PPB May 2020

extend you a line of credit to help you survive this climate. You don’t pay back an equity investment in traditional terms, but you will find your ownership stake shrinking, perhaps considerably. The good news is that the equity investment would likely outweigh the loss. One thing to consider during economic downturns is that private equity investors will look for terms that favor their investment. This is because the higher the risk for the investor, the more that investor is exposed financially, the more the terms will be slanted to cover that risk. Acquisition – Getting acquired by a larger business that has the financial wherewithal to support your business and keep operations afloat during this period of time places a strong bandage on the current uncertain marketplace. This means you will not be in such dire need of immediate profits to stay alive or to plan the future trajectory of your business. You can also maintain your marketing and advertising efforts and continue to grow your market share without immediate profits, but with the future projection of profits. Streamline efforts with technology and outsourcing. How long can your workforce work remotely? Can you outsource some departments? Can you streamline your administrative team using technology or keep your workforce intact but teach them how to be more efficient with the use of technology? These are some of the questions to ask yourself during this time. You may find out through an efficiency audit of your business that 20 percent of your workforce is doing 80 percent of the work. With that information, you can pivot your efforts and infrastructure accordingly. This is an opportunity to become more efficient and more profitable in the long run. Align with industries that are doing well. There are certain industries that thrive in tough times, perhaps due to some of the foils of human nature. Those most likely to thrive during this pandemic are real estate (investors and would-be investors love a buyer’s market), liquor and tobacco sales, firearms sales, streaming entertainment, sectors of law that deal in financial hardship (think bankruptcies and foreclosures), virtual meeting software, health care and banking. Conversely, industries like travel, hospitality, brick-and-mortar retail, brick- and-mortar consumer services, locally- driven services that require face-to-face social interaction and manufacturing will suffer the most during this time. Apart from necessities like food, medication and certain sundries, consumers are now buying fewer goods and services as their financial insecurity and anxiety grows along with massive loss of income. Keep your eye on fall 2020. Companies can use the spring and summer months to position themselves for an autumn boom if they take the right strategic steps. The financial effects of coronavirus will be felt long after the pandemic is under control. We will feel ripples and aftershocks well into 2021 and perhaps throughout this decade. This means that business as usual is a losing proposition. Our economy will recover, albeit with a different spin than before. Virtual networking and virtual meetings will become more and more commonplace, and the traditional sales meeting or boardroommeeting will happen less. We will also come back together and socialize in slightly different yet distinctive ways, with a return to more community-based activities. Local parks, places of worship, board games and general fellowship with one another will be newly discovered and offer a newfound charm. Tina Berres Filipski is editor of PPB. Jo-an Lantz’s Seven Tips For Entrepreneurs In a recent online presentation to PPAI’s executive team and staff directors, Geiger President and CEO Jo-an Lantz, MAS, discussed seven valuable skills needed by entrepreneurs and business leaders who are navigating these tumultuous economic times. She first presented the tips at Geiger’s annual Fireside Chat, a tradition dating back to 1956, in which the company shares its financial report, accomplishments, goals and expectations. Typically an upbeat event, this year’s web-based meeting that drew about 900 employees and sales partners, took on a decidedly different tone amid the COVID-19 pandemic. Despite the challenging days ahead, Lantz coached her team on these seven skills that would help them get through it. 1 Don’t dwell. There’s no point in circling the drain on things that are out of your control. 2 Learn to prioritize. Prioritize your time, energy, meetings, calendar and creativity. 3 Avoid analysis by paralysis. Done is better than perfect. This has never been more imperative than right now. 4 Stay open. Don’t get attached to outcomes. Be flexible and learn to shift what you were going to do vs. what needs to get done. 5 Focus like a laser. Be like a dog with a bone. Keep your eye on the prize. 6 Believe. You have to be your No. 1 cheerleader and hypewoman. It’s a time when some want to become invisible, but you have to keep reaching out and remain visible. 7 Pivot. Yes, it’s the word of 2020. Be nimble and quick on your feet. Turn on a dime. Sink or swim. “We can’t just give our best effort, we have to be successful,” Lantz said. “We must succeed to make it happen.” PPAI has available dozens of COVID-19 resources including links to government assistance programs, articles, webinars, podcasts and real-time status updates from industry suppliers at ppai.org/coronavirus-information. New Reality | FEATURE | MAY 2020 | 49