ZENYX: Hey SMHB, Growth, With an Added Gift From the SBA

Hi SMHB,

I love the month of July... sitting on the beach and reflecting on the first half of the year and planning for the second half. One thing I am certain of for the balance of 2020 is this: there is a lot of risk & uncertainty.

Here's our view. We expect:

Economy will retract by 6-8% in 2020
Unemployment will stay above 10% and structural unemployment will exist for several years
Commercial real estate will not recover for multiple years
Government assistance is questionable in likelihood, amount, type, and timing
That the fact it is an election year yields more volatility

As we look at it, the first four months of COVID-19 were about survival -- make sure your business makes it through. The PPP covered businesses; aided in survival. However, as we go forward in 2020, we need to change from a mindset of "survival" to a mindset of "thriving." This is a big leap, I get it; but it is one we need to make in order to get on solid footing. One of the biggest behavioral changes we as business owners need to make is to focus on small business infrastructure. We need to focus our time and capital on foundational business infrastructure that is strengthening the business in accordance with the current corporate plan & goals.

In our eyes, there are three main buckets that corporate plans fall into: adapt, pivot, or transition. Be sure you know which bucket you are in so that you can deploy resources every day to achieve.

Here's how we look -- operationally -- at adapting, pivoting, and transitioning:

Adapt

Reopening with Social Distancing & PPE -- what do I need & how much does it cost?
New Technology -- from hardware to cloud, allowing your business to adapt to this new paradigm
Business Systems or Processes -- from accounting to HR to improve clarity into decision making
Financial Planning & Management -- leveraging government & public funding programs, cash flow management and analysis, budget scenario planning

Pivot

Expansion of product/service offerings -- Adding to what you do
Change in delivery of product/service -- Adjusting how you deliver
Shift in target market -- Identify a new "customer" that you can serve
Expand geographically -- Do we need to enter new markets?
New pricing strategies -- Rethinking how customers perceive your value

Transition

- Exit Strategy Planning -- The who, how, and why
- Growth through Acquisitions -- Bolt-on of new services/products or propelling your current growth through the acquisition of competitors
- Navigating Restructuring -- How to leverage bankruptcy to come out the other side

Check out the resources below to help kick off the process of being proactive in adapting, pivoting, and transitioning!

New Resources (Lots of new content)