Latest / The SmallBizChat with Melinda Emerson / How Small Businesses Can Persevere Through A Global Pandemic

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How Small Businesses Can Persevere Through A Global Pandemic · The SmallBizChat with Melinda Emerson

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  3, 10, 1, 0, ignition, liftoff,
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  Ending small business failure.
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  Welcome to the Small Biz Chat podcast with a number 1 small business expert Melinda Emerson.
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  Bolinda's goal is to end small business failure, and she'll give you the information
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  you need to succeed and live the life you've dream of.
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  Now here's the small Biz lady herself.
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  Melinda Emerson.
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  Hi, everybody.
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  I'm Melinda Emerson, the small Biz lady.
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  Tonight, we're gonna do a special show on how to handle the coronavirus crisis in your small
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  business.
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  We know you're hurting.
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  We know there's a going on.
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  There's a lot of anxiety out there.
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  I hope to give you some peace of mind.
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  I've got 3 amazing guests, and we're gonna talk about all the different aspects of coronavirus
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  and your business and how you can position yourself to come out on the other side even
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  better.
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  So let me just talk to you about what we do here at small business chat small business chat
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  live is a peer to peer interview show that really gives small business owners a way to get
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  and share valuable information.
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  And the mission of small business chat is to end small business failure.
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  That's why we do it.
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  I really wanted to spend some time discussing how we're all feeling about the coronavirus
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  crisis.
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  You know, we're all working from home, but I don't know about you guys.
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  I've been working from home, so that wasn't a big adjustment.
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  But having my son here while I'm working from home.
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  Yeah.
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  That's an adjustment, but not just that.
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  You know, I'm a professional speaker and marketing consultant.
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  And I don't know about you guys, but a lot of the events I was supposed to speak at talk to
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  work on anything in March, everything in April have been canceled.
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  And a lot of stuff in May is certainly being canceled too.
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  And and I I know for me, it's a very tense time.
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  It's a scary time.
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  And I know that many of you are already starting to feel the pinch.
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  You know, I read a statistic the other day that 44% of Americans do not have the extra money to
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  handle even a $400 emergency in your business.
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  So if you're out here, living paycheck to paycheck or in small business, where we say
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  living contract to contract, things are really tight already.
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  So to have clients that are slow paying, not paying, or having contracts that were promised
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  being pulled back or canceled, all of this stuff is tough.
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  But let me tell you something.
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  What times get tough, small business owners get tougher, and that's what I need to remind you
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  who you are You know, you started your business because you saw a need in the community.
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  You have customers that depend on you, and they still do but they're scared too.
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  I mean, you gotta realize people in business, people with paycheck jobs now being told to go
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  home for a month and work remotely, that is very, very scary for them.
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  So we have to be empathetic.
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  We have to be patient.
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  We have to be thought partners and free brainstormers with our customers.
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  I want you to think about what you can do to better serve your customer.
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  Even if you don't have 2 nickels to rub together.
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  Because let me tell you something right now is not about a check.
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  Right now, is about the relationship.
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  And when you'll help someone, when they don't have budget, I promise you they'll remember you
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  when they do.
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  So I need everybody to just really take a step back and think about you know, I know that, you
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  know, Facebook has created a $100,000,000 fund.
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  They're gonna help 30,000 businesses.
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  I know the federal government is talking about trying to get each of us, you know, a $1000,
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  but listen.
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  You know, that's enough money to get in trouble.
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  That's not gonna help me really solve too many problems here today.
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  So What I want you all to think about now is a couple of things.
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  Number 1, how much access to capital do you have?
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  If you're struggling to make payroll, maintaining your inventory or you've had a
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  sudden cancellation or even a sudden surge in demand can also create a problem if you don't
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  have the cash to fill the orders.
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  You have got to get on the horn and find out where you can get some financial resources.
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  You gotta start exploring your capital options.
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  First thing you gotta do is what is your credit capacity?
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  What is your credit score?
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  If your credit score is decent, you and you have actual positive cash flow, you might be
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  actually be able to go to your bank right now and get a line of credit or a small loan.
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  Now you gotta realize banks do not learn move quickly, and they're not gonna start moving
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  quickly because we're in the coronavirus.
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  So particularly with everybody working remotely.
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  So you've gotta figure out you know, is there an alternative source of of resources you have?
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  What about your credit card?
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  You have any room on your business credit card and you've been paying everything on time.
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  If you've been paying things on time, you can call and get an increase in your line of
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  credit.
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  Now if you owe people and you haven't made payments or you've got a history of late
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  payments, that option isn't open for you.
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  If you have a good relationship, if you've been protecting your credit, if you've been paying
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  things on time, you can call and get more credit.
