Business During COVID-19: In perspective

May 26, 2020

Perspective is everything.

“The circumstances of our lives may matter less than how we see them…

the power of reframing things can’t be overstated.”

 – Rory Sutherland, Ogilvy UK

The power is in the ability to see things in a different way, to bring meaning and allow new possibilities to emerge.

When the COVID-19 lockdown first began, we shared our campsite analogy, which helped to create a perspective of what was happening, gave meaning to our feelings and allowed us to consider a new way forward.  Since then, our team has donated many hours talking to over 50 small businesses and social enterprises across Australia and the Pacific to support them through this time. We believe in their significant contribution to life and the economy and want to see them succeed now more than ever.  

Here are a few perspectives that small business owners have found particularly helpful during these conversations. We hope that they help you too.

 

1. Staying afloat is a remarkable achievement

Decisions made by government departments and society as a whole have frozen certain industries, transformed others and tripled the sales of a rare few. It’s one thing to operate a business well, but if your customers are suddenly outlawed from shopping with you or have greatly reduced budgets, then you suddenly have a crisis as well.

 If you can find a way to remain trading, you’re doing a tremendous job.

There is no expectation that you need to walk away from 2020 with a cute story about “Corona was the best thing that could have happened to my business”.  You’re in this business because it matters to you, all we hope is that you are able to stick around.

 

 2. Grief vs. Blame

There is a lot to grieve for right now. Friends who have lost their parents, plans that have been cancelled, not being able to see others so as to avoid risking their health.

This is different to blame.  We’ve been talking to people whose businesses have closed or will have to close and are unlikely to re-open. They’re experiencing failure, but they themselves are not a failure.

For businesses who have seen a 30% + drop in sales, there is nothing you could have done to prevent this. Raising prices, cutting costs etc are good ideas, but they wouldn’t have made big difference.

If that’s the case, perhaps it’s worth starting the process of forgiving yourself – you’ve taken a hit that you didn’t deserve, and the loss you’ve experienced is not a representation of your worth or your talents as an entrepreneur as a person.

   

3.  Take stock of the assets you’ve accumulated

 For business owners who have experienced the 30% + decline, it’s worth spending some time in reviewing the assets you’ve accumulated. Broadly speaking, we can break these into tangible (inventory, machinery, equipment) and intangible (reputation, brand, intellectual property).

The important one here is to recognize your own value as an asset – so much of what made your business valuable is you. Eg: if all your equipment was washed away in a flood but you were safe, it’s possible to rebuild a new and improved business within a year. However, if your equipment remained but you stepped away, could a graduate take over your role and run an improved business?

 Taking stock is important, because if you are the asset then you have options for what you build next.

 

4. Preserving your staff can outweigh the need to break even 

 In discussion with one founder who runs a café, he told us that he’s reopened his café knowing that he’ll make a small loss each day, in order to retain his team.

They usually do a roaring trade, and part of their success comes from having genuinely great staff in both front and back of house. Shutting the doors might be better for their cash position, but it would mean saying goodbye to some of their most valuable assets, and in the end the choice became obvious.

 

5. Old productivity metrics no longer matter

We’ve spent decades using the same measurements for output; time spent in the office, time spent in front of your boss/your team, narrowly beating last year’s performance, meetings per day, number of social media posts, etc.

Then all of a sudden we’re all working from home, isolated in a physical and mental sense.

There is no expectation that our productivity will match or exceed what we used to do.

There are pros and cons to remote work, but the sudden shift was bound to take a toll on our productivity. We’re likely to be doing less, or if not, doing the same tasks but with less enthusiasm and joy.

What’s interesting is that since everyone else is going through the same experience, nobody is judging your drop in efficiency. You have time to breathe, time to regroup, time to reset your goals and expectations.

 

6. Social entrepreneurs can’t pour from an empty cup

There are a lot of social entrepreneurs who are leaders in their community, and currently swept off their feet. The exhaustion comes from a good place – they’ve seen that if they don’t intervene in a situation, then nobody else will.

The challenge here is that “you cannot pour from an empty cup”, or as they say on planes “secure your own oxygen mask before assisting others”.

Unfortunately, there is no formula for the exact moment when you need to step back or say “no”, every circumstance is different.  But perhaps the principle of treating yourself the way you’d treat your friends can help – if you wouldn’t tell them to go hungry, why say it to yourself?

 

 

Spread the love

Inner Development key to achieve sustainable business growth: Our InsideOut Model

By Anna Moegerlein, Deputy CEO   In the realm of economic development, a critical realization has emerged—the need for a holistic approach that integrates Inner Development with Enterprise Development. We’ve spent years testing and refining our approach to...

Building Resilient Food Systems: Future Healthy Food Hubs

In 2022 we began a project in partnership with VicHealth and STREAT to provide business support to seven regional food hubs across Victoria. Running until 2024, the program aims to ensure the long-term financial viability and sustainability of the food hubs, thereby...

Collaborative Strategy Development for Sustainable NFPs: 5 Minutes with Brigid Canny, YLab

Learn how YLab collaborated with TDi to develop its new strategic plan, gaining clarity and confidence in its business model. Brigid Canny, Executive Director of YLab, highlights TDi’s flexible approach, coaching, and relationship-building in this 5-minute interview, providing insight into how TDi helps NFPs achieve their mission.

International Development: 3 Solutions for a New Approach to Capacity Building

TDi associate Kate Wilson examines the flaws in traditional international development strategies, and offers a new approach to capacity building with three powerful solutions.

International Women’s Day 2023: Driving Economic Empowerment for PNG Women through Digital Accessibility and Innovation

Learn how a comprehensive Inner Development coaching program with digital accessibility helped overcome unique challenges faced by women entrepreneurs in PNG and drive economic empowerment, especially during the pandemic.

Acknowledging Country: A new way to connect mindfully with an important practice

We recently engaged YARN Australia for a series of team workshops on storytelling, focussed on creating relationships and intentional connections between First Nations Australians and settlers. We invite you into our world as we share a practice from these workshops, and gratefully acknowledge the land we call home.

Kylie-Lee Bradford: Forging New Paths for First Nations Business

We recently welcomed Kylie to the TDi team. Kylie brings a wealth of experience in entrepreneurship as well as rich heritage and story from her Kakadu roots. Kylie is passionate about opening up opportunities for First Nations business to support and give back to...

Don’t Underestimate the Impact of Finance

by Isaac Jeffries, Senior Consultant     I recently had coffee with a university student, who is passionate about social impact but unsure about how to get a job in the industry. She’s studying maths and economics, and surprised me with this pearler of a...

Why we’ve switched to Bank Australia

  by Anthea Smits, CEO     There's been excitement around TDi this month – we are now officially a customer with Bank Australia! Why the change? When I first started to think about impact investing many years ago, a dear friend and mentor challenged me to...

9 Mindsets of my Favourite Difference Makers

TDi Senior Consultant Isaac Jeffries shares the philosophies and habits that are the hallmarks of his favourite difference-makers.

This is a concrete list of practices and mindsets for working in community, and maintaining connection to people without burning out or burning others.