..well it turns out to have been a popular topic and one worth revisiting.

For their February issue, the St. Louis Small Business Monthly asked me to share my thoughts on the biggest challenges business owners face and to offer my best advice for owners.

TL;DR

I think the biggest challenge business owners face is clarity - getting clear about what they’re building, what the business needs to do for them and their family/community, and communicating that vision to their team.

So many other challenges in finance, sales, marketing, operations, personnel, can be traced back to the lack of a clear vision that aligns people toward a common purpose and defined business outcomes.

My best advice: take time to plan and work on your business. Invest in becoming a better leader so the you can give your people the vision, inspiration, support, and resources they need to do great things.

So many business challenges/roadblocks are predicable. That’s why I wanted to give owners a resource that not only lays out what they are but offers practical strategies to overcome what is in your way. You can download the full article here to help you start moving obstacles out of your way to clear the path to sustainable growth.

The other day my client said they didn't see the need to meet about sales strategy.

I chuckled. But they weren’t kidding.

From their perspective the two lead sales people (the owners) were aligned in their approach and since the lead generation/qualification process was so fluid and unpredictable, they saw no point in reading the other management team members into their thinking.

There are lots of reasons I think this is a bad idea.

Which is why I thought they were joking.

To start with, these plans and ideas about which the owners are aligned only exist in one place.

Their heads.

And although they may seem to share a brain, they don't.

It's not like their business development activities don't impact other members of the leadership team and staff. Other people are brought into the process all the time. It's on a case-by-case basis, without any understanding of the unspoken, unwritten plan for how this one opportunity might fit together with current and future projects, sales goals, or desired customer mix.

Not to mention, because the opportunities are coming from far and wide, it's nearly impossible to play out all the scenarios in your head and know which ones are truly aligned with current revenue and profitability goals. Depending on which ones come to fruition, it could mean very different growth trajectories.

Fundamentally, it goes back to the owners defining what long-term revenue and profitability goals they want to achieve AND how they will achieve them. The decision about HOW to achieve your goals in STRATEGY. Or as stated in Good Strategy, Bad Strategy, "strategy is a cohesive response [plausible and feasible immediate actions] to an important challenge."

A clear picture of success - which itself can and usually does change in some ways over time - includes ideas about things like your product and service mix, customer types, geography served, and staffing. These ideas hinge on defining what an ideal client looks like, the criteria for new product and service development, who/what opportunities are a "good fit" , what different growth scenarios will require in terms of adding staff and other resources, and which of those paths you're willing to take at this time.

You can't possibly keep all of that in your head!

Nor can you expect the other people on your team to be able to contribute their best work to achieving your business goals without clarity about where you're headed, the analysis you've done, the decisions you've made, and the variables at play.

Whether it's your overall vision for your company, specific ideas about how to increase sales, or what new products to develop, in most cases the hard work is usually already done. You've already thought it all through.

Now you have to put it down on paper. Then share it with and be open to feedback from your team.

One reason you might be hesitating to put your thoughts on paper is because you feel like it commits you to one path and one path only.

The act of writing things down doesn't tie your hands. It frees your mind.

It captures your best thinking, decisions, and strategic next steps based on what you know today. This includes the other options or scenarios that exist and either why you haven't chosen them or what it will require for you to choose them (pivot) as you move forward. This then gives you a filter through which to make decisions as new information becomes available. You always get to choose how to build the business that fulfills your dreams and desires.

Perhaps you’re resistant to writing things down because you believe your ideas are hard to explain.

Don't worry about making sense in your first draft. Get it on paper then edit and rearrange. Fill in the blanks. See where more thinking is needed or a key decision needs to be made. Make sure your "if this, then that" train of thought is on track.

If it's too vague to explain, more thought is needed. Probably with a trusted team member or advisor.

If it's just too complicated to write down, it's probably too complicated to actually do.

The other reason I often hear is that people don't want to slow down to write a plan. They don't have time. There are too many things to do.

It's hard to know if what you and your team are doing is impactful if you don't have a shared understanding of what you're trying to accomplish. Many busy people have exhausted themselves treading water, going down rabbit holes, and chasing shiny objects.

Planning IS doing.

Ready to give this a try?

Get started by:

Did you know, that most small business owners ask for help with:

And the most commonly offered business services by coaches, consultants, and entrepreneur support organizations are:

The two are seemingly not quite aligned. Why?

Getting and giving business owners what they want and need is hard. Because it’s complicated. What we need and what we want are often different things in life and in business. In my experience, the most successful business owners are open to new ideas, willing to test their assumptions, and willing to listen to experienced advisors.

Formation: Why It’s More Than Checking Boxes

When starting up, the business owner has an idea, something they love to do, a valuable product or service that others want, a vision for the company they want to build.

Yet, incorporating, getting a name, EIN, tax registration, business license, professional license, and so on are necessary but uninteresting. These are often time-consuming parts of the process. People can get distracted and discouraged before doing all that’s required. Or they make choices that are not well researched on the front end when caught up in the excitement of getting started. Worse yet is that, even with assistance, there are still way too many agencies, offices, and decision-making points to make the process easy or convenient.

Often, the mechanics of formation, registration, licensure, and certification, while tedious and unnecessarily complicated by bureaucracy, are not what will ultimately help the small business owner succeed. Ideally, we would restructure the legal, regulatory, and compliance processes to be streamlined and efficient, available from centralized locations that make additional technical assistance unnecessary.

If business owners don’t have to worry about those foundational pieces, their time and energy can be refocused on planning and processes—the real keys to success.

This leads us to the broader concept of what it means to assist someone with starting a business. Formation and compliance are one thing. Business model validation and planning are another. And those of us in the business of providing coaching and advisory services know that we can help clients improve their likelihood for success if we help business owners avoid common pitfalls when starting a new venture.

