For many Covid-19 has temporarily changed the way business is done and for others those changes will be permanent. This is both good and bad. The good is that for those that adapt, they will find news ways to do business. The bad is that for those who remain steadfast in their ways, they may not survive. This brings me to today’s topic, discounts.

Discounts are necessary

Before going any further, many of the enterprises deemed as essential along with those businesses that have only had to relocate their workers to their home, are most likely able to continue with business as usual and don’t need to offer any discounts. For the rest though, discounts may be necessary.

There’s lots of commentary on social media platforms about the merits of maintaining your pricing during these disruptive period. These statements are usually is prefaced by slogans such as “Get paid what your worth” or “Don’t discount your value” and so on. These are all great motherhood statements that have some value when things are normal. But these aren’t normal times.
Let’s be honest, even in the best of times, you only get to take that position when you’ve been in business long enough and have created a reputation as an organization that consistently deliver results and are deemed to be an expert in your field. So, regardless of what you think you’re worth. It only matters what your customers think you’re worth and chances are your customers are being enticed by intriguing value propositions by your competitors.

30-50% of SME’s will fail

Having been through more than one economic upheaval and survived to talk about it, I disagree with whole notion of not offering discounts. Based on estimates, approximately 30-50% of SME will not make it and as an owner you have but one goal for the next while-survival, period. Since the majority of your customers are probably suffering, they will be looking discounts on any spending they’re making and if you don’t, your competitor will.

Assuming 30% failure rate, the 1st 10% are already gone, with the 2nd 10% only weeks away. It’s the last 10% who you need to worry about, because they’ll be gunning for you by targeting your customers by offering discounts. Why? Because they’re desperate. This in turn will put huge competitive pressure on your business as you compete with lower priced competitors. For those that are financially secure or are unaffected by the impact of Covid-19, hallelujah! Otherwise, you need to make sure you keep cash coming in, because if you’re not selling anything, you risk falling into the 30%.

Protect your brand

The challenge in all of this is fighting our own pride and ego. They say that “pride goeth before the fall”. This translate into those that are too arrogant will fail. If there ever was a time to seriously consider offering temporary discounts, this is it. It’ll give you the ammunition to protect your brand and your company. Remember that breaking even is ok, because in times like these, profit can wait for better days.

Covid-19 Discounts

So, how do you go about offering discounts that don’t become permanent? One simple way is to turn what you’re doing upside down. Why not consider offering a temporary Covid-19 discounts on your product and services? You can communicate to your clients that in these difficult time you want to do your part and help other business owners.

How you do this is quite simple. On your quotes or invoices, you show what your regular fee or product costs as you would normally. Then on the next line you show “Less temporary Covid-19 discounts” and then deduct the amount of the discounts.

By itemizing the discounts as separate line items on the quote or invoice, you reinforce your goodwill gesture, even though it’s self preservation. By having it as a separate line item it reinforces that it’s a specific discount thereby inferring that this won’t be forever. Failing to list the discounts separately, effectively creates a new lower price. When things return to normal and you and your business is still standing when many aren’t, you can then begin to remove your discounts.

To quote Darwin “It’s not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change”

 

You may also enjoy Cash flow – The breath of life

Get More LIFE Out of Your Business

You shouldn’t be the hardest working person in your company.

Many small business owners find that even after the struggling start-up years, they’re working too many hours and still managing every aspect of their businesses.

Greg Weatherdon has been there, done that. As an entrepreneur, he learned not only how to get a business to the point of running smoothly, but also how to reduce the number of hours he worked, delegate more responsibility to his employees, and take longer vacations while his business chugged along like a well-oiled machine. And now he is providing the secret to success.

Do you suffer from any of the following?

1. Business ownership isn’t living up to the dream.
2. Endless workdays.
3. You can’t find good people.
4. Profits are less than expected.
5. You can never take a vacation.

You’re not alone. But there is a solution. As Greg demonstrates, with some time and effort, you really can Get More Life Out Of Your Business.

Covid-19 is creating utter chaos for many small business owners. Fear is taken hold of many owners as they wonder what’s next? No one knows when or if they’ll reopen. Most don’t want to admit out loud what they are secretly thinking-bankruptcy. It’s just too difficult to fathom.

