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Pandemic Thinking: How to Keep your Head in the (Long) Game

pandemic

Pandemic Thinking: How to Keep your Head in the (Long) Game

The COVID-19 pandemic is crippling and toppling many U.S. small businesses. Often called “the backbone of the economy,” small businesses that are managing to survive face an uncertain future.

As states start to reopen, consumer spending is in steep decline while unemployment skyrockets and many people remain hesitant to venture out. But RJon Robins, founder/CEO of How To Manage A Small Law Firm (www.howtomanageasmalllawfirm.com), says some entrepreneurs find their businesses in trouble because they had the wrong mindset toward customers all along.

“Small business owners everywhere are infected by pandemic thinking,” Robins says. “But they were infected with this thinking before the pandemic. It’s only now the strategic weakness of short-term, fear-based, transactional thinking in all different kinds of businesses is becoming more obvious. Pandemic thinkers ask the wrong question, ‘What can you do for me today?’ Rather than, ‘How can we work together to build a long-term mutually-profitable relationship?’

“Business owners who built long-term relationships with customers and clients can weather this storm. Those who didn’t think this way before can adopt elements of this kind of thinking and they’ll start seeing the benefits almost right away.”

Robins offers small business owners three tips on how to develop long-term relationships that benefit both customers and businesses:

When first meeting, look ahead at the relationship 10 years from now. “The scale of a person’s thinking has a lot to do with whether they win the game,” Robins says. “Look for all opportunities to be of service, even in some small way, to earn the right to call the person a client. Every deal doesn’t have to be a grand-slam. Just get on base. Just get into the game. That way you can discover opportunities to be of greater service and have a client for life.”

Show you care.  “A lot of people don’t know how to show that they care. Ask yourself when is the last time you called to check on a former client to find out what’s happened in their life or business since the last time you did business together?” Robins says, “What are their plans for the future? What can you take off their plate and help them with today even if what they need is just someone to help them think things through? Good relationships built over time are especially evident during the pandemic. Ironically, though, a pandemic is a perfect time to begin a marketing campaign like this and besides, you probably have a lot of free time on your hands anyway.”

Have a long-term business plan. “A business being run without a 12-month, forward-looking budget is like a car being driven with a windshield covered in mud, and on an unfamiliar road with no particular place to go,” Robins says. “A business that is being run without weekly cash-flow projections is like a person stumbling around in the dark in an unfamiliar house. To take an active, consistent interest in your clients and develop programs encouraging them to keep coming back, it helps to have a long-term written plan for your own business.”

“Businesses generate revenue by solving problems for their clients and customers,” Robins says. “And right now there’s an abundance of problems, which is another way to say there’s an abundance of opportunities. Whether you already have or decide to begin developing great long-term relationships with clients, it’s an investment that will pay long-term dividends.”

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RJon Robins is founder and CEO of How To Manage A Small Law Firm (www.howtomanageasmalllawfirm.com), the leading provider of management services  for the solo and small law firm market. In 2019, How To Manage a Small Law Firm was named by Inc. as one of the 5,000 fastest-growing privately-held companies in the country for the fifth consecutive year. A graduate of American University and Nova Southeastern College of Law, Robins is a member of The Florida Bar and The Association of Certified Fraud Examiners.

small businesses

U.S. Metros With the Most Small Businesses Per Capita

Small businesses across the United States face dire circumstances following the COVID-19 outbreak. While each individual small business might seem inconsequential to the broader economy, in aggregate, these firms are critical to the country’s financial well-being.

According to the most recent data from the U.S. Census Bureau, small businesses with fewer than 50 employees makeup approximately 95 percent of American business establishments and employ 40 percent of private sector workers. These 7.4 million small businesses (or 2.27 per 100 residents) also account for roughly a third of total private sector payroll.

Unfortunately, research shows that small businesses and their workers are particularly vulnerable during recessions and other periods of economic hardship. A recent survey conducted by the New York Fed found that even prior to the pandemic, 64 percent of small businesses faced financial challenges in the preceding 12 months. The same survey reported that a two-month loss of revenue would cause 86 percent of firms to take a serious financial action, such as using the owner’s personal savings, taking out a loan, or cutting staff salaries.

Moreover, small businesses in some industries have a larger economic impact than others. Among small businesses with fewer than 50 employees, those in accommodation, food services, and retail trade—coincidentally, the sectors hit hardest by COVID-19—employ the most workers. These industries, combined, account for more than 16 million employees and $362 billion in annual payroll.

Like the businesses themselves, small business employees are also more financially vulnerable than their large-firm counterparts. Data from the Bureau of Labor Statistics shows that fewer small business employees have access to retirement benefits, healthcare benefits, paid sick leave, life insurance, or disability insurance. Troublingly, only half of employees in small businesses have health insurance through their company and only two-thirds have paid sick leave.