It’s All About Your Plan—Yes, You Need A Plan

As a strategic advisor, I consider business planning, marketing strategy, and financial management to be essential components of starting up, formation, and capital preparedness. My job is to help founders and owners do small, fast, inexpensive experiments to test their business ideas. Essentially, we work together to help them de-risk their venture as much as possible and position them to make good choices as they grow and build.

In practical terms, the goal is to avoid things like launching a new product that no one wants to buy, getting stuck with a lease they can’t afford, or offering services that cost more to provide than they can charge. That requires planning and financial projections. That initially slows things down so they can move faster later.

This can be frustrating for business owners who sought help so they could move faster. They can become discouraged when the process of starting and running their own business is harder and more complicated than they expected. Some look for shortcuts. Others expect to be the exception to the rule. They will point to lots of people who (as far as they can tell) didn’t have a plan and are successful. They will ask what is absolutely necessary vs. nice to have/do.

Honestly, some people can get by with less planning and preparation. That’s because the system is designed to unfairly favor those who start with more experience and resources (education, relationships, networks, money). They will recover faster from mistakes, setbacks will be less devastating, and failures will seed new beginnings.

For the rest of us—especially women and BIPOC owners—service providers, coaches, and consultants are trying to close the experience, capital, wealth, relationship, and knowledge gaps so our clients can have a fighting chance beyond formation. We know clients need more than checklists and money. Preparedness is the key differentiator and sometimes the best and only tool available.

Money Matters: How You Manage It As Well As How Much You Have

Money. All business owners want more money. Fast, easy, free, money.

The thing is, not everyone needs more capital. You may need tighter controls on cash flow management, a line of credit, and/or a better marketing and sales strategy.

For those who do need capital, that typically means a loan. There are very few grants for small businesses and in order for a business advisor, coach, or assistance provider to help you access market-rate capital, you need to be prepared. Most money isn’t easy, fast, or free to obtain.

Some of us are actively working to create new capital products like low and no-interest loans, grants, friends and family funds, mutual aid programs, and microloans. Others try to help owners explore earned revenue options to finance their growth. Hence, marketing strategies are one of the main points of discussion. Programs designed to increase the capacity of small businesses to price, market, and sell their products and services are a direct response to the desire of most business owners to access capital and the reality that most won’t qualify to do so. Helping you be better at managing cash flow and marketing and selling your product/service may be the best way an advisor can help you grow.

As for accessing the capital that exists—loans, investments, and a small number of grants—it requires business owners to be prepared to compete for and obtain that funding. Access to capital isn’t an introduction or application. It’s a process.

Accessing capital = relationships and preparedness.

Preparedness = having a plan and understanding your financials, knowing what you need, what capital is available, and the terms and conditions for getting it.

Obtaining capital = demonstrating that you know how to use the money to make more (or at least pay it back), jumping through hoops, and playing the game.

Using capital = investing in people, technology, systems, professional services, etc. that will help you make more money.

The keys to unlocking capital include business planning and understanding your financials, and the ability to communicate that knowledge to others the way they want to hear it. Period.

This isn’t about financial literacy. Bootstrapping business owners know how to manage finances. What they typically lack is knowledge of and access to financial tools and planning that translate their experience into actionable plans and experience communicating their plan in the language of loan officers and investors.

The Value of an Advisor

Knowledgeable advisors know how the game is played and can help you play it. The more you put on paper in advance, the better. Otherwise, the conversation you want to have about money will quickly become one about writing a plan, creating financial projections, and practicing your pitch. Every advisor I know has heard clients say that planning takes too much time, it’s too hard or unnecessary if you just listen to my story and believe in me and my vision, work ethic, passion… that’s not a thing if you want capital.

Some owners know that the system is not designed to make it easy for them to get money so they opt out of the process, choosing instead to grow organically or stay small. I’ve also met owners who are so discouraged by the odds that they don’t have the energy to try, convinced their planning efforts will be for naught. Those who do the hard work to make a plan that allows them to run their business in more sophisticated and sustainable ways always reap the rewards before and after securing capital.

Bottom-line: business owners, advisors, coaches, counselors, and entrepreneur support organizations want the same thing: to build strong, sustainable, profitable companies. In order to show you the money you’ve gotta show us the plan.

No one wants you to succeed more than business coaches and advisors. Entrepreneur support organizations and small business centers exist to help you succeed. Perhaps if we talked more often and frankly about what business owners want and what it really takes to start and grow a business, there would be less confusion about what services are offered and why.

Business owners: ask for what you need and be open to the possibility that the support and assistance might look different than you expect.

Coaches, advisors, and support organizations: explain why and how you have designed specific services to optimize business owner success, think about how to streamline your processes, and when possible, change the system to make it better for everyone.

I’m very fortunate to work with an amazing number of creators—entrepreneurs and small business owners who work every day to manifest the companies and lives of their dreams. Our work together typically begins by delving into their vision and getting a deep and clear understanding of what success looks like for them. Only when you know where you are headed can you find and invent ways to get there. Planning is an important part of growing your business, but there are ways to take your planning to a whole other level. Here’s how I help others supercharge their annual planning.

