If your business is not recession proof, let’s start a conversation about advisory services.  We can guide you through a troubling COVID-19 maze of business pitfalls and opportunities.

If you thought there would be a COVID vaccine by now, you aren’t alone. After all, isn’t it a global goal, and aren’t we all “in this together”?  In an environment where the efficacy of the proposed vaccines is questioned by many, and more shutdowns are threatened, it is no surprise that many small business owners struggle just to maintain, let alone improve their solvency.  What if there is a way to not only survive, but to come back stronger than pre-COVID days?

Making the Turnaround

Making this kind of turn around will take strong leadership, resilience and resolve, but you have that in spades.  Americore advisory services supplies the innovation, team approach and reimagination of how to approach the turn around.  You made a great business plan, and it worked up until everything changed in 2020.  Businesses lost foot traffic overnight, lockdowns happened all over the world and people became afraid to buy or to take any action at all.

The first step in renewal involves reimagining your business, to focus on three areas of recovery: revenue regeneration, reconfiguring operations, and accelerating use of digital solutions.

Revenue Regeneration

Given time, companies would be able to regain revenue streams as the crisis subsides, but today, time is not your friend.  Before the pandemic, consumers were already altering their buying habits, but new fears have accelerated the process.  Look for the revenue opportunities, from new demand based product lines to new revenue generating programs available.  It is critical to identify primary sources of income.  This becomes the basis for immediate moves that need to happen prior to any recovery.  Those moves include things like: initiating targeted campaigns to win back lost customers, informing your customer base of the steps you take to ensure their customer experience remains safe and healthy, and use real time data to adjust price points, and spend resources on the areas of business where you can see real growth.

Reconfigure Operations

Pay attention to how your workforce works best, then implement that model.  Keep rethinking – from productivity, to product lines to digital marketing and sales.  Companies need to think long term and position the business for that mindset.  Think action as priority over research.  Think market testing over analyzing.  Encourage teams to step up and have daily concise team updates lasting less than 30 minutes a day. Keep moving, as time is of the essence. 

Digital Solution

The entire business world has shifted to digital amidst the Covid-19 crisis.  It is not enough to simply shift. You need to expand your utilization of digital tools.  Increase your digital approach, such as data gathering, insights, faster decision making and consumer connections.

Act with a sense of urgency because immediate action is urgent.  Enjoy stronger business recovery amidst COVID-19. with Americore can help you achieve your business goals. 

People are concerned about their financial futures, many, looking for business advice in the pandemic economy.  Businesses either improved from the demands enhanced by the pandemic or worsened as buying patterns changed.  According to Financial Advisor magazine 51 percent of Americans feel the pandemic economy is worse than the 2008 recession.  In thirty nine percent of households earning over $100,000 a year, people  have been withdrawing money from savings and retirement to pay bills or help friends and family pay bills, and it may take more than five years to recover the withdrawals made during 2020. 

Since health professionals warned of a second Corona victim wave in the fall of 2020, concerns about further pandemic financial impact are reasonable.  The fall 2020 COVID-19 wave is here, and countries and states are responding with eminent curfews and shutdowns.  If you are trying to make crucial financial decisions, here are some of the top business advice for the pandemic economy that Business Support Professionals are offering clients. 

Wait for Markets to Calm…

Wait for market volatility to subside before making major financial decisions.  People are beginning to come to terms with the impact of Covid-19, and as cooler heads prevail, the markets will begin to reflect more stability.  You will be able to assess what real direction your holdings are going and what changes you should make.

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Update Your Goals…

Another frequent advisory recommendation is to take the time now to update your short and long term goals.  When you created your business plan – and probably several times since then – you developed and revised your short and long term goals.  Because of the challenges created by the pandemic, if you have not already done so, it is vital that you revisit those goals and determine whether they match the direction your company is going. 

Perhaps you need to take your firm another direction, developing goals for the short term may help you figure out the best way to meet your immediate goals as well as your long term plans. Americore helps clients envision the future they want, and then facilitates materialization methods to reach that future.

