But what can I do...

It's Thursday the 12th March 2020, I'm sitting at my kitchen table whilst my thoughts are dominated by the world’s current crisis.

Worldwide stocks and shares are crashing as the markets hit the ropes. A perfect storm has formed:

• COVID 19 - Currently responsible for 127,810 infections and 4717 deaths.
• Brexit - Responsible for years worth of uncertainty in the UK and European economies.
• USA V China Trade War - Stifling worldwide growth through hundreds of billions of dollars of tarrifs.
• Russia V Saudi Arabia - Oil price war which has seen 25% reduction in price of oil.
• Global debt of 257 Trillion

The panic buying brought about by Coronavirus displays that the people of the UK are undoubtedly worried, in the main; but I wonder if they are as worried as they should be?

Running two monthly business networking groups and attending others regularly, means that I have the huge pleasure of spending time with a rich and diverse set of business people. The business community in Oxfordshire and Berkshire are a brilliant bunch of supportive, friendly, intelligent and insightful people. Collectively, as micro and small business owners they represent part of the backbone of the UK economy, reportedly contributing over 50% of the revenue of the UK. An important, but highly vulnerable bunch.

The reality is that a huge number of small businesses face an unprecedented test. In my opinion, it could be worse than that of the financial crisis. As the pandemic worry increases and restrictions on movement come into place, I fear that a lot of my friends will find their customers missing.

What's struck me over the past few weeks on the Networking circuit however, are the comments that have been coming up time and time again. It seems to me that the business owners that I've been speaking to (including some of my clients) are so focussed on staying positive that it feels a bit like they are putting their head in the sand. Unfortunately, this situation is very real and even more unfortunately, we are only at the start of it. 

BUT WHAT CAN I DO?

There are things that we can all start to consider now, in order to prepare ourselves and our businesses. It’s important to stop. Take a step back. Stick your head up and have a bloody good look around. Proactivity, Agility, Strategy, Planning and a huge dose of Action are what's required.

Some of the things that you may need to think about are:

1. What do you sell? Chances are that if you're in the facemask or soap game, you'll probably do quite well. How can you scale up? If you’re in the tourism or hospitality industry, you may face a challenge... But it's not over, what are the markets that have a chance? If i’m you, I’m getting all over them.  
2. Who your current customers are and what they do. Are they vulnerable to a down turn? If they are, better to know two months ahead that their valuable business has a decent chance if shrinking or disappearing completely. 
3. Who do you want to work with? Who are the people and businesses that will be ok in a recession? They are the ones you want as your new customers. What industry are they in, where do you find them and how best do you communicate with them? 
4. Watch your human resources… If you're in a declining market, it's imperative that you get all over headcount. It's a sad fact that people will lose their jobs globally. You need to look at resources and only keep the people that you can keep busy.
5. Utilise IT. The coming weeks will see tighter restrictions on movement. This will force millions of people to work from home. If you don't provide your team with the resources to work. (A laptop) then you can't be mad if they choose to binge on Netflix. Speak to your IT provider urgently. 
6. What's your cash position? If you spend at your existing rate, but you lose customers, how long have you got until the cash runs out? Do a cashflow forecast, speak with your accountant and your bank manager and be prepared. 
7. How are you communicating? What messages are you sending to your customers about how you're going to continue to serve them, and what you're doing about the Corona virus risk. You need to reassure your customers that you're doing all you can and taking it seriously. 

Theres no doubt that we’re in for a sustained period of change in business. Those that lean into the hill are the ones with the best chance if making it to the bottom in one piece.

I’m truly sorry to be a doom merchant, but I’d rather that, and you take action than not. As always, I'm here to help - [email protected]