Start with a Vision

Regardless of the words you use—strategic planning, goal setting, business planning—they all start with a future state in mind, a vision for how the world will look, feel, be different as a result of making specific, intentional choices. Feeling overwhelmed? Not sure where to start? Or what the next step should be? Take time to think about and write down your vision. Then, of all the things you can do, ask yourself which ones will get you closer to your goal, closer to building the business you want. You can use this as a guide:

  1. Vision/Goal – The What: Define and describe your passion, desire, vision for your business.
  2. Strategy – The How (directionally): A specific plan for achieving your vision/goal (often broken down in years, quarters, months, weeks). Pro Tip: Spend some time brainstorming all the possible ways to create your visions (crazy, unrealistic—all of them), then commit to the 3-5 approaches that will do the most to get you where you want to be.
  3. Rationale – The Why: Of the many ways you can achieve your vision/goal (see above) you have selected this strategy because… if you can’t explain why you have chosen the approaches you identified above, it will be hard to execute.
  4. Tactics – The How: Specific actions (tasks) that need to be completed in order to turn the planning into action and results.
  5. Sequencing – The When: Deciding the order to do things in to get the best result.
  6. Measurement – The How Well: We will know we are successful by measuring these leading and lagging indicators (specific to your business) and evaluate whether any changes are needed to our planning, strategy, or tactics.

*Pro Tip: If you have a team (anyone other than you with how you are working to execute on this plan to create your vision), make sure you have shared definitions of these terms. It’s important to speak the same language to avoid confusion. And don’t forget to share your vision and plan with them so they understand how best to help you succeed.

Want to talk through some examples of this thinking in action or what it might look like for your business? Email me to schedule a 30-minute introductory call.

Supercharge Your Planning Process

Pretty standard stuff, right? (Even though doing it is sometimes harder than it looks!) So what will supercharge the planning process?

Believe it or not—numbers. Words + Numbers = supercharged

Even a simple, quick and dirty forecasting exercise, that turns your strategy and tactics into financial end results, takes the whole process to another level.

Why? This isn’t just about aligning your budget to your plan to make sure you have the resources you need to execute. It’s also not just about testing your gut to see if the numbers make sense. It’s about seeing your vision manifest in terms of revenue and profits—dollars and cents.

A budget or forecast makes your vision real. It makes the tedious, incremental tasks that have to get done mean something. It lets you visualize the reward that your hard work (and sacrifices) will make possible. It makes the abstract real.

Financial projections capture your thinking in numbers:

If I do this (my plan: strategy and tactics), I anticipate that the end result will be this (revenue, expenses, and profitability) which will give me more resources with which to create this (my big vision).

One of the coolest things about being an owner is that you get to decide what to do with profits. Reinvest into the company. Support your community. Take care of your family. Give it all away. The choice is yours.

Profits = possibility and potential = motivation and inspiration.

In addition to helping you get and stay motivated and inspired, a simple financial model is critical when things don’t go according to plan. When the situation changes, your ability to evaluate the circumstances and reorient to act depends on 1) whether you’re in the habit of regularly running “what if” scenarios and 2) if you have decision-making tools that help you quickly evaluate options. Your plan (strategy and tactics) plus your numbers (tangible outcomes of strategies and tactics) are part of that toolkit.

Your Vision + Numbers = Supercharged Planning

Clarity of purpose (your vision) helps you focus on the long game. Long and near-term plans broken down by years, quarters, months, weeks, and days help you adjust tactics in real-time. As days and weeks unfold, you may need to make new choices, take new actions to stay on track toward your goal.

Having trouble staying focused or feeling pulled in too many directions? Ask yourself if the incomplete tasks are mission-critical. If so, can someone else do them? If not, take them off the list and ask yourself what next steps you can take right now that will get you closer to your vision.

Hitting your goals faster than you anticipated? You might ask yourself if your vision is big enough. Or what the next best steps are to maintain your momentum.

Feeling pulled to do something new that’s not part of your plan? Not sure if it’s a distraction or a new path forward? Ask yourself if you’re acting from a place of fear or an abundance mindset. Consider the opportunity costs.

And in all cases, run the numbers to see what the impact will be on the top and bottom lines.

Ready to supercharge your business planning?

Purpose First Advisors supports small businesses, growth-stage companies, and organizations by providing strategic business consulting and coaching. Contact us to learn more or to book a consultation with our team.

I am obsessed with building cash flow projections and financial scenario planning. Seriously.

I’ve spent the last several months working with small businesses in industries hit hardest by COVID, including personal services (i.e. salons), daycare providers, and specialty retailers. In addition to providing technical assistance to support them in applying for grants and loans, I’ve been talking with owners about the business of their business.

We’ve explored marketing and sales strategies, ways to retain current clients, techniques for identifying and reaching new target markets, e-commerce implementation, re-engaging former clients, pricing, payment terms/collection, developing new products and services, using new distribution channels, and so on. Some of these things are feasible with the resources on hand. Other changes and pivots require capital—money not all businesses have to invest in new strategies and tactics.

Very quickly, the conversation turns to cash flow—how they are managing the flow of money in and out of the business, including cash and cash equivalents from operating activities, investment activities, and financing activities. The ability to manage cash flow is a critical business skill (not an accounting function). Cash flow statements help owners measure the relative strength, profitability, and long-term future outlook for their company. They also reflect the positive and negative impact of business decisions on the bottom line.

The Value of Cash Flow Projections

In addition to providing insight to the current and future profitability and sustainability of the business, cash flow statements and projections are tools that help us get a sense of how hard the business has been impacted by the COVID-19 recession, how leadership is feeling about Q4 of 2020, and what they think 2021 might look like—because these feelings and beliefs manifest as implicit and explicit business decisions.

More often than not, my clients only have a vague sense of these things. They know revenue is down and that they have cut expenses. They know what their bank balance is. They have a hard time imagining what the future—a few weeks to several months—might hold. They want to make decisions and act but are struggling to figure out the next best step.

Frankly, it can be scary to run the numbers and turn vague impressions into hard realities. And yet, I promise, it really is the best thing you can do to get and maintain control over your business. A lot of things are out of our control. We can’t force people to buy, or reduce many of our fixed costs. We can’t predict another lockdown or whether someone on our team will get sick. So we have to control what we can.

Cash flow projections for 2020 and scenarios for 2021 give us ways to identify the most important things to pay attention to and build plans for getting the outcomes we want.