Making any kind of decision while under duress is never a good idea. We’re just not thinking clearly. This is especially true when your dream or life long work is about to evaporate in front of your eyes.

Covid-19 has forced governments to mandate closure of all but essential services in many parts of the world. In turn this has created panic amongst many entrepreneurs and their reactions range from submission to lashing out at everyone. To be fair, this is a once in a lifetime scenario. Much like a 100 year storm, most individuals and businesses are not prepared, and the aftermath will be disastrous for many.

There is no cavalry coming.

Not to be the bearer of bad news, but there is no cavalry coming, sorry. Governments can only do so much, and many small businesses will not qualify for the many programs that are being unveiled.

Many individuals think that the banks should automatically suspend all payments, but that’s not going to happen. However, if you’re business was solid before Covid-19, you can probably get some short term concessions. If your business was struggling beforehand, then don’t hold out hope.

Many landlords are small business owners themselves. They, like you, can’t afford to offer much leniency. They too have mortgages and bills to pay. Unlike residential mortgages commercial mortgages don’t usually have deferral options, so their payments must be made.

Hope for the best, but expect the worst

So, what’s an entrepreneur to do? To state the obvious, batten down the hatches. But instead of just fretting away, it’s time to get proactive and lay out a plan. Actually, it’s time to lay out two plans. The first plan is based on your business starting up in 4-8 weeks and the other is the worst case scenario plan, business shutdown. Regardless of which way it goes, working on your plans will be a distraction from all the noise and give you something to do.

Plan #1 – 4-8 weeks

Assuming you’ll be able to restart, you’ll need to put a game plan in place, so here’s a primer on the things you’ll need to think about.

• Call your landlord- If you haven’t already, it’s time to make that call and ask how you can work together. They may or may not be willing or able to offer any concessions. But you do need to know, don’t assume, ask the question.

• Business most likely won’t return to the pre-crisis level, so how do you plan on managing it? How much staff do you need, short and long term? You need to let your employees know your thoughts.

• How are you going to get your customers back? My suggestion is to call them and let them know you’re planning to restart as soon as you’re able. An alternative is to email them. But it’s far less personal.

• Depending on your business, do you have to do a thorough sanitizing?

• Do you have product that expires? What’s your plan on disposing of it?

• Do you have receivables? How do you plan on collecting these? Are you prepared to offer the same concessions you’re looking for from your suppliers?

• Call your suppliers. Has your status changed with them? If you had credit with them, is it still available? This is important to know. If you no longer have credit available, how do you plan on getting your supplies?

• Make a regular habit of checking your on your place of business. Some leases and insurance policies have clauses stating that you must check the premises regularly.

Plan #2 – Business shutdown

This is not fun, but you need to be prepared if this becomes the inevitable. Planning a measured shutdown is far better than doing nothing and just letting things happen. As soul destroying that this can be, there’s an old adage that says, “if you find yourself in a hole, quit digging!” If shutting the business down is your only option, it’s best to initiate it sooner rather than later, to stop the financial bleeding. Now is the time to get your head around this potential outcome, so that you are in control. The following steps should get you started in the event a windup is necessary

• Contact your lawyer and discuss the situation. Find out what needs to be done to close a business and the cost to do so. Get their input and direction on how to handle your suppliers, including your landlord.

• Contact your accountant and ask them what your liability is regarding taxes owed and their role in a business wind up.

• Make a list of all your payables. This list includes absolutely everything. This way you’ll know how much you owe.

• Make a list of any receivables you have and your plan to collect on these. The more you collect, the less you’ll end up owing.

• List all your inventory and contact your suppliers to see if you can return any unused product. Otherwise develop a plan to liquidate.

• List all your business assets i.e. equipment. These can be sold. Just remember that their value will be significantly less than you paid or what you think they’re worth, as many other businesses will be liquidating at the same time.

• Contact any other creditors to determine what you owe them. Some will be willing to negotiate a lesser amount or some form of payment plan.

• Make sure you complete all the necessary paperwork for laying off your staff, if you haven’t done so yet.

Regardless of your experience or years in business, no one could have foreseen what has gripped the world economies as a result of Covid-19. Most recessions and depression come upon gradually over time and gives people the time to adjust their course in order to weather the storm, but not this time. It was immediate and without warning.

