The 6 most important things leaders need to be doing to survive this crisis
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2020 has been tough, and it’s true we aren’t out of the woods yet.
It doesn’t matter where you are, we are all affected in one way or another – but going back into lockdown (for Melbournians) is not new territory.
We have done it once, and we will do it again… the last 4 months have prepared you for the next 6 months.
Do not undo the work you have mastered, do not let emotion take over, keep your logic intact.
Think logically and strategically. You must be thinking like a leader. As the leader the business starts with you.
You need to stay focused. Focus on your ideal clients, your quote register, your cashflow. Focus on what will bring money into your business.
Your 26-week rolling cashflow is your biggest weapon to success right now. If you don’t have one, then get one. Knowing how much cash you have in your business – and being able to forecast what your business will look like in 6 months means you can take action today. It will allow you to sleep at night. Cash is the oxygen in your business, and without it, you won’t survive.
Don’t leave things to chance, leave NO stone unturned. You can’t just sit and wait and wonder what will happen – ignorance is bliss, until it isn’t, so make sure you are doing everything you can to ensure your business survives.
The next six months you need to think about the impact you have on your target market, how are you bringing what they need to them and how are you making it easy for them to buy?
Ensure you have alignment with your team, your values, your emotion and your logic?
The 6 most important things as it relates to leadership in crisis…
Survival & Stability
Survival is about cash reserves. Your cash reserves and your ability to protect cash reserves is critical right now. Make sure you spend your money wisely through this time. As I said, cash is the oxygen in your business and without oxygen you can’t survive. This is not a time to be gambling. This is not a time to be taking unnecessary risks.
Stability is about cashflow, your ability to make a dollar as an invoice and have only spent 95c, 80c or 75c. Your genius as a leader through a crisis is about being cash neutral.
This is not a time to go for the kill, it’s about stability.
How do you ensure you have stability for the long term within your company?
Cash and Cashflow plan
You need a 26-week rolling cashflow. You must be able to predict exactly when your money is coming in and when it is going out. Download our free cashflow forecasting tool here or get in touch with one of our business experts for help.
Scoreboards, flexibility and speed
Scoreboards include your quote register, your work in progress register and your 26-week rolling cashflow. Your ability to look at your scoreboards and work out what’s working, what’s not working and what are you going to do about it is something you must lean into right now.
Words are fantastic, stories are great, but the numbers never lie. So, make sure you are across your scoreboards.
Flexibility comes down to being okay with moving, changing, and adapting. The market has been flipped on its head, so make sure you move with it. You cannot keep doing what you were doing and expect the same results.
You can’t sit and wait for things to happen; you must do things at speed. Don’t overthink things, act fast and smart.
What are you assuming to be true? Are you avoiding or missing opportunities because of these assumptions? You must be stress testing your assumptions.
What if your assumption was true and what if it was not true? Make sure you are basing your assumptions on facts and data. Not emotion and imagined perceptions.
Payroll plan being cash neutral
One of the most important keys to leadership in crisis is your payroll plan and being cash neutral.
Your operations is the most expensive part of your business. This is where you can burn through cash. Ensure you have a payroll plan – be clear and transparent with what will happen with your team. Do what you can to ensure everyone keeps their job, but make sure you have a plan and work only at capacity. Be true to your capacity and efficiency audit.
As a leader it’s no good being the conductor anymore. Get off the podium and get to the front seat. Get your hands dirty and lead by example. You’ve got to have direct involvement.
This is a 9/11 event we are never going back to the way it was. However, ensure you adapt, change, and become bigger and better than ever.
Lastly, now is not the time to think you have to have all the answers. Despite isolation, don’t think you need to do this alone.
We are here for all business owners to help weather the storm and to be your guiding light. We are not fearful because we are prepared.
If you’d like to book a call with one of our business experts, then please do that here.
Power to you!
Business Benchmark Group