Top 10 Tips to Manage Current Macroeconomic Challenges
Coronavirus is not just a health challenge for entrepreneurs of color, it represents a potential economic crisis.
This Friday the 13th we find ourselves overlooking superstition and solely focused on the current state of the world. The coronavirus pandemic is an unexpected wakeup call regarding the power of globalization. It is also a jolt to our everyday lives — from managing kids who have no school to securing an adequate amount of toilet paper.
As an entrepreneur of color, the coronavirus is not just a health crisis, but an economic one — for us and our communities. New Majority communities typically lack adequate health insurance, grocery stores and financial institutions. The withdrawal of economic opportunity is even worse as stores close, transportation may be limited, and families manage major economic trade-offs.
As an entrepreneur of color, I wanted to share some tips to manage this crisis, as it will clearly impact us through 2020.
1. Prepare! Don’t panic. As entrepreneurs of color we are used to being underserved and marginalized. This situation will last longer than a micro-aggression; draw on your everyday resilience and the strength of our ancestors.
2. Take time to adjust your projections and level set expectations. Plan for this to last through 2020. Don’t give up but be realistic. Be more diligent in reflecting on the weekly trends of your business. Review your CEO dashboard more regularly so you have as much data as possible to make smart decisions.
3. Communicate regularly with your stakeholders. Everyone is nervous. Let your staff, board and customers know you care and keep them posted on any and all changes to internal/external operations.
4. Take time to engage in scenario planning for all lines of business. Do this with your team so that you are all aligned, and you have all the perspectives needed to make the right decision.
5. Review any and all contracts for any key clauses that may impact production, payment, delivery, etc. in these times of crisis. We are learning that epidemics are the opt-out clauses for many contracts as we never thought this could happen. Read the fine print carefully and often.
6. If you are a consumer company, be mindful that customer discretionary income will fall. Plan accordingly as 3 out of 4 Americans live paycheck to paycheck.
7. If you are a tech company, remember that growth outweighs profits. Therefore, double up on customer acquisition and tech developments as needed.
8. If you are in the process of raising money, then close as soon as possible — even if that means taking on less funding at this time. You can always leave the round open but get the cash needed so you do not lose momentum.
9. Create a policy on working conditions and set up the necessary virtual tools to remain in touch with your team and board. Consider Zoom, Slack, cloud services, etc.
10. Be mindful of how you spend cash; make sure each dollar has the potential to generate a return — financial or non-financial. Consider contacting your bank to secure or increase a line of credit.
I hope you find these tips helpful. Take the ones that work for you and share them all with your peers. The biggest mistake at this time is to not communicate with your team, peers, stakeholders, and community.
We are all in this together and we need to look out for each other and our communities.
I will see you on the other side of all of this madness!
We will be alright!