What you do next matters. How you do it also matters. So, by putting your plans in place now, you’ll be prepared, in control and be able to live to fight another day.

.

Get More LIFE Out of Your Business

You shouldn’t be the hardest working person in your company.

Many small business owners find that even after the struggling start-up years, they’re working too many hours and still managing every aspect of their businesses.

Greg Weatherdon has been there, done that. As an entrepreneur, he learned not only how to get a business to the point of running smoothly, but also how to reduce the number of hours he worked, delegate more responsibility to his employees, and take longer vacations while his business chugged along like a well-oiled machine. And now he is providing the secret to success.

Do you suffer from any of the following?

1. Business ownership isn’t living up to the dream.
2. Endless workdays.
3. You can’t find good people.
4. Profits are less than expected.
5. You can never take a vacation.

You’re not alone. But there is a solution. As Greg demonstrates, with some time and effort, you really can Get More Life Out Of Your Business.

We all know how much work it takes to survive, let alone thrive as an entrepreneur. We have all put in the long hours and have faced disappointments along with the successes that come with the territory. Some days, you’re just freaking awesome. On others, not so much. It just feels like you’re taking one step forward and two steps back. Such is the life we have chosen!

You work your butt off to get the business, but somewhere along the line you or your staff drops the ball and turn in a less than stellar performance. This typically results in a call from an unhappy client that until you picked up the phone, you were totally oblivious to any problem, and now you start to scramble. Not only do you scramble for the right words to appease the client, but you scramble for suitable solution that will hopefully make things right. Sometimes it’s a simple fix, but more often than not, it usually costs you a chunk of your day and worse, a chunk of your profits.

Crisis Moment

If we’re to be honest, this has happened to everyone on occasion, but what really concerns me, is when this happens with such frequency it’s just accepted as another day paradise. Unfortunately, I see a lot of businesses that seem to operate in this constant crisis mode. If it wasn’t for the abilities of these owners to placate the customers, they would have ceased to exist long ago. But seriously, what a waste of energy, talent and resources.

If we could just step back for a moment and look how much effort goes into “making things right” with the customer, it really is a shame. What if all that energy could be focused on moving the company to the next level or to deal with higher value initiatives, instead of wasting it on fire fighting activities that should have never occurred?

How do you want it done?

The thing is, it takes just as much energy to have a great company as it does to have a mediocre one. The big difference is in order to create a great company, you need to take the initiative and be proactive by doing the following:

● You need to set the priorities.
● You need to train your people.
● You need to create the systems.
● You need to set the minimum acceptable performance thresholds.

If you noticed, the operative word being “you”! You have to roll up your sleeves and you have to figure out what you want and how you want it done.

In some ways, constantly operating in crisis mode is easier, you just let it happen and then react to it when it comes up. That way you can spend the rest of your time, if there is any, blissfully ignorant of all the problems. But this is a highly stressful way to run a business and your life and to be honest, it gets really tiresome after a while.

The right moment will never come

Alternatively, if you want a calmer work environment, then you’ll need to take a proactive approach. The problem is, it’s all about you. It all rests on your shoulders to start the transition. The challenge of course, if you’re already living in small business hell, is you’ll need to dig even deeper to find some time and the energy to start making the changes. Let me caution you, that if you think you need to wait for just the right moment start to making changes, you’re only fooling yourself, because that moment will never come.

So, in order to break this logjam of when to start, my best advice, is to start right where you are. Stop what you’re doing, take a deep breath and ask yourself these 5 questions:

● What is the current crisis you’re dealing with?
● What went wrong?
● Is this a recurring issue?
● What could I have done to prevent this?
● What can I do to prevent this from happening again?

When you ask these questions, make sure you do a 360 degree look at the situation. It’s really easy to lay the blame in the wrong area, because chances are it’s a combination of missteps. Throwing your hands up and saying you shouldn’t have to worry about this stuff is what got you here in the first place and is not going to fix anything. You do have to worry about this stuff.

It’s a teaching moment

Once you’ve identified the root cause of the problem, lay out a plan to ensure it doesn’t happen again and make sure everyone involved, knows.
You need to understand that people want to learn and to be better. It’s your job to teach them, because that’s what leaders do, to show them a better way. So, this is not a time for screaming and yelling, it’s a teaching moment.

