COVID-19 Changes Business Behaviour

We are in Normal.  There is no 'new normal' and we are certainly not going 'back to normal'.  COVID-19 has changed business behaviour.

That's the hard truth. The business owners I've spoken to over the past year have worked hard to adjust.  The most successful ones adjusted quickly...in some cases, pivoting completely away from their core business system in order to survive.  They quickly reset their normal.  

What do business owners need to focus on in this pandemic? 

1. Cashflow:  Know your revenue in and expenses out.  Pay a very close eye on your forecast sales, look for risks;  Know what your fixed and variable expenses are with a focus on what you can cut and what you must have.  
2. Response:  Run multiple scenarios on revenue and expenses.  Do the 'worst-case' scenario exercise. Act quickly.
3. Reserve:  Set up and keep a reserve cash fund to use to fund your business for a period of time...the longer the better.
4. Adapt:  To your business situation;  To your employees;  To your customers.

These are things every business owner should do pandemic or not.  But driven by the rapid changes in buyer behaviour, it is even more urgent!

This Infographic cites US data but it applies to Canadian consumers as well.  We are all anxious about our inability to forecast and predict confidently.  We are in survival mode. We all feel caged.  Yes, COVID-19 has changed our behaviour...for good!

Until next time...

Old Volvos Never Die. They Pass On

'Old Volvos never die.  They Pass On'

That headline from 1980 proves the adage that some things are timeless.

Back then the world was recovering from a second oil crisis and even though Volvos were powered by 4 cylinder engines, the fuel economy numbers as mandated by the EPA were going to be bad.  Volvo decided to go another direction and talk about their durability.  Specifically, how long their cars lasted. 

Clever.  And on point for the brand.

This campaign didn't appeal to everyone.  Again, that's the point.  They knew who their customers were and spoke directly to them.

I confess that I'm Volvo enthusiast.  Between my wife and I, we've owned 5 Volvos.  Currently we run a 14 year old V50 and a 10 year old XC60.  We maintain them well but the darn things run well and feel as tightly screwed together as when they were new.  I hope I haven't jinxed them!

When the brand delivers as promised, that's the mark of great advertising!

Until next time...

Chris

What is Canada's Premium Beer?

"Hey Google...What is Canada's premium Beer?"

That question posed in backlit billboard splendor caught my attention while I was out running early one morning last week. Most of the time I am barely aware of anything other than my breathing and footsteps.  After seeing this message, all I thought about for the rest of my run was how smart Steam Whistle was in coming up with that campaign.

Advertising works when the message resonates with its target audience. This is great advertising! The people who put this campaign together deserve kudos for developing and executing this campaign. I'm sure they have data to rationalize their work but emotionally it just feels right.  And that's the magic that really caught my attention:  An advertising campaign that speaks directly to the customer emotionally.  

Good going Steam Whistle...and all your marketing and advertising partners.

Until next time...

Chris

Coping with COVID

When my Grandma was asked the question, 'How are you doing?', she always answered, 'Coping'.  This was well before 2020!  Now when I ask my business owner friends how they are doing, that's the answer I get.

2020 was a heck of a year.  Because we live next door to our largest trading partner, we've been caught up in their political and economic drama.  Try as we might, we have to pay attention to what's going on because decisions down there affect us up here.  

COVID gave us a reminder that despite what we plan, sometimes we will get punched in the stomach.  That has been the reality for many small and mid-size businesses who have had to close or reduce service due to lockdown rules.  We can't predict future government policies but it would be a safe bet that we'll be living with rapidly changing and seemingly arbitrary policy changes well into 2022.

We can whine or we can cope...

Here are the things I share with the budding entrepreneurs and small business owners in my Business Class at George Brown College:

1. Be prepared.  Now more than ever it is important to plan for the absolute worst!  Months without revenue, additional months with reduced revenue, increased COVID compliance expenses.  I suggest they run multiple cashflow scenarios to show these worst-case outcomes in their gory detail.  
2. Stay agile.  Make your plans, crunch your scenarios.  Then be ready to change on a dime.  I use the Business Plan Canvas Model in this course.  It's a simple one page document to look at new opportunities quickly.
3. Keep connected.  Talk to your friends, mentors, advisors, partners.  Share both your fears and your ideas for coping.  
4. Look for opportunities to solve problems.  This is the heart of every business.  The key is to evaluate the idea quickly to see if you can make money from it.  I use the tried-and-true SWOT Analysis:  Look at the strengths and opportunities;  Analyze the weaknesses and threats.  

Coping with COVID is the world we live in now. This IS normal! Start coping.

Until next time...

Chris