Are you ready for the restart button to be pressed, do you have the war chest to take advantage of the opportunity or have you been lulled into a false sense of security that the Gov'ts around the world will save you?
Let's look at my thoughts on the best ways to restart your business when the Play button is pressed.
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Hey, guys so welcome. How to restart the economy and your business effectively. One of the issues we've got right now. We're all facing is the fact that we can't really do much at all. If you're in a business that's been basically shut down and you can't trade normally you maybe it you know a 100% down you may be at 30% down you may be at 70% down who knows for your individual business.
I've got various businesses and they range from absolute zero to in fact doing better right now and they're busier than they were before. So the reality is you know this there's a broad spectrum. What I'm gonna talk about today is not specific to your business but the general issues that I feel you're gonna face as we start to restart the economy.
Right now the economy's you know the pause button has been pressed okay so effectively we're all sitting here going what do we do let's do some zoom, let's share some names, lets you know do all these sorts of thing, spend some time with the kids, you know whatever it is. Or let's stress, worry and be full of fear. You know which obviously we know isn't productive.
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Look the real problem is this is right now most of the governments around the world are helping us out. Because the pause button has been pressed what they're doing is they're funding us through welfare programs, through furloughing, through government loans and incentives or bank loans or incentives there's a whole range of measures across the world all different countries doing all different things and you know what generally that's a really positive thing that's never happened before. The fact the very fact that they are looking at the individual and the small business and really investing in those is fantastic. For the most part the response and if you look at 2008 response in the recession there it was very much let's help the top and it will trickle down well that failed dismally. What the top guys did was they took that money they bought back their shares they paid massive bonuses and it didn't trickle down and there was a decade of pain for most countries.
So how can we restart this and look the real problem is this is you need to really be weary of this and that is simply this is it anytime somebody gives you a handout okay whether it's you know a cash handout, whether it's an in-kind of whether it's paying for rent or whatever the handout is it creates a dependency relationship. The problem with that is you can keep back you know hey this is pretty good I'm not having to go to work. Yeah, I am only earning 80% of what I was. But you know what I don't have to go to work and I have to travel I don't have to do this sort of things, things are pretty good you know. Sure I'm isolated in the home but you know what it's great. I've got this money coming in hey you know I'm potentially saving money you know some of the guys that I've been speaking to are in a better position now than they were before. Guard against that, you know both for you and your staff you've got to keep active you've got to keep you know focused on where we are going not where we are right now. Now sure look I'm all for taking a bit of a break and recharging the batteries and you know refocusing on the priorities that you know should have been priorities but have been getting eclipsed by work and you know the pursuit of career and things like that.
Bottom line is we are in pause mode now once the governments around the world say right let's press the play button again. What happens well if you're a sales business like our businesses we have a sales business where basically we start the month at zero and the sales cycle takes about three months. For that particular business if the government says right press play furlough stops you're now on your own. I have got three months now yeah to fund that business. Now if you think about it this way I had two months where basically I got to pay all the costs for two months now and I haven't had any government grants or anything like that and yet I haven't had the income coming in. I've got various streams of income and a lot of business owners will have various streams of income where they're not just relying upon the one you know the cash coming in on a day-to-day basis. They might have you know the longer term you know and then they may have you know I you know whatever but there are different types of cash flow and hopefully you've set yourself up. If you haven't then take that lesson away how can you get various streams of income? So if one of those is attacked one of those is destroyed one of those goes to zero you've still got another one coming in which gives you time to pivot, to act, to change and that's really what we need to do. But anyway if it's too late to do that fine.
The issue is cash flow because for those businesses that take three months to get up and running or two months. Travel businesses you know at the end of day when they say press play on the economy all of a sudden people go oh you know what I'll probably hang over for another three months before I start going on holidays just want to make sure my finances are all right. Or maybe the holidays that I had booked I'm not gonna go on now cuz I can't afford them because taking too much of my cash. All these sort of businesses like that are gonna need cash and what I would say is this you know you've got to look at your business cycle work out how you can get cash in sooner, potentially pay cash out later. And I'm not talking about not paying people because the problem is everyone stops paying people then the whole business and that will cause a recession. We don't want that, we want to bounce back as quickly as possible in whichever country you are.
So you know as best you can you know pay later, collect earlier you know and that may be through giving a discount, offering discounts you know it may be through going to your accounts are payable and having negotiating with them on their terms now whatever that is whatever that looks like in your business. The idea is is that what you need to really be doing is getting ready for this potentially you know one two three even you know I had a mate of mine who used to sell aircraft and you know it's a twelve months or two years cycle. If he's been furloughed it hasn't been nurturing customers all those customers now have changed because some of them don't bust their businesses are performing. I mean one of our friends they've got 27 stores and they actually had two now sorry, they're 17 in one country 27 in another. The 17 in one country there shut up and there's no intention to continue that's it that's gone. yeah So that business has gone so and the 27 stores have shut down totally too I mean they're still looking to reopen those or getting rid of some of them and reopening. But you know this is the reality that we may be facing when we come back in. And that's why I think it's now that we need to start thinking about when we press the play button yeah and what it is for you to do.
I think the real thing is for me look there's a whole range of issues because it's not only that it's like you may have run down your inventory and now you're using your cash to stay afloat and then you need more cash to buy inventory so that's going to take time to build up. So you've got a factor in all these things to look at your own business and work that out you know because this is really essential wherever you are in the world.
