The Effluent has Impacted the Air Circulation Device
By now you’ve hopefully made a choice for how your business is going to handle the new world order. The advice/guidance I’ve been imparting is to either hunker down or to lean in. No option for middle ground choices here.
There are two shared action items that fit both scenarios
- Gain control over as much CASH as you can get your hands on
- Close existing rounds if you can
- Draw down credit lines
- Collect quickly from customers
- Get the government aid
And….
2. Rigorously manage your CASHFLOW
- Collect Fast. Pay Slow
- Model your forward looking options
When I discuss hunkering down, I don’t mean a little cutting back or taking a simple time out, I’m suggesting that you look at your business and determine not only whether you can survive but are you going to be stronger or weaker on the other side of the pandemic. If you think that you come out weaker (cash starved, diminished customer base, underlying market premises completely changed) then you should hunker down or seriously consider shutting down completely.
In Hunker Down Mode you should reduce the business to core needs and get yourself and your team to safe ground. Take in consulting work. Take jobs. Survive to Thrive. As a leader you should look at the following:
- Idea/IP preservation
- Basic Infrastructure
- Core Team
- Core Costs
In the end hunkering down is about having the resources and strength to restart when things return to normal and the whistle blows. If you don’t have what you need to go when things get back because you expended all of your resources trying to actively survive then you will likely fail in the end.
If you happen to be part the the narrow set of companies that is doing well in this market then first- Make sure of your position (you don’t want to be blinded by misleading data) and then LEAN IN HARD. Don’t be shy about it.
- Hire quality talent as others are letting them go
- Drive new engagement with your customers when your weaker competition is forced to reduce engagement
- Go hard after new prospects with less competing noise in the market
- Leverage the time out to invest in your platform to be ready when the whistle to restart blows
Get out there and win. Make the bold moves that you wouldn’t have made in the calmer seas. Now’s the time and opportunity to pull ahead if you and your team are prepared for it.
