26 May Steps Businesses Should Take to Combat COVID-19’s Economic Impact
The economic downturn of 2020 has many brokers wondering where to cut expenses and how. Smart businesses owners are also wondering what proactive steps they can take to try and salvage as much good from the pandemic as possible. In our latest roundtable discussion, our team of panelists tackled these important issues. Both business brokers and business owners are now faced with tough decisions. But making smart choices now could mean the difference between surviving and becoming a statistic.
The panelists for this discussion included Bob McCormick, Managing Partner at Murphy McCormick Capital Advisors; Scott Bushkie, Founder and President of Cornerstone Business Services; John Howe, past chairman of the M&A Source and current chairman of the International Association of Business Intermediaries; and Terry Lammers, Cofounder of Innovative Business Solutions.
Terry Lammers’ advice was that you have to step back, hit the pause button and look at your expenses and recurring revenues. In particular, Lammers feels that it is essential to consider deferring any expense that can be deferred, for example, membership fees. He points out that banks are willing to defer 90 days’ worth of principle and interest payments on loans. Business brokers and business owners alike should take a look in this direction.
Surviving the economic downturn of 2020 is about more than knowing where to cut. Knowing what steps, you should be taking also plays a key role. Now is the time to be working twice as hard. The pandemic isn’t an excuse to take a vacation. Instead, you should be picking up the phone and calling your clients and prospective clients. You should be thinking outside the box and looking for ways to help your clients and build your business. Not being able to work with clients face-to-face isn’t the same thing as not being able to work with them at all.
George Giles zeroed in on the marketing side of the equation, noting that cutting advertising costs might not be in your best interest. Giles believes that right now might be the perfect time to take steps towards improving your SEO position. It is tough to argue with his thinking. Right now, a large percentage of businesses are pulling back on advertising and SEO. This means that if you take steps to improve yours, you may be able to leapfrog over your competition.
Scott Bushkie’s firm is currently using the pandemic as an opportunity to go out and add new team members. There is no doubt that the economic downturn has put some stellar employees back onto the market. Investing the time to find those employees could transform your business both now and in the future.
Finding ways to help your business is, in part, about self-reflection. As Bob McCormick pointed out, now is the time to determine how we can spend our time and money more wisely. However, taking these steps requires one to be very practical and honest with yourself. Now is not the time for delusions.