What are the things we can do so, first of all, positive attitude you've got to have a positive attitude at this. If you're reading the media looking at the news and all that sort of stuff it is so negative it's just gonna get you down. Get some good quality information around you about your business about them what's going on when things are likely to open up. But stay positive in that get some good mentor some good people around you that are talking things up that are going through what you're going and talk to about how they're dealing with this other things. I mean the other day my businesses are in property but yet what I'm talking to you about now is entrepreneurship because I think this is the coal face of what entrepreneurship about. Is about changing with whatever comes at you, yeah and so I think this is really really important that's a positive attitude 100% absolutely have to. Otherwise, you're gonna be down in the doldrums you know and the end of the day.
The next one is pivoting your business yeah if that means that what was you know may now have changed to something else so pivot now. The warning I'll give about pivoting is this there is so much opportunity out there and you gonna say we could do this and we can do that and we could do that what I would say is be very cautious about changing your core business unless your core business is no longer viable okay then I would stick to core business and potentially keep that and maybe look at changing the way income comes in. So you know if you're selling a three-month product that takes three months to nurture and then you know you haven't been nurturing for three months see you know it's gonna take that much to restart well then look for something that brings cash in immediately. Maybe now create a course an online course that you can sell and bring money in seven days. So look at the way you can pivot the business. But be careful not to pivot I mean if an online course is not what you're gonna be able to do and you've got no idea about it then don't do it find something else. It may be you know for one of the businesses we're looking at tyre stores that potentially going broke or that haven't been able to survive that now so what we started to look at is the ones that are in problems and maybe what we can do is go and buy their stock really cheap. So we get cheaper stock because obviously tyre prices have gone up, you know so that's pivoting. You know that's a good pivot because all of a sudden we're not changing the core business we're just going there's an opportunity over here yes we'll take that and we'll put that into there and we can put it out there. That's the correct way to pivot.
It may be a total pivot it maybe this was the core business and now that is with the future of the business. You've got to look at these four things I think the key thing now is to build a war chest okay as best as possible now if that means you've got to go to the bank. You know I know in the UK they've got some fantastic sea bills which is a coronavirus business interruption loan scheme you know Australia's got the same you know so most countries have the same where there's a loan scheme. One of my attitudes has been if someone's prepared to give you money take as much as you can now that doesn't mean take it and use it on personal stuff that means you know to take it and grow your business because now is the time to be setting up. There's not much you can do right now necessarily but as soon as we come back if you can hit the ground running with a plan you know with you know massive action and that's what I'd say it's the final three things is you know so get that war chest in place.
But then and not then but at the same time and actually probably before you start getting that war chest and loaning money in that being is get a plan together. Plan out what it is and where you're going to take your business or where you gonna take your life and this works with personal as well. Whether it be a change in career whether it be whatever you know there's gonna be huge turmoil coming out and massive opportunities right now we're not seeing it most the governments have done the right thing by supporting its citizens whilst this pause button is on. But when the play button starts then that chips it down and how well you perform then is where millions are made. So you want to be one of those people that bounces back quickly and takes that opportunity there.
So look you know and actually what I would say is this yeah for the most part for most entrepreneurs and most of us we've been working our guts out you know and that that hasn't changed and that's not just the entrepreneurs that are everybody has been working their guts out. So take some time to recharge you know take some time to smell the roses as they say because you know you've probably got a month or two before things are going to get back up. If you take 2-3 weeks four weeks of that and just relax recharge your batteries focus on your health focus on your relationships call up a mate you know do a virtual meeting you know, beers and you know on a Friday all right I mean tomorrow we've got a bake-off you know Arlene my wife organised that we've got a bake-off happening a virtual meeting Bake-off which is you know that sort of stuff is awesome. Recharge your batteries but then get in plan out where you're gonna how you gonna come out of this and how you're gonna fund it how you're gonna you know everything about how you do the marketing you know if you need to learn anything new make new skills whatever get on and learn them and that's the time going to do it so plan out that and then you know take massive action.
Now obviously the pause buttons on, so you can't really necessarily take huge action now but once that play button is pressed you want to be out of the gate straight away. Hopefully, you know if you start thinking about hold on what is my sales cycle? how long is it going to take to start getting cashback in? do I need to change the income streams that I've got? you know to take advantage of this or do this or do that that is the key right now.
Alright, guys hopefully it gives you a bit of an insight into what entrepreneurs and what in effect everyone should be thinking. Because you can be thinking about that your own business you know imagine if you can't fantastic ideas to help your business out and tell your boss that and work with your boss to get it done right now. Imagine what he's going to think when we're all through this and there's a promotion to be given or there's a pay rise to be given or even go to them with a proposal and a plan to say hey I'm willing to do this and create this income stream while we're you know on pause button you know but this is what I want. It's amazing the negotiation power you have if you've got a great idea and you're prepared to put the effort and you know everything behind that to make it a success.
So guys get out there, well maybe not get out there recharge your batteries plan and then get ready to get out there and let's all make this you know a huge success which it could be. Alright guys have a great day stay safe, stay healthy and for the time being stay at home and I hear we'll see you on the other side and yeah any support guys make sure you subscribe comments you know I've got lots of videos coming out I'm doing three or four videos a day you can go to www.gladfish.com/covid19 and that's where publishing all those websites otherwise you got Brett's property rents and all around the internet on my social media channels and are yeah fantastic guys have a great day alright see you later bye