For example:

I work with a specialty promotional product maker. Much of their business is driven by special events such as walks, runs, bike rides, family reunions, conferences, and other nonprofit and corporate events. They have a strong base of local small business clients and when companies started temporary closures, shifted to work from home, and canceled events, their business slowed down considerably.

They immediately looked at ways to save money (supplies, materials, reducing staff size and hours), pursued loan and grant opportunities, and brainstormed ways to keep sales coming in. Each strategy helped in different ways but until they plotted the actual revenue, expenses, and capital investments in Q1, Q2, and Q3, they really could not assess whether they had saved and earned enough or what it would take to break even by year’s end.

By doing the cash flow analysis and projections, they could very clearly see their current financial position, as well as what the remainder of the year would require in terms of sales and cost-control. It helped them set goals—targets for revenue and expenses—around which to build focused strategies and monitor results in real-time. They can look several months ahead, then develop and implement a plan now that has the best potential to maximize revenue from existing and new customers in the coming months.

This is key: doing projections helps you create a plan, take actions that you can monitor and measure, and reduce variability, and increase the predictability of success. If you need to renew 30% of prior year customers and bring in two new orders totaling $20K in order to make your desired revenue goal for November, the sooner you know that and the more time you have to make that happen the more likely you are to succeed.

While the outcomes can’t be guaranteed, without a plan failure is inevitable. With a plan, you can do everything reasonable and feasible to make your financial assumptions a reality.

Building Cash Flow Scenarios

The next step is to take what you know about how your business is performing in 2020 and run scenarios for 2021 using that information and the data you have from prior years. Like my clients, there are several things that will factor into your scenarios:

The goal is to think about best, worst, and likely scenarios so you can do your best to anticipate what resources you will need and what actions will be required to tip the scales in favor of success.

Why Build Scenarios?

Like me and my clients, you have people counting on you. Your family, the employees, and contractors you hire, the vendors you buy from, the clients you serve. That’s a lot of responsibility. Even for those small businesses that have seen an increased demand for their goods and services during this time, success is not a forgone conclusion. Increased revenue doesn’t automatically and inevitably lead to increased profitability. While we can’t predict the future, we can look at what we know, make educated assumptions, think through possible futures, and use that information to plan, act, evaluate, reorient, and repeat on an ongoing basis.

Here’s the thing: knowing what the future could look like gives us the opportunity to think through what we can do to try and create the future we want. That’s the art of business management and strategy—planning and execution to create desired financial results. It’s time to practice your futurism skills.

Cash Flow Scenario Examples

Worst case: Let’s say you have seen a drop in revenue this year. Perhaps your worst-case scenario is another drop of comparable size in year over year revenue for 2021. Or a delayed recovery with revenue returning to pre-COVID levels in Q3 or Q4 of 2021. Maybe revenue stays steady but your cost of raw materials or shipping costs increase. The idea is to look at What if X happens and think through what impact it may have on the bottom line and what sources of capital (savings, lines of credit, loans, grants, investors) might you have or need to make it through times when net revenue is down.

Best case: This is your most optimistic outlook for 2021. Perhaps expenses remain relatively constant with no new cuts needed and revenue declines stop or revenue starts to slowly rise. Or you may have entered a new market or launched a new product/service at the end of 2020 that helps accelerate revenue growth in 2021. It might be that your current customers have decided to invest in things that will accelerate their own growth and are ready to buy again. This scenario looks at how things might improve—return to pre-COVID levels or even better—and the reasons you believe that can happen. It may also prompt you to think about how you will eventually reinvest your profits to maintain growth and increase profitability moving forward.

Likely case: Somewhere between the best case and the worst case is what is likely to happen. It is neither overly optimistic nor conservative. It blends the most likely revenue, expense, and access to capital scenarios.

You may have several best, worst, and likely scenarios. This is when it pays to work with a professional who can help you build spreadsheets that allow you to change and test different variables with minimal inputs and edits, and where getting down to granular levels of detail can really matter.

In the end, the cash flow scenarios you build will give an important tool for making immediate decisions regarding strategy and tactics, as well as a way to monitor those assumptions and compare them to actuals over time.

Remember, what we are talking about is financial planning, not accounting. You may use some data and reports from your accounting system to inform this work. However, the bulk of this knowledge will come from you and what you know about your business and your industry. Businesses coaches and strategic business advisors can help you tap into and unlock this way of thinking.

Over the past several weeks, I, like you, have received countless statements of “solidarity” from big corporations, nonprofits, and small businesses. I’ve even helped edit a few such statements. 

While those statements are an important part of the process, many of us have also been down this road before. A statement is made, actions are suggested for others, no action is pledged by the institution, and/or what is offered are surface-level activities that reinforce the idea that solutions can be easy, instant, and consistent with the current worldview. Others may not have felt compelled to address institutionalized racism and White supremacy before or have exerted the privilege White people have to disengage from the conversation (a privilege not extended to our colleagues who are Black and Indigenous People of Color (BIPOC). 

Often in my role as an employee, business owner, board member, consultant, and sector leader working to advance racial and gender equity, I’ve been told to stay in my lane. The idea being that my lane is entrepreneurship, and entrepreneurship is about making money and creating wealth—not dismantling racism. Nevermind that businesses that have diverse leadership teams and build diverse, inclusive, and equitable corporate cultures actually outperform their competitors or that untold millions are left on the table every day by investors unwilling to invest in women and BIPOC founders. 

Advancing equity and dismantling systems of oppression is our job as human beings, especially in “our lanes” where we have the greatest potential to influence change. 

I believe we can affect tremendous change in whatever places and roles we find ourselves. So I looked at my lane and, starting back in 2016, began to apply a racial equity lens to my work. 

