A leading company focused on virtual transformation.
Jairek Robbins knows a lot about managing a small business in a crisis. In 2009, when money markets collapsed, it created its own company, Jairek Robbins Companies, now the advertising training company advises multinational companies, adding Toyota and Century 21, in more than 110 countries.
About 70% of small businesses in the United States fail in their first 10 years, according to the knowledge of the Bureau of Labor Statistics. Coronavirus makes things even more difficult: in the U.S., 69% of small businesses that have earned government investment fear their operating money will run out this month, according to a survey of more than 7,000 small businesses through Alignable, a social network for businessArrayArray
In the UK, one in ten small British businesses closed their doors to coronavirus, and a third idea that the pandemic had been “very damaging,” suggests a study through market research firm 3Gem.
Robbins is the 2014 e-book “Live It!: Achieve Success by Living with Purpose” and in July he gave the impression on John Lee Dumas’ “Entrepreneurs on Fire” podcast to present 3 tactics to keep his business afloat: first, get rid of unnecessary expenses; secondly, review finances at least every other day, but preferably on a daily basis; and third, prioritize profits over everything, which says very few corporations do.
In a subsequent interview with Business Insider, Robbins said small businesses aim to maintain a full year of business expenses in the form of savings, consisting of three-month increments. He also gave recommendations on what to do when everything else fails and staff should be reduced.
The ultimate vital component of managing a small business, especially a crisis, is to protect all vulnerable spaces: owners want to be very attentive to operational cash, Robbins said.
He advised cutting the expense of “carrying heavy” to “get rid of everything that does not paint and that can sink the ship … to turn it into a rocket.”
An undeniable but effective exercise to eliminate unnecessary expenses, he said, is to print your source of income statement, expenses, parts and credit card receipts. Highlight in green everything you surely have to pay, in yellow what you can do without, especially in times of crisis or if you don’t get safe goals, and in red everything that isn’t there.
He stated that with this financial year, a London-based company for which he worked stood out $50,000 in red and stored $600,000 for a year.
To track unnecessary expenses, Robbins advised to review his company’s finances at least every other day, every day if possible.
Sit down, look at the numbers and what works and make a profit to run your business and make sure you’re moving in the right direction and making the right decisions.
Reassess your trading strategy as soon as possible. Don’t talk about what worked before the COVID-19 pandemic if it doesn’t generate profits now, because customer attitudes have changed. Eliminate any concept that doesn’t work, no matter how painful it may be. Sometimes, “we put up with each other so long because we love what worked so much that it starts to sink us,” he said.
More… Small business coronavirus emergency loans end with $134 billion remaining, and there is little economic relief in sight as the pandemic continues
“We want to perceive when it’s time to extend it or just put it aside,” without forgetting it, and “cut that anchor to hang your sailboat in the sand.”
And don’t prioritize profits first. Too often, Robbins said he saw corporations focus on profits and the most popular product or service. Focus on earnings and turn earned money into operational money that can help your business stay afloat longer in times of crisis.
Keep a lot of savings apart, and in health, think enough to cover a full year of business expenses, Robbins told Business Insider.
Don’t panic: you can collect those savings in stages. Start with the purpose of getting 3 months of expenses into your trading account in the form of savings. Then aim for six, nine and 12 months. “If you have 12 months of overhead costs aside, you have a 12-month advantage to keep everything exactly the same in a scenario like this,” Robbins told Business Insider.
If the only option is to delete jobs, show workers that you thought about it as all other features; the above highlighter approach is one way to do it. This will result in your staff doing everything you can to keep them.
Help them get out by suggesting names of corporations or others who know how to rent or may be interested. Starting in smart situations will make it more likely to sign up for your business in larger times, Robbins told Business Insider.