Fire Sale
Act 1 Scene 1: Your small business just took a major body blow, and you’re reeling in shock. What do you do now? Starting with these seven simple steps can help you cope, survive, even thrive after the dust settles.
Step Back and Separate Emotion from Fact
The first reaction is rarely the calm reaction, and the first response your brain comes up with is probably not the most healthy one for the recovery and long term success of your business. Recognizing this will help you to do an objective damage assessment.
Assess the True Impact
Was that body blow a scratch, a tummy-ache, an amputation or heart failure? Is it The End Of The World As We Know It, or a momentary hiccup? Did that just-canceled supplier represent 80% of your annual sales, or 8%? Does that lost DayTimer really mean that every bit of your schedule is lost, or just your schedule for the rest of the week? Get analytical. Determine just how much of a setback you really face.
Apply the 10-Year Rule
My grandmother used to say, “If it’s going to make a difference in ten years, worry. Then stick around to see if you were right.” A lot of business AND personal wisdom in that.
Revisit Your Strategy
Re-read your mission statement, strategy and tactics. Do they need to change at this juncture? Does this catastrophe mean a change in your overall approach? Jot down some ideas to go over with your Impartial Advisor. (Note: The heat of the catastrophic moment is not the best time to be writing your first mission statement and strategy document. Write them when things are calm.)
Enlist an Impartial Advisor
Involve someone who doesn’t have a vested interest in the success or failure of your business, and talk over your current situation and your next moves. This leaves out employees, spouses, vendors, customers, even nearest and dearest friends. You need someone impartial, not a “yes” person, nor anyone whose feelings or livelihood will be impacted by your decisions.
Step Outside and Look Up
We tiny-online-business-owner types can get very focused on the world as we see it through the computer screen. Stand up and go outside, look up at the sky, look around the neighborhood. It helps put a crisis in perspective to see that the roof is still on the house.
Get Back in the Game
Cave in and throw yourself a brief Pity Party if it’ll help. But only for a little bit. Don’t wallow in the panic mud too long or, like the mastodon in the tar pits, you may have trouble getting back out. Re-enter the game with facts together, an objective plan of recovery, and a sense of humor.
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Casey: Now staring at a ton of ‘lemons’ left behind by yesterday’s business catastrophe, and wondering just how many gallons of lemonade I can make from THAT.
great tips! For some reason, I loved the Step Outside & Look Up tips. Reminds me of a bible story :)