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or change of ownership . No one predicted COVID-19 , yet it wiped out entire industries in weeks . As an event company , we had a big bite taken out of our hide , but we had already been doing quasi-virtual events and streaming for over five years at that point , so we were down but definitely not out . We also had other sources of income and ways to sell clients other than in-person events . Many of the vendors in the channel who sponsor our events and others were completely lost , unable to get clients because in-person events were their ONE way of securing new clients . We all hide behind the “ It won ’ t happen / can ’ t happen to me ” belief … until it does . So , what can you do about it ?
For starters , identify all the critical “ ones ” in your business and start working on putting in place Plans B , C , D , and E , reducing the dependence on it / they / them . Over the last 10 years , I ’ ve been working on building a highly competent executive team that runs different departments of my organization , removing me from being a “ one ” in any area . While I still have some “ ones ,” they are nowhere near as bad as they once were , but they ’ re constantly cropping up and needing to be dealt with as the business grows . Nobody is “ irreplaceable ” in business . Sure , some are harder to replace than others , but you must not allow yourself to be trapped and held hostage by the critical “ one .”
Second , do what you can to avoid ALL known risks and disasters . While we cannot foresee and avoid ALL crises and bad things , we certainly can do things that mitigate or reduce our chances . A person who smokes three packs a day , takes no exercise , drinks their breakfast , lunch , and dinner , and is as miserable as an old rattlesnake might never get cancer , but they certainly aren ’ t doing themselves any favors by not avoiding those behaviors .
Employees are a big , giant source of risk in every business , so put time and effort into learning how to recruit and hire good people and screen the bad ones . Develop real leadership skills and a code of conduct that you stick to religiously . Monitor constantly for compliance and quality work , and never tolerate an employee who is undermining you in any way , be it insubordination , bad attitude , sloppiness , or outright illegal behavior . You cannot afford it , no matter how good they are at their job or how desperately you need them . As I ’ ve often said , sour milk never turns fresh , and you get what you tolerate . Get ahead of the problem by constantly recruiting for “ A ” players so you can pick and choose the best rather than desperately search for a body to fill a position when you need it .
Another source of risk for many businesses is not having the ability to generate sales on
3 demand . They have no list , no marketing systems , no CRM , no pipeline of opportunities , and no productive campaigns in place to quickly generate income if they need it . They dangerously rely on the “ one ” source of referrals that is fickle and unpredictable at best , thereby carrying unnecessary risk . Hear me on this : You do NOT want to do marketing only when the mood strikes or you ’ re desperate . If you do , you ’ re constantly starting over from scratch and needing twice the money and three times the effort to get it to where it could be with a steady , constant focus . A pot of water is brought to a boil much quicker if left on the stove to simmer rather than building a fire under an ice-cold pan from scratch .
Closely tied to that is carrying too much debt and insufficient emergency funds . I personally recommend my clients pay off all debt , including their home ; have at least one year ’ s income stashed away in cash they could easily access without dipping into investments ; and be fully capitalized with two to three months of operating expenses in retained earnings , in easily accessible cash , and sufficient recurring revenue to cover their expenses in ADVANCE of the month . This is all prevention for events like COVID-19 that hit you out of the blue . It also helps if you find something or someone you want to invest in on a moment ’ s notice . Living too close to the edge of your finances is a risky , stressful ride that can be avoided with intention and planning .
There ’ s enormous resistance to implementing these risk-mitigation strategies , particularly if you ’ ve never experienced a major disaster in your business and things are going “ well .” There ’ s also the big temptation to simply find a “ one ” who can do it all . The one great tech , the one great salesperson , the one great client . These are easy buttons that can lull you into complacency and laziness , but if your goal is to build a sustainable business , you must figure out how to build safety net after safety net so you are not beholden to the easy “ ones ” in your business . n
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