Coronavirus Business Guide: Get Lean!
Coronavirus can either make or break your business. Each business will be affected to differing degrees but everyone will have to deal with challenges during this time. One of the steps to make your business thrive during this pandemic is to Get Lean!
Reduction of overheads and getting your business to a position where it is only paying for critical overheads and nice to have expenses are paused.
This doesn’t mean stopping work with your key advisors, if you have a coach you need them more than ever to create a strategy to get through this. If you have an accountant they should be supporting you to get access to funding quickly, if needed, and map out your likely future cash flow.
This means going through all your outgoings and cancelling things that you don’t use such as software subscriptions.
Then go through and pause any costs that are nice to have but you don’t need them right now such as staff training CPD portals. You’ll be surprised that if you just contact these suppliers and ask them for a payment holiday that lots of the bigger ones will still give you access to the software!
The point here is we are trying to reduce the fixed costs that a business has and therefore reduce the amount of gross profit needed (sales less direct costs such as FB ad spend or staff costs to deliver the service) so there is less pressure to maintain current sales revenue levels.
If your sales drop but you also successfully reduce your overheads you will still be able to make a profit and have positive cash flow.
Businesses at this time would fall into two categories:
- Critically affected by COVID-19 e.g restaurant, gym
- Negatively affected by COVID-19 e.g marketing agency
I understand that if you are in category 1 then this exercise will not remove the need to get additional funding, however we can ask for less (as we need less) and we are much more likely to get it as we can put forward a business case that shows the lender we have tried our best to lean our the business.
For category 2 there is a real chance you could get through this with innovation and become lean and agile.
Getting lean in your business is the first step process to guide your business thrive during the Coronavirus crisis. The next step is to Make remote working effective!
There are 4 ways we can help you and your business now:
If you have been affected by COVID-19 in any way at all, book an advice call here. No sales pitch, no cost – just help.
As you continue to navigate this uncertain economic environment and the government loan application process, remember that you have experts on your side. Get Simon’s Business Owner Survival Kit to simplify and expedite your path to successfully securing your funds. Get Your Toolkit Here
Access a webinar recording of Simon and Tony Robbins from last week. This strategic, tactical and timely discussion could mean the difference between a business that survives and thrives, and one that doesn’t. Watch Here
Keep up to date with all the information on COVID-19 in our resource hub here, which is being updated daily with any new information as and when it is released.