Managing Business Cost and Cash Flow During The Coronavirus [LNIM198]

Revenue dropping during a crisis? Mark shares four practical strategies for managing your business expenses and cash flow when the economy turns against you, without sacrificing your ability to grow when things recover.

What You'll Learn in This Episode

• Why your existing skills may be more valuable now than your current products
• How to execute a business pivot when your market shifts
• Where to find grants and loans you may not have considered
• A practical cost audit process to reduce expenses without gutting your business

Episode Summary

The economic impact of a crisis hits online business people just as hard as everyone else. Whether you just started your business or have run one for years, losing revenue creates the same urgent questions: Should I cut costs? Is this the time to pull back or double down?

Mark offers four practical strategies for navigating the downturn:

Skill is the new currency. Identify your skills that are particularly relevant right now. The crisis may have created demand for expertise you did not realize was valuable. Skills that were not relevant before the downturn might now be exactly what people need. Look for ways to monetize what you already know in the context of current conditions.

Consider a business pivot. A pivot means making a fundamental change to your business after determining that your current product is not meeting the needs of the market as it exists today. This does not mean abandoning everything. It means adjusting your offer to match what people actually need right now.

Think outside the box. Consider whether there is help uniquely available to you that you have not explored. Loans, grants, and assistance programs exist specifically for situations like these. The Small Business Administration and other organizations offer resources that many entrepreneurs never investigate.

Audit your costs. Create a complete list of every monthly business expense. Look for overlapping services, unused subscriptions, and tools where a cheaper alternative exists. Contact your providers directly and ask for suggestions on managing your bill. Many companies offer hardship discounts or payment deferrals if you simply ask.

Mark's final message is direct: do not let pride get in the way of correctly managing your business. If you are trying to decide between folding up your shop or asking for help, seriously consider asking for help. Find ways to invest, match what the market needs, and take advantage of the situation to help people through the difficult times.

Key Takeaways

• Your existing skills may be worth more than your current products in a crisis
• A business pivot is not failure. It is adapting to serve a market that has changed
• Explore grants, loans, and assistance programs. Many entrepreneurs leave money on the table by not asking
• Audit every monthly expense. You will find redundancies and savings you did not know existed
• Contact providers directly. Many will offer discounts or deferrals during hardship
• Do not let pride prevent you from asking for help when your business needs it

What's Changed Since This Episode

Mark recorded this episode in April 2020, during the early economic uncertainty of the pandemic. The Small Business Administration resources he recommended proved to be enormously valuable, as the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) helped millions of small businesses survive.

The cost-management strategies Mark outlined remain evergreen business advice. The 2020 crisis taught many entrepreneurs the importance of maintaining lean operations and having cash reserves. Businesses that audited their costs and diversified their revenue streams during the pandemic generally emerged stronger.

The concept of business pivoting became mainstream during 2020-2021, with countless businesses successfully adapting their offers to meet changed market conditions. The lesson applies to any economic disruption, not just pandemic-related ones.

Resources Mentioned

• Small Business Administration (SBA) — government resources for small businesses
• Late Night Internet Marketing on Apple Podcasts
• Late Night Internet Marketing on Spotify

Related Episodes

If you found this episode helpful, you might also enjoy:

• LNIM196 — Coronavirus Online Business Tactics: How To Thrive And Survive
• LNIM197 — Staying Productive During A Global Pandemic

Listen and Subscribe

Listen to Late Night Internet Marketing on Apple Podcasts or Spotify. Have a question for Mark? Call the digital recorder at 214-444-8655 or drop a comment below.