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  So try that The next thing you've gotta do is if you're gonna go after a a loan, from either
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  a bank or a CDFI, which is a community developed financial institution, You've gotta
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  have up to date financials, and you gotta have your taxes done.
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  If you don't have those 2 things, do not bother because you're not going to be able to get a
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  loan.
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  But if you have a credit score of at least 620 or higher, you've got up to date financials.
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  You've got your taxes done.
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  For last year, not this year, but for last year, then you can proceed with trying to get,
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  some resources from a community development organization or bank.
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  Now if you don't have that, if you can't do that, here's your other option.
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  Friends family, and fellow business owners.
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  Who do you know that would be willing to invest in your business right now?
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  Not as an investment, but Lily as a short term loan.
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  You know, you really wanna talk to people about, hey, I have this much receivables on the
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  street.
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  Can you loan me x for the next 45, 60, 90 days.
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  I mean, those are the kind of conversations you can have.
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  And if you have other business owners who are mentors of you, who are in your circle, who
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  maybe have bigger contracts than you and might be able to low give you a bridge loan.
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  That is what you're looking for.
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  But be really clear.
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  These are loans.
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  You know, nobody's giving money away and do not borrow money from somebody that you don't know
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  when you can pay back, but it's time to open your mouth and tell people that you need help
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  that you either need work or that you need money or that you have groceries.
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  There's all these people out here talking about fake it till you make it.
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  Well, let me tell you something.
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  There's no reason for you to be faking like you're okay and you're not right now.
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  I hope and pray that you have people in your life that you can tell the truth to about
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  what's really going on with your business.
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  Do not suffer in silence.
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  There's resources of people out here who believe in you who support you, and close
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  mouths do not get fed.
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  So you need to make sure that people know what you need and that you're also willing to help,
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  that you're not looking for a handout, you're looking for a hand up, and that's what this is
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  really about.
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  So Let's talk about your your workforce capacity.
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  You need to look at your team and figure out how long you can afford to maintain your staff.
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  And if you can't tell them sooner rather than later if you need to do a layoff.
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  And if it's gonna be temporary or permanent, you don't know, but don't string people along
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  don't have people wondering what's going on.
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  If you think you're gonna have to do a layoff, if you lose one more contract, be forthright
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  and tell your team so that they can plan.
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  The other thing I want you to do is do not stop marketing.
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  Let me tell you something.
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  People who invest in marketing now are gonna win big later.
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  What I have been told from some of the medical professionals that I've talked to is we're
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  really looking at another 7 weeks of bad stuff.
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  Right?
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  People are still gonna be getting diagnosed and you look at the data from the other countries
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  that have really suffered Italy, China.
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  What they're saying is, like, if like, a bell curve.
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  So right now, our bell curve is still going up.
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  It hasn't hit the top yet and started to go down, and it's gonna go up for another 7 weeks.
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  So we all have to be prepared for what's about to happen.
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  Our kids are gonna be home for almost 2 months with us.
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  Uh-uh.
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  You know, that's scary enough.
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  But the other thing too is Business is not gonna come back just like that.
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  So you have to prepare.
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  You have to be talking to people.
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  Everybody's home.
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  So you can send anybody an email right now.
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  They're looking at their computer all day.
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  Right?
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  So the other thing you wanna do is call your soul play clients.
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  People haven't paid you, I would worry them to death about paying you right now.
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  Start with weekly.
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  Go to every 2 to 3 days.
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  You need your money, and you can't get upset or embarrassed to ask people for the money that
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  they owe you.
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  Now let's talk about inventory shortfalls.
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  If you have a a a vendor that can't provide you what you need.
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  You gotta look for 2 others.
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  Or if you do have a vendor, try to negotiate a little bit more relaxed payment terms.
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  If you don't have the money, be honest and say, I can pay you net 60.
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  I can pay you net 90.
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  If they can withstand it.
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  If they're a bigger vendor, they might be able to.
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  They're small like you.
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  They might not be able to, but don't order stuff knowing you can't pay.
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  You need to tell people what's going on in your business.
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  People will always appreciate honesty.
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  And if you've been doing business with people for a while, They will be a lot more flexible
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  with you.
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  Now if it's a brand new vendor, you just started working with, look, they're looking for
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  their money, but you really have to get clear about, you know, what you're doing and always
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  operate in tech in integrity.
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  Now the other thing I want you to think about is check your insurance coverage.
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  Find out if you have business interruption insurance.
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  Some people have it.
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  Some people don't.
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  But right now, it's a good time to call your insurance provider and find out what you are
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  insured for because you might have some insurance relief that might be able to help
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  you.
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  But all in all, listen, guys, it's time to plan.
