The Golden Rule For Making Business Decisions During A Crisis

On January 24, 1848, a man by the name of James W. Marshall accidentally found gold on his property in the Sacramento area of California. The city was desolate at the time, but gold has value, so the news quickly spread like wildfire. 

In the next few years, hundreds of thousands of gold-seekers rapidly traveled to the area seeking to get rich quickly. Quickly, the area was overpopulated with so many people that chaos and corruption, like gambling, prostitution, and other forms of violence to the area, created a regional crisis. 

This time in history is known as "The Gold Rush of 1849." The migrants traveling to the area by horseback and covered wagons which were eager to become rich became to be known as '49ers, named for the year they began to arrive.

History is invaluable for learning purposes, and "The Gold Rush of 1849" is no exception. This history lesson reaffirms that when there is an opportunity to get rich quickly, the number of those looking to take advantage of other's success drastically increases, resulting in chaos and crisis.

A crisis creates uncharted waters. History lessons from the "Gold Rush of 1849" are essential to learning how to move forward in times of crisis so that we are making smart decisions as small business owners.

Trying to navigate through uncharted waters as a small business can always be challenging. In uncharted water, small business owners should be alert. 

Currently, the uncharted crisis that most everyone around the world is attempting to navigate through is COVID-19, a virus that has no cure, and that is life-threatening. The virus has shut down the global economy around the world. 

There is still a lot of uncertainty about the virus, and presently, there is not a timeline of when the pandemic will let up. Businesses are shutting down in high numbers, people are ordered to stay at home, countries are collapsing, unemployment numbers are skyrocketing, and people are dying.

So, what is the golden rule this history lesson can teach small business owners?

To slow down! Or, more chaos and crisis will prevail just as it did in 1849 when the area became overpopulated with immigrants looking to get rich.

Yes, leaders should indeed be able to make swift and decisive decisions.

But, recognizing that the number of those looking to take advantage of others during a crisis, those who see a golden opportunity like the "Gold Rush of 1849", those looking to get rich quickly by scamming others, increases significantly. So, do not panic and make haste decisions, slow down.

In times of an extreme crisis, good or bad, there will always be a large number of people and businesses moving in to get rich quick, no matter the cost. The best way to avoid getting burned by the influx of getting rich quick schemes is to slow down and do your due diligence.

A crisis is an extended period of time of intense difficulty. So, when navigating through a crisis, research your options, and do your due diligence. Yes, business owners need to make swift and decisive decisions, but you have time in a crisis. Because in most disasters, there is not an overnight fix to navigate to the other side of the crisis. 

If a business is at the point, they need an overnight fix; they more than likely have more significant issues than the crisis itself.

There is not a guaranteed overnight solution. Scammers look to take advantage during a crisis and will typically make extreme promises to lure their victims. 

The status quo and overnight guarantees typically do not stand the test of time and, in the future, often lead to more chaos and crisis of a different kind. The best solutions to overcome a crisis and make sound business decisions are to slow down, do your due diligence, and make incremental changes that will add up over time.

In Times of Crisis, A Business Must Have A Plan

"A goal without a plan is just a wish." - Antoine de Saint-Exupery

"If you fail to plan, you are planning to fail." - Benjamin Franklin

The Covid-19 virus has certainly caused disruption and desperation, affecting most if not everyone around the world. At this moment, most small business owners are desperately trying to figure out what to do next. Many consumers are trying to figure out how they are going to pay bills in the future.

Like most, I have never experienced anything like this in my lifetime. Like most, I try to spread encouragement and inspiration. Like most, I try to help guide and inspire others with my knowledge and experience to help others who are desperately looking for solutions. 

Right now, small business owners would fit that category. And although my small business coaching services are primarily for small business owners, they are also applicable to most leaders, executives, and company culture builders.

Realizing, most of us do not have time to read a lengthy article, let's get to the meat of the subject.

In times of crisis, time is of the essence.

In times of crisis, time is of the essence to make a plan.

A crisis plan is not the same as a typical business plan. A business plan is more about purpose, mission, and vision in a stable economy. A crisis plan is more about prioritizing areas that can help a business navigate through uncharted waters.

A crisis plan addresses areas of your business that affect your outcomes like profitability and the ability to operate in the future.

Realizing that every business is in a different season of vulnerability, the areas addressed may or may not make sense for your business or apply to your business at this time of crisis. 

As a small business coach and marketing professional, I must also state this is not a public relations management crisis plan. This plan is to help guide and direct management to effectively recognize strengths and weaknesses to help navigate your business to the other side of the crisis.

Here are some areas to consider for a crisis plan:

• Action Plan - high, medium, and low priorities

• Innovation Assessment - opportunities thinking outside the box

• Cash is King - catch up invoicing, collections, etc.

• Purchasing - eliminate unnecessary costs

• Vulnerability Assessment - weak areas

• Telecommuting - equipment, systems, processes, compliance

• Systems & Processes - rethinking status quo

• Communications - team leaders and staff

• Contact list - for quick distribution

• Designated chain of command

• Forecasting - cash flow for riding out the storm

• and many more depending on the current state of your business.

If you already have a plan, congratulations! You are ahead of most small businesses. If you would like another set of eyes to review, I would be happy to help you.

If you do not have a plan and would like assistance, I would be happy to help you.

You may reach out to michael@michaeldmorrison.com.

Addressing Today's Crisis As A Business Owner. What To Do?

Today, many businesses are at a standstill because most of the U.S.A. is on pause with some suggested or required lockdown due to Coronavirus (COVID-19) disease. Many business owners have been forced to shut down all operations with no window in sight for re-opening. Future cash flow has come to a halt. Yet, the liabilities have not. So, as a business owner, what should you do?

Well, when I begin to work with a business, I look for areas that are holding a company back. More times than not, these weak areas are typically a result of the lack of direction and clarity and some form of procrastination. So, in this unknown amount of downtime, the first step to making it out on the other side is to commit to doing something. Anything! And do it now.

Do not wait! Time and time again, history has proven that business leaders who work on their business and not in their business in a downturn generally thrive when things turn around.

Immediately, start making a categorized list of everything you can do right now to work on your business. Categorize your list as High Impact, Medium Impact, Low Impact.

A sample of ideas for each are:

High Impact - Discover an innovative way of continuing to do business right now, enquire about SBA Loan, forecast cash outflows/inflows, catch up on invoicing, catch up on providing estimates, organize your workspace for more efficient production moving forward, etc.

Medium Impact - Find apps or platforms that will make your job more efficient in the future, finish that course you signed up for and never completed, create your buyer persona and marketing plan for the future, re-evaluate your expenses and cut your unnecessary costs like those online subscriptions you never use, etc.

Low Impact - Create better systems and processes for smoother operations, create retention programs for returning clients, re-evaluate hiring/onboarding processes, re-evaluate the profitability of your products and services, etc.

Of course, these areas and action items will vary for each business, depending on what season your business is in or how strong it was before the downturn.

The critical thing is to do something now and not nothing at all. Create a list, prioritize it, then take action. Now!

If you feel like this is a daunting task and do not know where to start, I would be happy to help you get started. Let's find a convenient time to visit over the phone or online.

Start working on your business today for success tomorrow! Reach out to me at michael@michaeldmorrison.com.