Yaneek Page | Recovering pandemic-lockdown losses

QUESTION: Can you please write and tell how we as the small business entrepreneur can make up the loss we suffer from curfews and no-movement. Times are roughest now because my business normally would open at 10 a.m. and close at 10 p.m. Customers would usually come out like any time after 12 p.m. and our peak is like after 5 p.m. So you know that with what’s going on now we have to close at 6 p.m. and what we collect can’t even reach the basic bills, like the rent, water and light. Last month me reach a point where me could not find money to pay my staff. I employ five people, three part-time, especially for weekends when it’s our busy time. I had to let go one person.

– E.S., Kingston

BUSINESSWISE: There’s no question about it: the curfews and lockdowns which are central to the Government of Jamaica’s strategy to stem the spread of COVID-19 are also crippling for many micro, small, medium and even large businesses. The situation is exacerbated for those micro and small businesses that have not undergone digital transformation, have little retained earnings, limited access to capital, and typically have highly concentrated rather than diverse income streams.

For companies such as yours, work from home and operation during times of restricted movement are near impossible unless and until you pivot drastically. It is unfortunate that you didn’t provide more detail on the type of business you operate, who you serve and your unique selling propositions.

Notwithstanding the above, the short answer to your question is that you may never be able get back what you have lost.

The sad reality of this pandemic is that the world is reeling from the losses spawned by this devastating and enduring novel coronavirus and its many variants. Most are unrecoverable.

Bemoaning these losses is understandable, but you can’t cripple yourself by obsessing over what is gone or they which you can’t change. As the business leader, you must quickly come to terms with that reality and start immediate planning for a brighter future. It is easier said than done, I know, but this is ultimately the true mettle of business leadership in turbulent times.

One course of action at this time could be to preserve your cash cow, reduce your expenses, improve operational efficiency, deepen customer engagement, explore digital transformation, and diversify income streams that are aligned with that transformation strategy and current market demands. Being open with and engaging your team members is also a critical action that may bear immediate results, as you may be surprised by their ideas, suggestions and support in problem-shooting these challenges.

If you haven’t already done so, please take the time to review in detail the 52 exemption categories of persons for no-movement days. It could be that you currently have the privilege some businesses now enjoy of operating during lockdown.

I recently shared this with several small business owners who were shocked to learn that they could operate normal business hours during lockdowns. This list can be found at: https://jcf.gov.jm/public-advisory-re-exempted-persons/.

According their published public advisory on the issue, you may call them to seek clarification on whether you qualify for exemption at the JCF COVID Response Centre, at 876-702-5102 or 876-702-5108-9.

As regards your short-term liabilities and some fixed costs, it may be worthwhile to start engaging creditors and your landlord, for example, to negotiate payment extensions, reductions and more affordable payment terms in the circumstances. You may find them more receptive, given the reality of the crisis now facing the country.

Another source of savings and enhanced efficiency may be found in process re-engineering and digitisation, particularly if you find ways to increase efficiency with the adaptation of technology solutions. I detailed how to undertake this process in my Sunday Gleaner column of June 21, 2020 titled ‘Time to Reimagine and Re-engineer Your Business’, which I recommend you read as a helpful guide.

A key point to note here is that digitisation and automaton are not synonymous with digital transformation. Digital transformation is a comprehensive enterprise rebirth requiring a fundamental change to your business model, mission, culture and way of doing business, with the ultimate goal of either shifting or diversifying to digital products and income streams.

You’ll recall I recommended preserving your cash cow, deepening customer engagement, and closely aligning your strategic actions with current market demands. Remember it is usually 70 per cent easier to sell more to an existing customer than a new one, and this, therefore, is a low-hanging fruit you can’t afford to leave languishing on the tree.

This is also a time when your customers are likely in the throes of chaos and dislocation. You need stay in touch. Ask what else and how else you can provide for them, and make it easier for them to access your goods or services through online or mobile ordering and payment, and doorstep delivery. Remember they, too, have reduced hours, could be facing job losses, reduced income or restriction in movement that will force tough choices.

You would be surprised how simply reminding them you exist, through direct contact, will secure sales and shore up your cash cow. Finally, don’t be so hard on yourself as you keep doing the best you can. Your business has so far survived 100 per cent of its worst days in a once-in-a-lifetime pandemic.

Good luck and one love!

- Yaneek Page is the programme lead for Market Entry USA, a certified trainer in entrepreneurship, and creator and executive producer of The Innovators and Let’s Make Peace TV series. Email yaneek.page@gmail.com