5 Things Business Leaders Need to be Doing Right Now

I started in recruitment in the mid 2000’s during the boom time for the industry. Then the GFC hit - It was hard… really hard. It wore you down, but you also knew activity would pay off in the long run. You knew that the resilient would survive.

However, COVID-19 is a little different, there is a lot that we cannot control right now and although activity will pay dividends, it just might take a while.

As business leaders, now is the time to focus only on what you can control and do that well…really bloody well.  At Stitch Recruitment we have spent the last two weeks consulting with our clients daily and compiled the ultimate list of advice from the perspective of owners and leaders.

1. Cash is King!

In tough times it is one thing to have a great P&L, but a solid balance sheet is what is really important right now. With an overnight reduction in revenue, staff to pay and over heads to find - now is when you need to do some hardcore number crunching, you need to plan for the very worst-case scenario.

Cash-flow forecast for the next 3, 6 and 9-12 months. Workout exactly how long you can survive under each model and what costs need to be cut. Negotiate with suppliers and landlords, ask for deferred or extended payment terms. Talk to staff about reducing their hours and what that means for the business - be explicit “if we all reduce to 3 days a week, I can guarantee you will remain employed for the next 5 months”.

Ensure you know exactly when you will be receiving revenue. Call your clients and ask for commitments, remember everyone is the same position and they may also ask for deferred payment terms or payment plans.

It will take some time but trust me you will not regret it; this is a priority!

2. Call in the experts

Your Accountant is your best friend right now. They are getting live updates daily on the government stimulus and what is available to your business. Share with them your cash-flow plans and make sure you are factoring in any potential aid the government can offer.

Sign up for updates with the ATO. Remember, some initiatives will take time to hit your bottom line so ensure you factor this into your plans. Stitch Recruitment works with a number of excellent Accountants, get in touch if you need a referral for your business.

3. Step up and be the best leader you can.

Be present. Make sure your team knows exactly where they stand. Talk them through the situation you find yourself in, give them the best and worst case scenarios. Include them on your plan, give everyone a responsibility and a purpose.  Above all remain calm even if you feel like you are treading water.

Get creative, your revenue might have drastically reduced, so use this time to support your clients. Be front and centre, offer your time and your resources - never underestimate how much this means to your clients. They will remember and return the favour when the time comes.

4. Keep your head in the game.

These are times of unprecedented change. The stress people now find themselves under is for many something they have never experienced before. You need to take time to breath and ensure your mental health is paramount.

Meditate, don’t miss that run or home work-out that you have been putting off. Drink less alcohol, drink more water and make sure you are getting adequate sleep. It sounds simple but your mental health is key to getting through this time.

5. Laugh!

Enjoy the small wins and take time with your family, don’t lose your joy. Remember this will pass.

Contact the Stitch Team for additional support and advice for yourself and your Team.