As the news from around the world regarding the spread of the coronavirus continues to worsen, companies of all sizes are making fast plans to adjust to a business climate where expenses have not changed and revenue may be down as much as 100%!
A catastrophic change beyond the province of any known contingency planning.
Trying to make sense of all this and the effects on your business will be the single greatest challenge of your career. And if you’re near the end of your career, this challenge will make small, anything you went through during the Great Recession or after 9/11.
Guy and I continue to be safely isolated in our home with the kids safe and lonely in theirs. Food seems plentiful around here and we have lots of olive oil; so we should be fine. Guy prays and I hope, that all of you are safe and secure as we ride out this storm together.
WE WILL GET THROUGH THIS!
Last blog, I gave dealers some advice on where to begin addressing some of the effects of this calamity on your businesses. I hope by now that all of you have taken at least some steps to address the “low hanging fruit" that can be easily cut from your operating overhead. Even if you are a small business, just a store or two, there may have been over $1,000 of monthly savings there.
Any reductions you make to your overhead reduces your burn rate and we NEED to get it down FAST! Because that will determine how long you survive and if you are even around selling paint when it's time to recover.
Sadly, we need to chat about the bigger expenses if we are going to make a significant difference in the trajectory.
At the beginning of the Great Recession, my stores had 13 employees. Within a month of that dark October in 2009, we were down to seven AND they were all making 10% less than they were just a month previously.
I fired them all myself; it really sucked. Barnes (just Barnes, like Madonna....only Barnes) told me I was doing the right thing and that he understood. I waited until he left to cry.
But the reality was that had I not made those drastic steps, we