Hoping and praying that things will get better all on their own, is a fallacy. When you started your company you had a vision. Unfortunately, somewhere along way it has gone sideways and now you find yourself wondering what you’ve got yourself into and you’re probably tired of it.

Letting people know what you expect done, how you expect it done and when you expect it done, will go a long way to transition your business from average to great.

Copyright © Greg Weatherdon 2019

Sign up above to receive email notification of the latest update to this blog.

Get More LIFE Out of Your Business

You shouldn’t be the hardest working person in your company.

Many small business owners find that even after the struggling start-up years, they’re working too many hours and still managing every aspect of their businesses.

Greg Weatherdon has been there, done that. As an entrepreneur, he learned not only how to get a business to the point of running smoothly, but also how to reduce the number of hours he worked, delegate more responsibility to his employees, and take longer vacations while his business chugged along like a well-oiled machine. And now he is providing the secret to success.

Do you suffer from any of the following?

1. Business ownership isn’t living up to the dream.
2. Endless workdays.
3. You can’t find good people.
4. Profits are less than expected.
5. You can never take a vacation.

You’re not alone. But there is a solution. As Greg demonstrates, with some time and effort, you really can Get More Life Out Of Your Business.

Read Time: 3:58 minutes

I often get approached by entrepreneurs who are facing significant challenges in their businesses. By significant I mean – They’ve dug themselves into a hole so deep that they’re going to go out of business if something doesn’t change! So, my first piece of advice courtesy of Will Rogers , the American humourist is, “When you find yourself in a hole, quit digging!

As far back as I can remember, I’ve always been the person called upon to help fix a situation. For the less urgent ones, I’m more of a troubleshooter, as I usually had some time to assess the problem or problems and then sketch out a game plan.

On the other hand, when I’m approached by an owner with an urgent challenge, I usually take on the role of a firefighter. This is because the situation is critical and there is no time for naval gazing and strategizing. It’s a time for action. It’s more akin to a scorched earth approach, whereby nothing is sacred.

Got the t-shirt

It has been my experience, that in these situations to do anything less is not an option and speed is of the essence. These situations are usually long in the making but typically ignored until they become a full blown crisis. To an outside observer, you would wonder how it could have gotten so bad? But until you are in the thick of it, you’ll never really understand how these things happen. Been there, done that and I’ve got the t-shirt!

Of course, we’ve all read those inspirational books or articles that tell you to stick to it and persevere no matter how hard it is. Or, that suffering is the price you pay to be an entrepreneur. So, I want to tell you that there’s a limit to how much misery, you must put up with.

Unfortunately, when many of us are faced with business destroying crises, we tend to develop a bit of tunnel vision that limits our ability to see all the options available. Couple that with our desire to succeed, plus a little pride and ego, we don’t even consider any of the negative options that can effectively gut your company and your dream.

Strangely enough, when talking with these clients many already know what they “should” do. They just can’t bring themselves to do it, preferring to carry on hoping and praying that the situation will improve. Regrettably, it rarely does.

5 Survival Tips

If survival is your goal, then you must make the hard calls. The first of which is to reduce all your expenses, regardless of how uncomfortable you are. We’re talking survival here. The following list can get you thinking of some of the drastic measures you must take:

1. Move your business. Relocate to your residence or some other free or less expensive space.

2. Cut staff. Payroll is usually the largest expense a company has. Not a fun exercise but a necessary one.

3. Cut all non-core expenses. I mean everything. Nothing is sacred. Cell phone, copiers, coffee service, cleaning services. No more client lunches. Absolutely everything gets scrutinized.

4. Dump unprofitable clients. If you don’t know who they are, figure it out immediately. Deal only with those clients that are profitable now and pay promptly.

5. Streamline your product or service offerings to those items that are profitable. With reduced staffing, you probably won’t be able to support more than a couple of core services. So, do the stuff that makes you money.

Yes, I can state categorically, this is an painful and humbling process. But if you think the business and your sanity is worth saving then you have absolutely no choice. Once completed though, it’ll feel like a huge weight has been lifted off your shoulders.

Quit Digging

Many who have gone through this and survived have felt rejuvenated. It’s like they’re in start-up mode all over again and what they discover is that this is their happy place.

