PPB May 2020

spring 2020merchandise box was themed “The Future is Green,” he obtained home addresses for all the key decision-makers at a few clients andmailed products to them. “They all have called or emailedme with gratitude for the fun gifts and ‘surprise’ in themail,” says Jolin, adding that in the conversation he told them that when they were ready to spend some funds again on physical marketing, those products and home delivery would both be highly relevant. Jolin has also had a backdrop designed to use during video chats. He used it recently to host an upcoming Zoom happy hour for about 30 people at a top client. The virtual event included door prizes—spec samples with their corporate logo including power banks, tumblers and wireless chargers, as well as some Jolin Promo- branded items such as an insulated bottle, deck of cards and a thick, plush blanket. “I went from being slammed with work for events and trade shows to having everything postponed or cancelled,” says Manny Chazan, owner of Anthem, Arizona, distributor Work Hard Play Hard Marketing. He says he went from not being able to keep up to now having time to catch up on tasks that had been piling up. Still, he’s staying in touch with his networking groups through the Chamber of Commerce and Rotary using Zoom and Go To Meeting software. He’s also a member of a barter network called Vendvana, a membership- based community that helps businesses trade for things they need like marketing, advertising, pest control, physical therapy, landscaping and cookies. Chazan used his credits to send cookies to close friends and great customers and he joined with fellow Arizona-based distributor JimGordon at NorthStar Identity, LLC to order and mail puzzle books to customers who have extra time on their hands. As bleak as the situation appears right now, a number of world-renowned business experts and successful entrepreneurs are stepping forward to offer hope, guidance and expertise, particularly to business owners. In a Fox News Rundown podcast broadcast on March 26, billionaire entrepreneur Mark Cuban, owner of the Dallas Mavericks, said he understands the fear business owners are experiencing. “I’ve been in that circumstance before ... but there are things that you can do to really try to turn a huge negative into a positive,” he said. His three pieces of advice for business owners were to communicate with stakeholders— employees, suppliers and customers because they are concerned as well; take this time to look for ways to improve your business, rethink processes and rework literature; and to be informed about federal economic relief efforts (see sidebar on p. 49). He urged listeners to contact their banks to see how they can participate in these programs. Solomon Ari, a private equity investor, and energy and tech CEO, advises small business owners to take these additional steps: Communicate with your creditors and debtors. Explain your company’s situation, discuss options and re-negotiate terms if you can. Inquire about extensions on payment terms, request waivers of late fees and penalties. The good news is that you are not alone. Tens of millions of people are currently in the same boat, and your creditors know that. Inmany ways, this puts you in the driver’s seat to renegotiate payment terms and obtain some forgiveness on penalties that would normally be imposed. At the same time, communicate with your company’s debtors and diligently collect monies owed to you. Be prepared to negotiate with customers and accounts who owe youmoney. Reach out to the current customers you do business with to gauge their situation. Offer discounts and other payment incentives to get whatever liquid money you can upfront. For example, if a customer owes an outstanding balance of $1,000, make an offer to take $700 now to settle the account. This will give youmuch needed cash in hand. Identify customers’ pain points and solve them. Strategize ways to solve your customers’ pain points in a way that could potentially make you indispensable during a time when most products and services will be cut from the equation. Whether that is free delivery, discount packages, future incentives, extra services or penalty-free rescheduling, the old playbook no longer applies. Become flexible in your approach. If you are able, extend more favorable payment terms to gain more market share within your industry. Form strategic alliances. Companies should also look to industries that are thriving and communicate their desire to align and/or partner with other companies to leverage profitability, innovation and market share. Seek out companies that offer complimentary products or services and reach out to see how you can help one another. People are more emotionally receptive in these times, because no matter what industry you are currently in, everyone is feeling vulnerable right now. Entering into a strategic partnership with another company could mean selling a part of your company or even acquiring part of another company. A partner may have the ability to loan you capital in exchange for equity in your company. It could mean extending a sweetheart deal on something that you usually don’t offer such favorable terms on. These ideas should be discussed with a mutual respect and understanding of your respective industry, needs and goals; and the current marketplace in which you are operating. He also advises companies to consider these types of partnerships: Joint Venture – If you decide to merge with another business in your industry to combine assets and resources, you are going to need to consolidate and cut costs. For example, Company Amay have a stronger sales team, but Company B has a better administrative team. You would consolidate those resources, keeping Company A’s salesforce and Company B’s administrative team. Equity Investment – A private equity investor comes in and either loans you capital or invests capital into your company. This means that you are loaned money in exchange for equity in your company. A private equity investor may FEATURE | New Reality 48 | MAY 2020 |