current situation, evaluate your options going forward, and guide you through this crazy time.