So, if you ever find yourself in a hole, quit digging!

You may also enjoy The Fear Of Decisions

Copyright © Greg Weatherdon 

Sign up above to receive email notification of the latest update to this blog.

Get More LIFE Out of Your Business

You shouldn’t be the hardest working person in your company.

Many small business owners find that even after the struggling start-up years, they’re working too many hours and still managing every aspect of their businesses.

Greg Weatherdon has been there, done that. As an entrepreneur, he learned not only how to get a business to the point of running smoothly, but also how to reduce the number of hours he worked, delegate more responsibility to his employees, and take longer vacations while his business chugged along like a well-oiled machine. And now he is providing the secret to success.

Do you suffer from any of the following?

1. Business ownership isn’t living up to the dream.
2. Endless workdays.
3. You can’t find good people.
4. Profits are less than expected.
5. You can never take a vacation.

You’re not alone. But there is a solution. As Greg demonstrates, with some time and effort, you really can Get More Life Out Of Your Business.

What if, you could start your business all over again? What would you do differently? What do you like or dislike about your current business? What would you change?

Why Mess With A Good Thing?

These sound like simple questions and that’s because they are. As entrepreneurs, we seem to get ourselves trapped into doing things one way. And why wouldn’t we, if it’s brought us some success? Why mess with a good thing, right? Not necessarily.

One of the problems is that the longer we’re in business, the harder it is to make changes. We’ve managed to survive and maybe even consider ourselves successful or resigned ourselves to the fact that this is as good as it gets, even if deep down inside we know it could be better. But aren’t entrepreneurs supposed to work hard and overcome challenges? Of course, but not everyday!

It’s Not A Fair Trade

Didn’t you go into business to have a better life? I don’t believe anybody goes into business to sacrifice their life or their family for the cause. But so many do and all the long they know it’s not right. It’s not a fair trade, but they do it anyways, and many lose more than they gain.

So, what if you could do a “do over”? How would organize and operate your business differently than it is now? Should you have grown bigger or stayed smaller? Would you have a larger staff or less? Should you have targeted different customers? Should you have narrowed your product offerings? Wish you could have more automation or electronic processes?

Don’t Let Fear Stop You

The point is we all make mistakes and head down rabbit holes that take our businesses to places we wish we weren’t. Then, for some reason we lose sight that we absolute control over our destiny. We forget that we can change whatever we want and all it takes is a little courage and faith in our abilities. Don’t let fear stop you from something better.

Transitioning a business to where you’d really like it to be, is not a revolution, but more an evolution. The reality is we have existing commitments to clients, staff and suppliers. Refocusing our business should be done gradually, unless of course there is a crisis. Doing so, gives you the chance to monitor each change you make to ensure they are impactful and taking you where you want the business and your life to go.

Don’t Overwhelm Your Organization

Alternatively, the revolutionary approach risks alienating employees and customers and potentially overwhelming your organization with changes that can’t be managed. Doing too much too fast can leave you worse off than before.

So, what if you could do it all over again? What do you wish your ideal business would look like? Write it down. Don’t let the fact that you don’t know how to do something stop you. You can learn how or find someone who does know and get the help you need.

The objective is to get started down the road to reinventing the business you really want and it all starts with the simple question – What if?

You may also enjoy Define Your Own Success

An interesting read Shoe Dog

Copyright © Greg Weatherdon 2017

Sign up above to receive email notification of the latest update to this blog.

 

Get More LIFE Out of Your Business

You shouldn’t be the hardest working person in your company.

Many small business owners find that even after the struggling start-up years, they’re working too many hours and still managing every aspect of their businesses.

Greg Weatherdon has been there, done that. As an entrepreneur, he learned not only how to get a business to the point of running smoothly, but also how to reduce the number of hours he worked, delegate more responsibility to his employees, and take longer vacations while his business chugged along like a well-oiled machine. And now he is providing the secret to success.

Do you suffer from any of the following?

1. Business ownership isn’t living up to the dream.
2. Endless workdays.
3. You can’t find good people.
4. Profits are less than expected.
5. You can never take a vacation.

You’re not alone. But there is a solution. As Greg demonstrates, with some time and effort, you really can Get More Life Out Of Your Business.