At the time, it was to look at how my two-person team could codify our commitment to racial equity by documenting our process (creating a racial equity rubric) so that we could be more intentional in our work and leave a roadmap for others in the organization to follow. 

Today, part of that work is helping small business owners—solopreneurs and owners with small teams—understand the role they can play in creating anti-racist business practices.

The Role of Culture

Regardless of the size or age of your company, it has a culture. Cultures don’t simply happen, they are created—intentionally or unintentionally. Every decision we don’t make has as much impact on our company culture as the ones we do. And how we choose to engage in that decision-making or act in alignment with our values, impacts everyone with whom we do business. 

Our contractors, employees, vendors, and customers are looking for real commitments and deserve our authentic allyship. This means going beyond statements and taking action in practical, measurable, ongoing ways. 

Based on my personal practice to become anti-racist, I’ve thought about what I can do as a business owner, and how other solopreneurs and small business owners can build anti-racist companies. 

Taking Action

Developing anti-racist business practices is an ongoing process. You will make mistakes, need to apologize, and to try again. I have and do. In this process, you will need to be vulnerable and authentic. You will always be learning—you will never arrive. I can think of no better way to build your capacity as a leader in business and your community. Welcome to the journey.

If I could label the theme of the past two months, at least for small businesses, it would be this: how to pivot. 

Our first pivot was dramatic and unexpected. The nation shut down and businesses everywhere shut their doors. That was out of our control. 

For some businesses, the choice to pivot from brick and mortar storefronts to online products and services was the only realistic solution. Others moved into adjacent and temporary product lines—clothing designers, t-shirt companies, and other textile companies started making masks. 

Other businesses did not (and do not) have an obvious next step. They are very good at what they do and there is no longer a market for that competency (and may not be one for the foreseeable future). As they work on figuring out what’s next, the initial pivot is from an external focus to one that prioritizes customer retention and increased attention to the business of their business—planning. 

But now, as states, local regions, and businesses begin to reopen, it is time to pivot once more. And navigating this pivot means answering some challenging questions.

Is it Time For Me to Pivot?

I was recently on a video call for the St. Louis region, State of St. Louis Business: Weekly Call with Local Leaders. It was there that I was able to further articulate some of my thoughts around this theme of transitioning—or pivoting—business in this time of crisis. 

I don’t think everyone can pivot. Nor do I think all businesses will survive this crisis. I do believe that the same questions that new, startup businesses need to answer are the ones existing businesses must address when deciding whether their next move will postpone the inevitable, or truly reposition them for future success.

As we move into reopening and reimagining our businesses, there are three things we must ask in order to determine if, when, and how to pivot.

  1. What new problems are there to solve? Or can I solve existing problems in a new way?
  2. Am I in a position to solve them?
  3. Will anyone pay me to solve them?

It always starts with understanding what problem you are solving and for whom. Ultimately, the customer will tell you whether it is a problem worth solving and one that they will pay you (a sufficient amount, consistently) to solve. 

There are lots of problems to solve. The ones that persist—the seemingly intractable ones—often have no payor. For established businesses looking to move into new markets, or for ways to serve their existing market in new ways, the revenue model is critical. It’s not just “can we do it?” but, “should we do it?” What will it take? What’s the reward? How can I test key assumptions to make sure I have a good sense of what to expect before investing time and money into making the shift? 

It’s also important to distinguish between a shift that makes sense in the short term, versus a long-term realignment of company vision, strategy, and execution. Sailmakers shifting to making masks and face shields is a short term way to use existing resources (people, inventory, and equipment) to provide real, immediate value. 

It is unlikely, however, that future mask sales will ever be able to replace sail making revenue or that the company will have the resources to retool its manufacturing operations to move entirely out of the sailing industry into the PPE vertical. If sailboat sales decline and owners forgo repairs, the sailmaker has few choices. Then again, if during this time they find a partner and build new relationships in the PPE market, they may be able to transition into a whole new line of business—the ultimate pivot.

New Solutions in a Time of Crisis

I have seen many great examples of businesses reimagining their key service or product in the midst of COVID-19, both in St. Louis and around the country. 

In the tech industry, it is common to pivot, even on a normal day, so it stands to reason that we are seeing (and will continue to see) great examples of this come out of that space. 

A Seattle company is one example. Business events, trade shows, and conferences use their technology to connect with attendees before and during the event. With all gatherings being postponed or canceled, however, they faced the possibility of losing all of their business overnight. 

Instead, they chose to pivot. They saw the impending shift from in-person events to virtual events and decided to adjust their product and services to offer support to event coordinators who were also pivoting from physical to online venues. Now they help those event coordinators create two-way video chat rooms to recreate the networking feel of an in-person business event.

Locally, that has played out with several of my clients in the corporate event space who are forging new relationships with online meeting tech experts and carving out a niche as online event specialists. They provide value from a production management perspective and can help their clients (the event hosts) by taking on the responsibility of sourcing the right technology to create the desired event experience. This is an experience that will need to become increasingly sophisticated as we all grow accustomed to Zoom calls and demand more from our virtual and hybrid experiences, be they multi-day events or live-streamed yoga classes.

Their choice to pivot is a focus on the long game. They can’t replace their gigs for spring and summer, but they can position themselves as expert partners for event hosts who will need to continue planning activities for fall and beyond. 

The faster the platform experts and the event planning experts can assess the market need, adapt their products and services, and get real-time feedback from current and prospective clients on what they want, the faster they can pivot to retain and attract new business. 

This is just one example of a business pivot, but regardless of your industry or business type, the solutions and decision to pivot come from the same place:

  1. What new problems are there to solve? Or can I solve existing problems in a new way?
  2. Am I in a position to solve them?
  3. Will anyone pay me to solve them?