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  It is not time to worry.
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  It's also time to pray too.
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  Now if you guys have been following me for a long time, what you know about me is that I am
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  a very religious person.
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  And what I know is that god's time is not our time.
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  So this will get fixed.
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  I've been in business 21 years, and I can tell you for a fact He's never forsaken me, and I
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  know he hasn't forsaken you.
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  Now that doesn't mean he doesn't allow us to go through tough times because he does because
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  he's trying to get us to focus back on him.
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  So I do hope that in addition to taking the time right now to plan that you take the time
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  to pray, daily over your business because it will make you feel better.
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  It will center you so that you do not get distracted by all of this negative information
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  that you're con I mean, how many more days do we need to hear?
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  It was the worst day ever in the stock market.
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  Right?
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  It's like it's like every day.
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  It's like the worst day.
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  And then, oh, no.
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  Today is the worst day.
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  It's like, you know what?
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  I stopped looking at it.
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  I can't look at it anymore.
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  Luckily, I'm young enough that I know I'm gonna work for 15 more years.
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  So I'm not worried about it, you know, but the thing is is that perseverance is the number one
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  greatest ingredient required to be a successful entrepreneur.
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  And but I also want you to know this.
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  Innovation has grown out of necessity.
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  What can you do now to help your customers more?
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  You know, what product does the market need that you haven't had the time to develop, but
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  you know the world needs it.
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  You know, what process of systems do you need to tighten up in your own business right now?
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  Why you're not busy is the perfect time for you to document your workflows and tighten things
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  up so that when you are ready to hire people again, you're gonna be ready.
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  What books have you been meaning to read to help you grow your business?
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  You know, whether your phone is ringing or not, there is work to do and it's time to do work.
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  And this is the last thing I'm gonna leave you with.
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  It's time for you to start what I call a storm starter strategy in your business.
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  If you sell B2B, I want you to make a list of 60 prospects.
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  And I want you to work on 5 a day.
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  I mean, 5 calls, 5 emails, 5, you know, reach out connections on LinkedIn.
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  I don't care what it is.
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  I want you to work with phones.
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  I want you to work email.
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  I want you to work LinkedIn.
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  I want you to find articles relevant to these people or relevant to these people's businesses
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  that have recently been written.
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  And I want you to find a smart way to reach out.
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  If you sell B2C, it's time to activate your email list, send out a coupon.
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  You want to incentivize people to check you out see what you're offering.
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  And if you do these things and do them consistently, what's gonna happen is it's gonna
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  start raining money in your business.
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  That's why call it a storm starter strategy.
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  So what I want you to do is remember who you are.
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  This you are bigger than the coronavirus crisis.
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  And I want you to think about how you can use this opportunity to tighten things up in your
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  business because When are you gonna get another opportunity like this when things are a little
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  slow for you to work on your business?
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  I don't know.
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  But listen, I just wanna say again to everybody, you know, We are in perilous times.
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  We have never faced, you know, a global pandemic in the history of the world, and we
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  certainly don't know what tomorrow holds, but we do know who holds tomorrow.
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  And so I want you all to remember that The number one thing you can do for your business
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  is pray over it.
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  And I know that when the sky is falling and everything seems really bad and every day.
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  You hold your breath for a customer to call you and possibly cancel an order or or or in my
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  case, cancel a speaking engagement, but please don't lose hope.
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  Know that this is temporary.
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  Nothing lasts forever, and we will get through this.
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  And if you go back and do some of the things that I talked about at the opening of the show,
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  you know, talk to your insurance provider, figure out how much you have cash on hand,
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  figure out how much credit you have available on your credit cards, So to help you bridge
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  this gap, you know, communicate with your friends and family, tell people what you're
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  going through, and how they can help you.
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  If you do that, you will be better.
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  You will feel better.
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  You will sleep better at night.
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  And as a and also to I know I joked earlier about your kids being home, but hug your kids.
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  Help them with their homework and enjoy having lunch together.
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  Right?
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  So I'm gonna leave you with this.
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  You know, you never lose in business.
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  Either you win or you learn if there's any more resources I can possibly provide for you, head
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  on over to my website.
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  Succeed is your own boss.com.
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  I have over 5000 articles there about how to start and grow and survive in business.
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  If you need something, I gotta it for you.
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  I'm Melinda Emerson, the small bus lady.
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  America's number 1 all business expert.
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  You never lose in business, either you win or you learn.
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  God bless everybody.
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  Thank you for listening to the Small Biz Chat podcast with Melinda Emerson.
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  For more resources and small business success strategies, visit succeed as your own boss.com.
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  Subscribe to this podcast wherever you listen to podcasts and join us next Wednesday.