While small businesses are a critical component of the national economy, some parts of the country depend more on small businesses than others. To find the metropolitan areas with the most small businesses, researchers at Construction Coverage, a review website for workers’ compensation insurance and construction software, analyzed the latest data from the U.S. Census Bureau. The researchers ranked each location according to the number of small businesses per 100 residents. Researchers also included statistics on the total number of small businesses, the number of retail, accommodation, and food service businesses, and the share of workers who are self-employed. For the analysis, small businesses were defined as those employing fewer than 50 workers.

To improve relevance, only metropolitan areas with at least 100,000 people were included in the analysis. Additionally, locations were grouped into the following cohorts based on population size: large metros (1,000,000 residents or more), midsize metros (350,000-999,999 residents), and small metros (less than 350,000 residents).

Here are the large metropolitan areas with the most small businesses per capita:

For more information, a detailed methodology, and complete results, you can find the original report on Construction Coverage’s website: https://constructioncoverage.com/research/cities-with-the-most-small-businesses

experiment

5 Tips to Help You Lead & Experiment During Crisis

As a leader, during COVID-19 (or any crisis) it can be hard to find your feet and to feel confident in your path. You may feel inadequate, unsure, and out of your depth. That is to be expected. This is leadership like we have never seen before. So many businesses are closed or trying to find new ways of doing things. I believe almost every organization feels like a start-up right now. Uncertain times need new kinds of leadership. We don’t have the answers, only questions, and still, we are asked to be leaders. Being experimental in your leadership approach will help you try things, learn from them, and figure out your next experiment.

These tips will help you find a new center for yourself as a leader:

You are not responsible. It should go without saying, but this is not your fault. This is a global challenge that doesn’t have clear answers. Your people may want you to have answers, but you won’t and you can’t. They will want certainty about their jobs, their income, and their lives. You can’t promise them the future. Encourage them to do their job today and let them know you have compassion but cannot be the answer to their future. Give up being an all-knowing leader and be human. Practice compassion and be collaborative to help your team makes sense of the crazy.

Get bad news out of the way fast. If you have lay-offs and reorgs to do, do it quickly. Make a plan–even if it is a bad plan and clear this from your “to do” list. You will be a better leader with clarity. Kudos if you can be compassionate while you do it. There are some businesses that will not survive this. Don’t hide your head in the sand like an ostrich. Embrace information and communication even if it is bad news. Work on being a good leader in bad times. Figure out what being a good leader means to you. Kindness goes a long way when you are delivering bad news.

Think about a timeline. What is important 1 week from now? What is important 1 month from now? What is important 1 year from now? Some organizations need to be extending their timeline (How will we emerge from this crisis?) while others are busy changing to meet day to day needs (What do our clients need today?). Make sure to orient your thinking daily and consider multiple time frames. Make time to consider your leadership path before you face a day of decision making and are faced with the feelings and challenges of others. Find your own true north as a leader.

Be kind and firm. Your team members may be spinning and scared. Be empathetic and then ask them to get back to their jobs and produce good work. Having meaningful work is a privilege in these times and you can ask them to be achievers right now….today. You can deliver groundedness and purpose as long as they are working. There can be compassion for the challenges they face (kids at home, new environment, etc) but don’t let them off the hook. They are being paid to provide work. Your insistence on them delivering work is part of the work of leadership right now.

Practice extreme self-care. You are your own strongest asset. Experiment to strengthen your physical, mental, emotional, and spiritual health. Reach for the salad and smoothies instead of the martinis and chocolate cake. Exercise. Sleep. Meditate if that works for you. Journal or sit and think. Pause. Ask for help and love from friends. Schedule a virtual happy hour with friends or colleagues. Try and go deeper than you ever have before with your self-care. You have never needed to care for yourself as you do today. Experiment with giving yourself what you need.

You will get through this. You will learn from this. You will do your best and you will do your worst in this. As an experimental leader, it is important that you stay engaged in the struggle of leadership. Try and fail and dust yourself off. Figure out the change you want to see and what the barriers are. Figure out an experiment. Collect data. Figure out what you just learned. Ask, “What is my next experiment?” Go experiment again.

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Melanie Parish is a public speaker, author, and Master Coach. An expert in problem-solving, constraints management, operations, and brand development, Melanie has consulted and coached organizations ranging from the Fortune 50 to IT start-ups. She is the author of The Experimental Leader: Be A New Kind of Boss to Cultivate an Organization of Innovators. For more information, please visit, www.melanieparish.com, and connect with her on Twitter, @melanieparish.

small business

Small Businesses: Here’s How They Impact Communities

Every small business owner knows how important it is to have the support of their community. Luckily events such as Small Business Saturdays help bring small businesses and their local shoppers together in order to benefit the community as a whole. This survey put together by OnDeck, a small business loan provider, looks at small business customers to learn a little bit more about how they support small businesses AND also how the small businesses they
support helps the community in return.

why small businesses are important

ondeck second annual small business community impact survey

why small businesses are important

ondeck small business community impact survey