As you ask the important questions about how to reopen safely and what our new reality will mean for your product, service, or business as a whole, take the time to ask the key questions that will help you determine if it is time to reimagine your business.

Taking the Next Step in Business

For many business owners, myself included, pivoting is hard. We are learning new skills, and rethinking how to deliver what, just three months ago, was a known quantity. 

Since the beginning of the quarantine, I have advised clients to over-communicate—stay in touch with employees, vendors, and customers. Now it’s time to use those communication channels to test your new ideas and get feedback. 

In the midst of it all, be sure to mind your mindset. You don’t have to be relentlessly positive. You do have to focus on abundance. Invest in yourself. Invest in your business (run the numbers and measure results).

Separate your personal ability to be nimble and resilient from that of your company. You will survive this. Your business may, too. Both will be different. Be excited by what comes next, whatever it may be. 

If you think it may be time to pivot, or you know it is and you aren’t sure how to begin, I’m here to help. Sometimes the best way forward, in any situation, is together.

I recently shared a story about preparedness on LinkedIn. It was my first startup and there was no plan in place for a crisis, when our offices suddenly flooded. But we were lucky. With a quick look at who and what was mission-critical, and access to our data in the cloud, there was no downtime at all. It was work, as usual, the very next day. 

In that case, I learned the value of being prepared for the unexpected—particularly the adverse circumstances we may face as business leaders and owners like the unprecedented health and economic situation we are all currently facing. 

And while contingency plans for a crisis are important—and completely necessary—there are other types of preparedness we must choose as leaders. Preparation for growth, change, and opportunities, just to name a few. 

Right now, the most important level of preparedness for many is having the basic infrastructure in place so they can quickly apply for and use economic relief resources. Up-to-date financial information, accurate tax filings, consistent documentation of owner’s draws, readily accessible copies of corporate documents, financial forecasts, proper insurance coverage, established relationships with bankers, lawyers, accountants, and other advisors—these are among the basic requirements for sound business operations, and prerequisites for loan applications. It’s not too late to get your house in order. 

Looking ahead, we know there will be a time when the challenges are less dramatic, stressful, and threatening. On the other side of unforeseen circumstances lives opportunity. And when opportunity meets preparedness, anything is possible. 

If I Had a Million Dollars

One of the biggest opportunities we seek in business is that of additional profit and capital, or, simply put; money. We need money in order to upgrade, expand, hire, innovate, and grow. But what happens if we aren’t prepared to take effective action when the opportunity for more money comes our way? For many of us, that day may feel far off, but there are sectors where demand has increased exponentially and where demand will return faster than others.   

Preparing for the opportunity to secure and deploy capital goes beyond maintaining the status quo. It requires you to envision how you will use the money to sustain growth and profitability. 

Now is the time to get in the habit of developing financial scenarios—forecasts that document your assumptions about revenue and expenses in a given quarter, year, or period. You’ll use a combination of historical data (your financial statements), your knowledge of the current market situation (external factors), and your best assumptions based on your strategy (internal factors). Since no one has a crystal ball, you need to run best, average, and worst-case scenarios to stress test your assumptions and plan. Document your assumptions, and review and update on a regular basis. 

It’s a skill that requires practice and a willingness to be unflinching when assessing the internal and external factors impacting your business. But doing so allows you to identify when to stay the course, pivot, or bailout. Most people don’t do forecasting alone.

Why Preparedness is the Key

We think money is the answer. Our thought process says, If I had more of it, life would be better, easier, less complicated. 

What we know in business and in life, however, is that more money doesn’t always lead to the outcomes we desire. When money is infused into broken systems, it is used up before it can lead to lasting change. We see this when lottery winners who go broke, and venture-backed firms go bankrupt. 

Not all money is good money. And money without a plan can be worse than no money at all. Even money intended to help us stabilize our businesses, keep people employed, and survive the current crisis may have unintended consequences. It is easier to evaluate new opportunities when you already have people and processes in place. 

The more time you spend setting up and tending to the business of your business, the better prepared you will be to deal with current and future circumstances. Spend some time:

Every action, every decision should be based on a clear vision backed by a specific strategy and well-defined roles for everyone involved. Bad decisions (which will happen) are costly and need to be minimized. While a lack of money is problematic, it does require us to be creative, resourceful, and resilient as we work on being prepared for the future. 

Money, on the other hand, can give us the freedom to be less precise. This is particularly true when we get an influx of money without preparation. It allows us to make decisions that feel good, productive, and important. But decisions that aren’t necessarily strategic and effective. 

Being prepared lets you be resourceful, creative, and strategic with as much information and foresight as possible.

Building a Contingency Plan for Opportunity

Whether you are executing a pivot—changing product or service lines, targeting a new market, exploring a new territory, moving to a new sales channel—or are focused on surviving, planning now can help you thrive later. As is often the case in business, the money likely won’t come unless you can demonstrate to yourself and others how that money will allow you to accelerate success and create sustainable profitability.

Don’t do it alone. Lean into your peers, mentors, advisors, trusted friends, leadership team, and professional experts to share ideas, test assumptions, and talk things through. You need a variety of perspectives and specialties to understand and respond to the complex opportunities before us. Whatever our new normal ends up being, it will require new plans, skill sets, expertise, and resources. Let the hard work you are doing now—to react and respond to the unforeseen and unprecedented—lead you to think about the plan you need to have in place for the opportunities of tomorrow. 

Purpose First Advisors supports small businesses, growth-stage companies, and entrepreneur support organizations by providing strategic business consulting and coaching. Contact us to learn more or to book a consultation with our team.

We all communicate differently. Depending on who you ask, there are anywhere from 3 to 6 (or more) styles of communication that we all implement at varying degrees and in certain situations. Regardless of how you choose to communicate, however, the art of communication itself remains a core function of leadership, especially in our current reality. Business owner, publicist, board member, strategist, or entrepreneur—whatever your current role—there are certain tools that remain essential on a normal day and in the midst of a crisis. Communication is one of those tools.

