At the start of our world changing, I did a Facebook Live training on navigating your business through uncertain times. I provided five strategies to help you navigate through uncertainty in your business. These strategies can be used now during a pandemic, but during normal times as well.
Maintain a Positive State of Mind. Keeping calm and not panicking during this time of uncertainty is going to be KEY. This is new for everybody and we will get through it. So start by taking a deep breath (go ahead, I’ll wait for you). Feel a little better now? Good!
When you come from a calm place, you can make better decisions. You can start creating a level-headed strategy. You can stop reacting to everything that’s going on in the world, your community, and in your business.
When you stay calm, you will begin to be grateful and thankful for where you are right now, what you have, and even where you are at the moment in your business. Being thankful for where you are and the lessons you’ve learned will help you shape and mold your business in this current economic situation.
But we need to look at the bigger picture. We may be in this situation for the long haul. And being mentally fatigued about things we cannot control isn’t doing you (or anyone else) any good.
Your routine has changed. Create a new routine that works for you, your family, and your business. Be consistent with it. Give yourself some space (physically & mentally) where both you and your family can work/study. Set a schedule and keep it. This will increase your productivity as well as enhance your children’s homeschooling experience.
Be a little gentle on yourself. If you are getting overwhelmed, put on some music and have a dance party in the living room. Go outside and play. Get some fresh air. All of these things will ensure your state of mind remains positive.
Connect with like minded business owners. If you’re a business owner and you have a community of business people you can connect with, do so! When we connect with people who have the same (or at least a similar) mindset, instead of feeling drained or negative, you will begin to feel supported, encouraged and lifted up. The best communities lift everyone up. For instance, you can join our Facebook Community here: The Empowered Lady Boss.
Now that we are in this isolation period, reaching out to those communities can be vital. Begin building relationships now and when this crisis subsides, you will have business relationships that you can lean on, grow with, and count on in the future.
Be aware of your personal financial budget. Create a plan by looking at your personal budget. What are your current needs? Being home, you might be cooking more, so your food budget may have increased. Review your expenses for the past two (2) months. Where did you spend your money and on what?
Then look at your debt. How much debt do you have? What are your monthly payments? What fixed costs do you have that must be met? I can’t stress this enough – You need to know that number. Next, look at any discretionary spending. Discretionary spending is non-essential expenses. Review subscriptions, membership fees, cell phone and internet plans, and other things that you may be able to reduce or even eliminate to free up funds for other expenses.
Be aware of your business financials. This pandemic has really highlighted the need for good up to date bookkeeping for your business. If you aren’t already tracking your business financials, now is a very good time to start learning how to. Right now you may not have as much client work as normal and may have the extra time.
You can get started with a simple spreadsheet. Begin tracking how much money is coming into your business, what your business expenses are, and what expenses are fixed or variable. If your business has employees, you need to determine if you will have enough money coming into your business to cover payroll. And don’t forget yourself.
Reduce accounts receivable days. Reducing the amount of accounts receivable days will help your business cash flow. When you invoice a client and the terms of the invoice are net 30 (giving them 30 days to pay) for services you’ve already provided, it hinders the cash flow into your business. The sooner you can receive cash into your business, the better. Waiting for a client to pay an invoice can make or break your cashflow. It can also cause you to accrue overdraft fees. Remember, you are in control of your business. You are in control of when you get paid. You are in control of your cash flow. Don’t know how — reach out and ask.
Review expenses. Just as you did for your personal budget, review your business expenses. Do you have subscriptions that you aren’t using or could reduce the plan? Are there expenses in your business that you can’t use during this social distancing time? Networking memberships for example. Combining reduced account receivable days with a reduction in expenses will increase your cash flow.
Create a Plan. This is not your 2020 plan. We could not have anticipated COVID-19 and the shutting down of the economy. This new plan is your business survival plan. As you become clear on the resources that are available to you, then create that plan. Have a detailed plan for your business. It is important to be agile with your plan. Even with the economic uncertainty we are currently facing, it’s important to have a plan for the future.
Start with looking ahead two (2) weeks. What projects do you have planned? What expenses do you anticipate? What aspects of your business do you need to nail down (financials, marketing, systems)? If you have proposals out there, and your potential new clients haven’t signed on yet, reach out. Start looking at what your revenue will be and what your expenses will be.
Plan for the next 30 days. Then for the next 60 days, and 90 days.
Need help with creating financial freedom with your business?
Here is how I can help. I have launched a new program Begin With Profit. This program will teach you how to structure your business finances to create profit with every engagement, even during COVID-19.
You will walk away knowing how to identify your most profitable service and package it so your potential clients say yes! You can also use the calculator that I developed to help you know how much your business needs to generate so that you can live the life you want. The investment in you and your business will pay for itself over and over again.
Bottom line: There are things that you can control even in uncertain times. Don’t be reactive; be proactive with a plan.
