Momentum - Business to Business Online Magazine MOMENTUM May 2020 | Page 34

FROM THE BUSINESS COACH MIKE HILDERBRAND, BS, MBA ActionCOACH of Galveston [email protected] www.galvestonbizcoach.com PART 1 SURVIVE, DRIVE, AND THRIVE I have a client who was hit particularly hard by the coronavirus and the resulting shutdown. Her business, a hair salon and spa, depended on clients physically coming to the salon to purchase hair services as well as hair care products which she carried in stock. When the social distancing restrictions were announced in mid-March, she had to furlough her team and close her doors, and was left with no revenue coming in. Like many small businesses, she had little cash in reserve and no cushion to pay her considerable fixed costs. She hunkered down at home, broke out the wine and prayed that they would be able to re-open soon. Depression followed - but not for long. MINDSET We are fighting a coronavirus battle on three fronts: 1) the virus itself, 2) the economics resulting from the virus, and 3) the dangerous mindset resulting from the economics. Mindset plays such a critical role in owning a small business, yet it is widely misunderstood and ignored. Many business owners are going through a range of emotions similar to what we experience following the death of a loved one. Shock, denial, anger, frustration, depression, followed by acceptance and then – and only then – problem solving. This is a natural sequence of emotions, and it is normal, but too many times people are stuck in the depression phase and are unable to move on to acceptance and recovery. SURVIVE This is not the end of the world. There is no asteroid headed toward us that would wipe out life on earth forever. This is an event in history that has a beginning and an END. Yes, this pandemic will come to end, we just do not know exactly when. But there is light at the end of the tunnel as restrictions ease and life starts to return to “normal”. Once my client accepted this reality, SURVIVAL was the name of the game, and it was GAME ON. First, she needed cash flow relief, so she was the among the first to apply for a Cares Act PPP loan. She got it in the first round. She requested and was granted a 30-day deferral on her monthly rent. This bought her some time and flexibility. She communicated with her team continuously, encouraging them and relaying information as it became available. She stayed present and visible on social media. PIVOT She contacted every one of her clients during this time to give them updates on her status and reschedule appointments. During these conversations she became aware of a growing issue in her client base – ROOTS! Those clients who previously had hair color treatments at the salon were now needing touch-ups. They also needed new supplies such as shampoo and conditioners that were sold at the salon, but the salon was closed. So, she found an innovative solution that not only fixed her immediate client issues but also provided a new revenue stream for her salon that would be sustainable into the future… NEXT MONTH PART 2: Find out how my client pivoted her business and changed her trajectory, forever.