Be Authentic and Consistent 

One question we are all facing right now is: how? How do I effectively communicate with my clients and customers? What do I tell my employees if I can’t see past the next month? How do I keep lines of communication open when I don’t know what to say? 

There is no one-size-fits-all solution to our current dilemma. Others are asking the same questions you face every single day. And while your leadership style, situation, or business may warrant a unique approach to communication, there are a few things we have in common that we can learn from one another. There are ways to communicate that will help us be effective, cautious, and empathetic. 

Communication—especially now, but even pre-COVID—is more helpful to our audience when it is authentic and consistent. Authenticity allows us to pull from our own experiences, our current struggles and achievements, to meet people where they are. It means we are open, accessible, and honest. And it means we can be trusted. 

When it comes to consistency in communication, it is important to note that even on a good day, according to research done by Scientific American, processing verbal input requires a fair amount of thought and focus. And today is not your average day. 

It is okay to share information more than once. In fact, this is a great time to over-communicate. We’re all overwhelmed, so hearing things multiple times in different ways from different people helps us integrate new information. 

Authentic and consistent communication, particularly now, means being more vulnerable and transparent than you may have been previously. It is a reminder to those around you that we are on this journey together—owner, employer, client, vendor, customer, and employee.

Outbound Communication

In the midst of our efforts to be great communicators during this time, it isn’t unusual to make some missteps in our outbound communication. Brands and businesses everywhere are wondering what is appropriate to share with their audience. Is it okay to pitch a new business idea or product? How do we acknowledge the crisis in front of us and still do business? 

If you aren’t sure what to say, take a moment to pause. I have spent a lot of time over the past several weeks pausing to re-evaluate. What do business leaders need to hear right now? What questions are they asking? And what information will be most beneficial in their immediate situation?

The same applies to our customers and our digital audience. It is okay to pause and evaluate the best way forward, but don’t stop talking altogether. Let your customers know that you are still here and that you are in this with them. And give them the opportunity to continue to support you and your business. People want to act but, as always, they need to be invited to take action. Those who can’t afford to buy right now won’t take offense if you are true to your mission and values. Conversely, those who can buy won’t unless you make it clear how their purchase relates to their values. 

By applying the practice of authenticity and consistency to your outbound communication, you can continue to build trust and connection with your customers. What does that look like? Educate your customers about what is happening in your industry, your business, or how you are implementing CDC best practices. Share how you are collaborating with other businesses to help those in need. Help them solve problems that they are currently facing. Be a trusted resource. And above all, keep communicating. 

Keeping Employees and Contractors Informed

On the other end of your business are those who help keep it running smoothly. Leading our teams requires that same authentic communication. 

For those who have employees and/or independent contractors, it is incredibly important to communicate what you know about the state of your business and how it’s being impacted by COVID-19. That means telling them what you know, as well as what remains unclear. 

Help them understand what you have identified as mission-critical areas of focus. What key decision points are you evaluating? How can your employees help ensure that the company is okay now and for the long term? 

While you don’t need to distribute your P&L to your entire staff, now is a great time to make sure everyone understands the status of core customers and accounts, what new business is in the pipeline, what projects have scaled back or are on hold. And as difficult as it is to discuss money, now is the time to let your team members know what changes the company is making to preserve cash and manage cash flow. 

Above all, leading with clear, authentic communication gives you an opportunity to invite your employees and team members into the process of responding to a challenge that impacts the entire company. You don’t have to navigate this journey alone. Communication clears the way for you and your team to work together to retain business, connect with potential new customers, support each other, and stay focused on revenue. Stay authentic. Communicate consistently. And keep moving forward.

Note to reader: This post was written at the start of the pandemic and has been very popular. It’s been updated from a post pandemic perspective. You can find it here.

This season is unprecedented. I think we have safely established that truth. I’ve spent the past two weeks processing, speaking with other entrepreneurs and business owners, and doing my utmost to take care of business as usual — just as the rest of you are. 

But business isn’t usual right now, and this is what I know: nothing about this situation is easy. For anyone. As I shared with some of you recently on other platforms, the COVID-19 outbreak and all that it entails has highlighted the huge inequities in our society, including the lack of resources for small business owners. 

As my colleagues at Interise shared, “Public health experts now fear that coronavirus will exacerbate the vulnerabilities of resource-strapped communities-with devastating consequences.” These vulnerabilities include a lack of healthcare, personal income, and small business capital.

Small businesses are the lifeblood of our economy — as employers, as resources, and as centers of innovation — and yet so many of them are struggling to stay alive in the midst of nationwide shutdowns.

There are many things we can do as individuals to support our local businesses, including ordering take-out (where possible), buying gift cards, making purchases online, buying necessities from local grocery stores and butcher shops, and prepaying for services we know we will need in the future, like haircuts, lattes, dry cleaning, and gym classes.

For small business owners, the options feel less tangible. Our ability to navigate this season is not found in spending, but in our own willingness to work together, plan, ask for help, and in some cases, start to dream again. 

In the midst of all the change, and seeing the amount of difficulty our nation is facing, my goal is to simply be here. I’m here to help, to listen, to encourage, to cry, and to laugh. I’m here to share this moment with you. 

As I process and listen, and wonder how I can help, these are the things I feel most compelled to remind you of. These are the things I myself need to remember as a business owner managing this season.

Stay connected 

I’m grateful for the opportunity these uncertain times are giving me to connect with colleagues and clients on a deeper level. We are taking care of business, and we are taking care of each other by talking through new and complex decisions, strategic scenarios, unforeseen challenges, and fears.

