Bounce Back: Coming Back from COVID-19 with Rich Mowrey
How do you handle the challenges of strange economic times? The truth is, even experienced business owners and other professionals who have been through recessive times before are struggling to come to grips with the current crisis. Enter Rich Mowrey, and his new book, Bounce Back: Survive and Thrive in a Business Crisis.
First, let’s start by simply saying there’s a lot of business advice out there, some good and some bad, and some that just doesn’t offer a lot of insight. That’s not really the fault of the authors of that advice. These are unprecedented times, and we have no idea how long the crisis will last, or how many times businesses will be able to reopen and shut down before they just aren’t able to do so again.
Mr. Mowrey’s advice is different. He takes a high level, common-sense approach that can actually help any business regardless of what the current crisis may be. Here are some of the highlights.
Finding a Way to Survive
This is where nearly any business is starting at the moment. How do we survive the current crisis? Bounce Back offers some great advice:
- Don’t Run out of Cash. Yes, this involves planning and some of the other steps outlined in the book. But you can’t operate without cash, so running out isn’t an option.
- Never Operate without a Written Business Plan. This is solid advice even absent a crisis. Even if the business plan changes and evolves all the time, have it written down. Edit it, and print it out again.
- Never Give Up. As soon as you stop trying, as soon as you give up, you’re sure to fail. This may be hard to do in tough times, but if you are going to “survive and thrive” it’s essential.
Mr. Mowrey also talks about the financial future, and what it looks like. Much of that is out of your control, but what you can control is your own finances and the way you run your business during these times.
Bounce Back offers some great insights, earned from years in business, on how exactly to do just that.
Innovation and Reinvention
You need to take proactive and innovative measures to survive, depending on your business niche. No matter what you do, there are some basic principles you can embrace. The key is that “before you market what you are, you must know what you are.”
Bounce Back cites the example of Penn Central, a railroad company that declared bankruptcy because they failed to realize they were in the transportation business, not the railroad business. While others leveraged trucks and planes, Penn held on to the wrong identity.
And even that identity was wrong. Do you know who you are and what you are as a business? What industry are you really in? Are there changes and innovations in your industry you are not adopting?
- First, reposition to increase effectiveness. Determine the industry you are really in, and actually be in it.
- Do market research. One entrepreneur recently said, “You’re not restarting your business. You are starting your business. Your customer’s habits have changed over the last six months. You need to change with them.” What are your customers doing differently now? How will you reach them in new ways?”
- Develop new market knowledge: Ask questions. Survey. Find out how you can make it.
One business owner with an event business might simply walk away. Another sees an opportunity and shift to a virtual event business model and thrives beyond surviving. Think like the second business owner.
Where do you get the funds to continue operations? Bounce Back offers several solutions, from your banker to friends and family and retirement funds, and offers practical advice about leveraging all of them, including remaining friends with your friends and family.
While friends and family are not always a good source of funding, small amounts of high-risk funding to maintain or resume operations might be possible. Just make sure they understand and accept the risk, and promise them returns when you recover, just like you would any other investor.
New partners, like a Private Equity Group (PEG) and even using your retirement funds may be options. The key here is to consult with experts, ones that know your business, your market, and your recovery strategy.
Want more detail? Grab your own copy of Bounce Back today!
Before you take action, it’s never a bad idea to take a moment for some caution. You’ll want to look at pricing strategies, the real cost of debt, and review your cashflow plan.
Also, understand there are some common strategy mistakes businesses make. Know them, and don’t repeat those errors.
Once you have looked at everything objectively, it’s time to make a plan to thrive. Even if you plan to exit your business at some point in the near future, understand that investors like a healthy, growing, and thriving business. If you’re going to get the most out of your business exit, you need a plan to thrive.
But thriving is about more than that. Remember your initial enthusiasm for your business and the reasons you started it in the first place? Thriving can help you regain that enthusiasm and rebuild your confidence and simple enjoyment.
Want to learn more about Rich Mowrey, his books, and the right strategy for running and eventually exiting your business? Check out his website here.
I highly recommend you grab your own copy of Bounce Back: Survive and Thrive in a Business Crisis today!
And if you’re in California, and you’re ready to sell your business for whatever reason or just want to learn more about exit planning and what your business is worth, check out the industries we specialize in. Then get in touch today. We’d love to talk to you no matter where you are on the journey to sell your business.