It's not too early to learn Thinking From What You Can Learn The Corona Virus Pandemic Nightmare, while this pandemic is a one-off experience (or at least we hope it is!), it has highlighted some business mistakes that you won't want to repeat after the quarantine has ended.
Here are three of the most important of these lessons:
One of my customers has three parts in his business: a fleet operation, a grocery / fuel business and a rest area. His fleet operates a large part of his own products and can transport them for others. Its supermarket sells to consumers, while its truck stop is aimed at truckers. My customer says if one or two parts of the business fail, part is out. It is very rare for all three parts of the business to fail.
His observation also applies in this pandemic. His supermarket / fuel business is down because people are not traveling. However, in-store sales are stable as consumers buy groceries. Its fleet is declining slightly, but it is now attracting various customers. Sales of truck stops are declining, but not over, as truckers are still getting through.
What about your business? Do you rely on one type of customer or industry? It may be easier to sell to this customer. However, they are vulnerable when this type of customer suffers a setback or the industry is experiencing a downturn.
Now think about diversifying your business so the next challenge is one that you can successfully tackle. It is often too late to formulate an effective survival plan when a crisis arises. While it may be too late for this crisis, it is not too late for the next one.
You know when you read the Wall Street Journal or follow the stock market that the companies doing the best during the COVID-19 shutdown are the companies with cash. Why are you feeling better? Because when business came to a standstill, as with Coronavirus, companies that have so far managed to end the business have the strongest share performance.
Cash made it possible for them to survive. Cash has given them more options than just closing their doors. At least they could keep their employees on the payroll. Companies without money have been forced to lay off or shut down people.
Yes, your company should have a cash cushion. This cash rule applies more to managing your personal budget. People who make the mistake of spending too much make their lives more stressful. Stress is an emotional component that is particularly bad for sellers. Your job is to instill confidence during your sales discussions. How can you safely make buying recommendations if you absolutely want to make a sale? You can not.
Now is the time to examine your spending habits. You may even have seen your expenses drop now because you are not driving, commuting, or eating out. Make a plan to live within your means and learn what is more important to save. Having money in the bank is a great stress reliever, and less stress makes for a more confident seller.