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All In Or Out? How Business Owners Can Deal with COVID’S Cloudy Future.

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All In Or Out? How Business Owners Can Deal with COVID’S Cloudy Future.

As the coronavirus pandemic continues, small businesses have reopened across the nation but certainty and optimism are a long way from being restored.

Spikes in infections in many states, double-digit unemployment, consumer and lender concerns, and steep economic challenges in the wake of a long shutdown make it difficult to forecast if and when many companies will fully recover. Small business owners – many of them baby boomers and in the retirement age range – are in a difficult position trying to decide whether to risk staying in business or sell and cut their losses, says Michael Sipe, author of The AVADA Principle and founder of the consulting firm 10x Catalyst Groups (www.10xgroups.com).

“We are in the early stages of a depression that’s going to go on quite a while,” Sipe says. “Many small business owners are in their 60s and 70s, and they’re tired and beat up. Some recovered from the financial collapse of 2008, but now they’re getting hammered again.”

“Customers and employees are scared or nervous. The supply chain is a big problem, and there’s this crazy situation where prices are going up because of the shortages, but meanwhile we have a depression because there aren’t enough transactions.”

Sipe offers the following suggestions to small business owners as they try to sort out their future amidst so much uncertainty:

Quit. “A lot of people are going to do that,” Sipe says. “And if that’s the decision, they should quit fast. Don’t drag this out. One of the things that happened in the recession of 2008 was people refused to face reality, and it cost them everything, their savings and retirement. If you’re 60 to 70 years old right now and don’t know if you can gut this out another 10 or 15 years, then cut your losses. You’ll have a little nest egg now as opposed to spending all of it trying to bail the business out.”

Reinvent. “If you’re not going to quit,” Sipe says, “then you’ve got to change. Just slugging it out and hoping it’s going to get better or that it will get back to normal – that kind of thinking is ridiculous. We have huge structural problems as a country. So if you’re going to reinvent, you have to come back to the fundamentals of business. The owner has to back up and say, ‘What are the fundamental concerns of customers we are actually trying to address here?’ And focus energy on those prime areas that are going to move people to pay a good margin for your product. Don’t ask why it’s not easier; ask how you can get better.”

Be flexible. Given the fluid state of our world, Sipe says changing some of your business model and processes may have to become a habit. “The next thing business owners have to do is realize what they changed today may need to change tomorrow,” he says. “The innovation has to happen every day. That has a lot to do with listening to customers and anticipating what they would respond to. Engagement with customers and engagement in the innovation process for owners is absolutely critical. If an owner is not willing to try and get that figured out with and for their customers, they’re going to fail.”

“The business has to be infused with a fresh energy and a fresh passion,” Sipe says. “If you’re not going to quit during these extremely difficult times, that means you’ve got to get back in the game. And you’ve got to play hard because this is going to be tough.”

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Michael Sipe, author of The AVADA Principle, is the founder of 10x Catalyst Groups (www.10xgroups.com), which helps entrepreneurs grow profitable and thriving businesses organized on a foundation of Biblical principles. Sipe has also enjoyed a successful 30-plus year career in mergers, acquisitions, and business development as the founder of CrossPointe Capital, a middle market investment-banking firm. In that capacity, he consulted with and evaluated over 5,000 companies and has provided advisory services for approximately a half-billion dollars in business sales involving hundreds of companies. He remains active in transactional work and has been a key advisor in mergers and acquisitions projects covering a multitude of industry sectors.

small business

How to Lead a Small Business Through Coronavirus and other Troubling Times

With the coronavirus shaking up the economy and upending the day-to-day operations of businesses, it’s perhaps more critical than ever that corporate CEOs and small business owners summon up all their leadership skills.

Employees who usually are just down the hall are now working remotely from home. The supply chain is disrupted. And customers and clients may be changing their spending habits.

But, as important as business savvy and financial expertise can be in riding out all the economic effects of the pandemic, other traits also come into play and maybe just as essential, says Marsha Friedman, a successful entrepreneur who still leads a business she launched three decades ago.

“One of those essential traits is courage,” says Friedman, founder and president of News & Experts (www.newsandexperts.com), a national PR firm. “Thirty years ago when I started my company, I probably would never have said it takes courage to lead a small business, but without it, I assure you, you’ll fail.”

Friedman, who is also the ForbesBooks author of Gaining the Publicity Edge: An Entrepreneur’s Guide to Growing Your Brand Through National Media Coverage, understands this first-hand. Her firm, like many businesses, endured tough economic times after the 9/11 attacks. Revenue dropped and bankruptcy loomed as a real possibility.

“I had to figure out how to turn my company around,” she says. “It took courage, endurance, and perseverance, but I knew I could not go back, so I had no choice but to go forward.”

Courage is just one of what Friedman calls the 5 C’s for building and maintaining a successful business through good times and bad.

“They’re the guiding principles I’ve learned through the ups and downs and all the mistakes,” she says. “They can work during the difficulties we now face as well.”

In addition to courage, Friedman’s other C’s are:

Caring. First, care enough about yourself and your dreams to believe you can achieve success even in these daunting times, Friedman says. “Just as important is caring about your staff and creating a positive work environment for them despite the troubles we face,” she says. “Be supportive of them throughout this situation that is bringing additional stress to everyone’s lives.” Finally, a good business leader cares about customers, Friedman says. Be willing to listen to their concerns, take responsibility for mistakes, and correct them.

Confidence. Most people have faced and overcome challenges in life. The confidence that allowed them to prevail over those challenges needs to be brought into play in business more than ever right now, Friedman says. “Believing you can reach for and achieve your short-term and long-term goals is essential to getting you there,” she says. “Maintaining your confidence is important to get through these unsettling times.”

Competence. It’s critical to stay up on the disruptions in your industry that the coronavirus is causing. “If you’re forced to downsize, this may be the time to reorganize and tap into the skills and abilities of your remaining team that are different from the roles you hired them for,” Friedman says. “That’s why it’s always important to have hired competent people who you can rely on no matter what the situation.”

Commitment. Stay dedicated to your goals no matter how difficult that becomes during these challenging conditions. Friedman says there may be times when this will be not only difficult but downright painful. That was the case for her during those tough times after the 9/11 attacks. “I had to make drastic cuts, including letting go of beloved employees,” she says. “But I never wanted to suffer a failure, and so I stayed committed to the goal and succeeded in pulling the business through those rough times.” 

“As we face the current challenges, you have to stay the course, remain positive and show caring for everyone related to your business,” Friedman says. “Most of all, no matter how dismal it seems right now, you need to have confidence that you are going to get through it.”

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Marsha Friedman, ForbesBooks author of Gaining the Publicity Edge: An Entrepreneur’s Guide to Growing Your Brand Through National Media Coverage, is a successful entrepreneur and public relations expert with nearly 30 years’ experience developing publicity strategies for celebrities, corporations and professionals in the field of business, health and finance.  Using the proprietary system she created as founder and President of News & Experts (www.newsandexperts.com), an award-winning national public relations agency, her firm secures thousands of top-tier media placements annually for its clients.  The former senior vice president for marketing at the American Economic Council, Marsha is a sought-after advisor on PR issues and strategies, who shares her knowledge both as a popular speaker around the country and in her Amazon best-selling book, Celebritize Yourself.