It is authenticity and vulnerability that will deepen our connections, keep us encouraged, and allow us to safely seek advice when needed. 

Stay connected with your team, your mentors, your community. Don’t hesitate to be that shoulder that someone else needs. It is through connection that we will come out of this stronger — stronger leaders, owners, and individuals. 

And through it all, stay connected with your customers and clients. Stay grounded in and lead from your mission, vision and values as you make hard decisions and engage with key stakeholders. 

People do business with people, and we need to be in deep, authentic relationships with our customers, employees, and vendors — now more than ever. Lean into your relationships and continue to be of service, create value, and create connection.

Plan for the Future

With so many unknowns, it can be difficult to plan ahead. As best you know how, take time to look down the road a bit and build anticipation for the future. 

When’s the last time you ran financial forecast scenarios? I know it can be scary to look at numbers, but knowledge is power. Knowing what expenses you can control and how changes in revenue impact your cash flow are important for the near and long term.

What content are you creating? The value-added content you create and share today will engage the people you will do business with tomorrow. Stay consistent on your digital platforms as well as your newsletters and other communications. 

What conferences lie ahead a year from now? Allow yourself the space to get excited as you plan your approach to the next available opportunity to connect with colleagues, customers, and prospects. 

Do you have any unmet goals or business opportunities? Now might be the time to flesh out those ideas and begin pursuing some dreams that were living on the sidelines.

Build a Better Contingency Plan 

As painful as it may be, now, more than ever, is the time to consider where the gaps are in your current contingency plan. What worked and what didn’t when COVID-19 first impacted your business? What would you do differently next time? 

We can always improve even our best laid plans. Let this situation inform you. Use it as a guide to add to your strength, shore up your weaknesses, and be better prepared for the future. Keeping a journal can help you reflect on your real-time problem solving as you move out of reaction mode and into planning mode. 

Support One Another 

I mentioned some ideas above for how we, as individuals, can support our local businesses. But as business owners, we also have an opportunity to support one another. This may look different for everyone — especially depending on what your business does or sells — but regardless of what you do, there is a way to share the load. 

I find it uplifting when I hear stories of tattoo artists donating gloves, masks, and gowns to local hospitals that are dangerously low on supplies. 

Bakeries donating food to homeless shelters so that no human being goes unfed. 

Art supply stores providing pre-cut fabric and elastic so that community members can sew masks for healthcare providers. 

All of these things are reminders of the kindness and beauty of humanity, and the fact that however small our offering — like sewing fabric into a surgical mask — it has a profound impact on those around us. 

We can also be intentional about doing business with other small, local companies. What can you buy locally that you might be sourcing from a national brand right now? There are locally owned  providers in nearly every field — they are often just lesser known. In my area, I know I can find locally owned IT services, e-newsletter platforms, accounting and legal services, office supplies, mail houses, printers, designers — the list goes on. You probably can, too.

Keep Learning 

One thing I realized recently is the incredible strength I gain from listening to others share their journey. That is why I choose to invest time in listening to podcasts and reading the latest books and articles. 

We created Entrepreneurially Thinking to elevate and celebrate the stories of entrepreneurs and inspire others. Right now, we are trying to strike the right balance between inspiration for our listeners and respect for our guests. While we have paused recording sessions for the time being, we continue to release new and encore shows so listeners can continue to be energized by the stories of others. 

Hearing other business owners share and process their journeys provides a jolt of inspiration and a reminder that this will, eventually, end. Let’s choose to come out on the other end with more resources, knowledge, and ideas than ever before. 

Make Decisions Differently

On an “average” day our capacity to make quality decisions wanes. By the end of the day we experience what’s known as decision fatigue, when we are prone to making sub-optimal choices.

It’s inevitable that in this time of extreme uncertainty, mental and emotional fatigue will set in more quickly as we’re expected to make more decisions, faster, and with less information. 

You simply can’t expect yourself to make the same number of quality decisions as you’re used to making. None of us will be as productive or efficient now as what we are used to in our normal daily lives. 

And that is ok. You are doing other things that matter more right now: taking care of yourself and loved ones, shifting your focus to a digital way of life, and navigating constant change. 

Instead of pressuring yourself to manage decisions like you did a month ago, give yourself grace to make decisions a little differently. 

You Are Not Alone

One of the most important things we can do as business owners right now is remember that we are in this together. And we will walk through this holding one another up if we need to. 

As you manage difficult changes, make profound decisions, and lead with your values, know that you are not alone. I see you. I understand that what you’re facing is not easy. And I’m here to help. 

When decisions feel most difficult and you are unsure how to proceed, make a choice to focus on what you can do, instead of what you can’t control. Learn, grow, support your loved ones, and take it one day at a time. 

I look forward to all the great things we will do together — now and later — and the better humans we will become along the way.

maroon quotation marks
  • I have said many times to colleagues, “I wish I had hired Christy Maxfield a few years ago.” Even with a 27-year-old company, I have learned so much from her. Christy has been an invaluable partner helping me operate my company more strategically, i.e. strengthening financial reporting, guiding succession planning, navigating complex people decisions, and increasing the overall value of my business. Christy brings insight, clarity, and genuine care to her work. Her disciplined approach and guidance has made me a more confident and effective business owner and positioned my company for its next phase of long-term success.
    Laurna Godwin
    Owner, Vector Communications
  • Christy’s coaching has has been instrumental in elevating my business to new heights. Her ability to facilitate strategic conversations has been transformative, helping me identify opportunities, overcome obstacles, and refine my business strategies for optimal results.
    Paya Sample
    Owner, Peak Leaders Collective
  • Christy took the time to assess my business model, understand my goals, and identify areas for improvement. What impressed me most was her ability to provide tailored strategies that were practical and immediately implementable.
    Sue Bailey
    Owner, Celebrating Life Cakes
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