Borrowing by businesses, already high compared to gross domestic product, has spiked during as businesses borrowed to weather the weakened pandemic earnings.  The NY Times reports a “growing mountain of corporate debt”.  As people around the world brace for continued economic struggles, optimism blooms with news of a vaccine that is 90% effective.  Hope for a quicker pace of economic recovery is blooming but planning for success is not always enough.  Today, quick, correct responses can create a totally different future for you. 

Get Professional Help…

And the third top piece of advice is a reminder to get professional help, whether through Americore’s Advisory Services or other professionals. You do not have to deal with the Pandemic   Americore has built its business on guiding business leaders to rare blue apple programs and benefits that can enhance the future of your company.  We have seen economic turmoil before and have suggestions that can help your business not only weather the storm, but actually become stronger from it.  The initial discussion costs you nothing, and could change your future.  We should have a conversation.  You’ll be glad we did.

During any slowdown, there are three traditional ways to manage reduced cash flow.

Reduce costs.  An employer once told me when cash flow was slim, cutting expenses could net him the same money as bringing in more cash through increased sales.  If you can reduce operating costs you can ease the strain of shrinking cash flow.  Make a list of every possible expense that could be cut, and when it is complete, look at the effect each cut would have on your business.  Remember that this may be a short term economy downturn, so before cutting human resources think about whether you will have enough trained workforce when the economy resumes. 

Prioritize cash generation.  In a downturn, there is still consumer demand, but you may need to shift your focus to direct it to your business.  By concentrating on products that you can charge more for, but which cost little, you may be able to improve your cash flow.  

A weight loss company changed its advertising theme quickly after the lock downs spread across the nation, to a warning message to men who were living on drive through food. “you know where that ends up.” The ad then showed them how easy it is to get their healthy meal plan food delivered to your home so you can heat it and eat it.  Customers could get in shape during the lock down, and emerge from it looking and feeling great.  It worked, and sales rose. 

Fashion companies went to work producing face masks to keep money coming in.  Brewing companies began making hand sanitizer to boost disappearing supplies…you get the idea.  Get creative on how to make your brand more relevant to the needs of your customers, even as those needs shift.  The following are some thoughts on other income strategies:

1. Go Virtual.  If your store is retail items, sell them in an online storefront that allows checkout directly on the website. Some business owners shifted their product line to include face masks, whether as a fashion accessory or as an advertisement/business logo opportunity.  If you have a gymnasium, yoga studio or martial arts Dojo, you can offer subscriber classes for your customers to train, stretch, or work out at home.
2. Re-brand for easier online sales.  Packaging is now more about delivery than about floor display.  Make it easy for your marketers to get your products to consumers.
3. Offer curbside pickup and delivery services for any kind of consumables, like grooming items or pet supplies.  Grocery stores and restaurants have been offering this for a few months now, but there are many more products that could be sold this way. 
4. Stay in communication with your customers.  If your hours, or business rules have changed, your website and social platforms need to reflect your new hours and other changes, such as mask and social distancing guidelines. 

Generating cash usually comes from sales but it can also come from alternative financing.  Give us a call at (747) 224-8110  to go over the possibilities.  There is no charge up front, but we think you will find the conversation invaluable.   

Empower your team.  You need them now, more than ever, and they need to know what is happening in your company.  By being transparent about your business goals and the metrics, you can motivate your team to help you preserve their incomes.  Sometimes it happens that a team is well intentioned, but they don’t understand those metrics.  You may be able to walk them through a sample P&L, so they understand the normal business balance between expenses and income.  When an employee volunteers a way to improve cash flow, show you appreciate the input, whether or not it can work for your firm.  You want to encourage good idea flow and the understanding of the impact of everyone’s job.

Americore has been helping business owners strategize through both rich and lean economic times and we can help your firm’s team with developing customized strategies for your situation.  Contact us or call us at (747) 224-8110  to open the conversation.  You’ll be glad you did.