Since the dawn of time, humans have had a built-in fight or flight instinct when faced with danger. Dealing with the current COVID-19 pandemic and the impact on your business is no different. There are essentially two paths: You can fight, which involves standing up to this challenge and meeting it head-on, both in these initial stages and for the longer term. Or you can choose the “flight” route. This means cutting your losses, abandoning employees, and essentially finding a hole to go hide in. Then, when this all blows over, you rebuild – hopefully. The problem with the flight option is you may not have a business to come back to.
Let’s look at these two options in a little more depth. What do they mean? What are the consequences of either path?
The “Flight” Option
If you choose to cut and run, this entails laying off all or most of your people to conserve cash. This is a live-to-fight-another-day approach. Essentially you severely shrink or shut down your business for a period that could range from weeks to months. It’s just a guess based on how little we know about how long this crisis will last.
If you choose to cut and run, this entails laying off all or most of your people to conserve cash. Contractors who decide to take the different path may actually need to staff up in the months ahead.
With this approach, you are hoping things will blow over quickly so you can start to rebuild. This thinking is fraught with many dangers. Hope is not a strategy. If you let key people go, who is to say they will still be there when you decide to come out of your bomb shelter?
Contractors who decide to take the different path may actually need to staff up in the months ahead. They will be looking to hire well-trained and knowledgeable people. We are already experiencing a severe technician shortage. If your people find work elsewhere, how anxious do you think they will be to come back to you after you abandoned them at the first sign of trouble.
I’m not saying this will definitely happen, but if you choose the “flight” path, but there is a pretty good chance you could damage the business you worked so hard to build – possibly irreparably. Enough negativity. Let’s look at the fight option.
The “Fight” Option
By deciding to take a stand and fight, you have many possible options. You still may have to trim some staff but do it sparingly. If you cut too close to the bone, you may not come back from it. If you decide some layoffs are needed, do it in a way that shows you still care. Look for ways to stay connected, even provide support during the temporary layoff.
Consider gestures like having groceries sent to their homes each week, paying their rent or mortgage for a month, or providing a bridge loan if they are short on cash. Maybe it’s continuing their healthcare benefits – either fully or shared – depending on your current plan. This is allowed in most states. Be sure to check with your insurance company first.
Consider offering distance learning to all your employees, whether they are on the payroll or laid off. This keeps them engaged and connected with your company and shows you truly value them.
If you have access to online training programs like NCI’s Online University, which has an unlimited training option for all employees, you can do this very inexpensively, but it could return significant dividends. People will remember what you did for them when they look back on these days.
As far as propping up your business for the short-term, if you need cash, look into some of the SBA loans that are being offered. At the time of this writing, there is a $2 trillion “Stimulus” Package going through congressional and presidential approval that includes loans/grants and other financial help for small businesses. Stay apprised of what’s going on as this is evolving day-by-day.
Communication Is Key
Perhaps the most important piece of the “Fight” option is how you plan to bring in business during the current state of things. I’ve heard from contractors across North America that one of the primary reasons business is waning is customer fear. Let me repeat that: Most customers are afraid to have outsiders in their homes while they are self-quarantining and going through this ordeal. Wouldn’t you be?
How do you overcome this fear and keep business flowing? By communicating how you will keep them safe while your people are in their home.
So how do you overcome this fear and keep business flowing? By communicating how you will keep them safe while your people are in their home. It’s more vital than ever that you keep positive and informative messaging flowing to your customers as often and in as many ways as possible.
Your first step is to make sure you have safety protocols in place and train your team on how to keep themselves and your customers safe.
This includes determining what protective gear they need to have, having step-by-step protocols for service techs, installers, and salespeople. Each of these may be a little different. Also, have a protocol on how they interact with your customers. You likely don’t want your field people wearing masks when knocking on doors – this will only serve to scare them further and not even open the door.
Your protocols should include good social distancing practices. For example, wear Nitrile or Vinyl gloves. Knock on the door and step back several feet. Put on booties before you enter. Most of this is common sense, but worth formalizing. NCI is working on a protocol as this is written. We will have it on our website soon to download at no cost. Other measures include carrying disinfecting wipes and cleaning any surfaces you need to come into contact with, etc.
The most important thing is, no matter what protocols you have, you need to communicate them upfront in all your messaging including your website, emails to customers, mailings, and so forth. This will help customers be less apprehensive about letting you into their homes.
Try a telemedicine-like approach with customers - especially with sales calls. Using apps like Zoom, GoToMeeting, and others, your salesperson can set up a virtual visit with a potential customer, asking them to log in on their phone. They would go through the sales call in a similar way they do now, asking questions, and so on. They could ask the customer to walk over to the equipment, thermostat, etc. and focus the phone on specific things. Of course, for attic and crawl installations this part may not make sense, but at least you can begin to gather data, and put the customer at ease.
The next step would be a live visit, which might entail your client letting you in, and going to a different room or the back yard while you look at their system, test if needed, etc. This can work on service calls as well. Once they have collected what they need, they can schedule another virtual visit to go over options, findings, etc., and then present the proposal, and email it to them for acceptance.
Look for articles in the days ahead on the subject of being proactive in dealing with the current situation. There will be much written, and much advice given, both good and bad. You are in control of what you want to read and believe. This challenging time will define many of us based on how we deal with the enormous pressure and burden of this pandemic, both personally and in our businesses. The two will be intertwined. May God bless and protect you and your people during this difficult season.
Dominick Guarino is CEO of National Comfort Institute (NCI), (www.nationalcomfortinstitute.com), one of the nation’s premier Performance-BasedTM training, certification, and membership organization focused on helping contractors grow and become more profitable. His e-mail is [email protected]. For more info on Performance-Based ContractingTM go to WhyPBC.com or call NCI at 800/633-7058.