How to Benefit from the Pandemic

The forced slowdown is hard, but you can use this time to make your business stronger

BY ROGER MAGALHAES

The pandemic triggered by the coronavirus is not news anymore. Everyone around the globe is being affected by it to a certain degree. However, this crisis had a side effect that not many were expecting: a crippled economy. As businesses were forced to close, many owners were not prepared financially (or emotionally) for the sudden loss of income.

What can we do now, while we still have some free time on our hands, to get our companies ready to gain market share once the economy returns? Below, I share five suggestions to help you prepare your business to be stronger (and more profitable).

Create a Regular Schedule and Stick to It

If you have difficulty maintaining self-discipline, staying home without defined goals can be challenging. The TV, the fridge or even frequent walks around the neighborhood can cost you hours that could be directed toward improving your business. I created a colorcoded schedule for myself during the lockdown. I even included time for naps and TV. Working from home does not need to be as formal or strict as working at your shop or showroom, but following a detailed plan will make you more productive. Once you break your day down into small tasks, it will be easier to accomplish results. As a bonus, it will boost your self-esteem too.

Organize, Clean Up and Learn

Until recently, I was complaining that I had no time to keep up with all my work and I was running behind on everything. Guess what? Now, I have time to fix that and catch up. You should do the same.

Utilize the current downtime to clean up your shop, your working van, your showroom and your office. Get rid of extra parts, extra catalogs and tools or materials that are taking up extra space. Make an assessment about your current processes and the efficiency of them. Should you keep them or replace them with something better? Need new displays for your showroom? Take the time to sort out all the parts and materials that are piling up in the corner of your shop. Can you easily search and locate tools in the van? Do

you have all of your screws, materials and brackets organized? Take this time to create a clean and easy-to-navigate environment. You will be more productive.

Also, use this opportunity to learn a new product or sharpen your skills. Perhaps you always wanted to get into motorization but were too insecure to sell it. This is an awesome opportunity to practice. Utilize the downtime to enhance your knowledge. Eventually, that knowledge will translate into profit.

Reevaluate Your Business Model

It is easy to push things around or overlook inefficiency when we are busy. Perhaps you decided to open an account with a specific vendor because of a single request. Or maybe you kept that soso employee just because he or she was “helping.” Maybe your commercial space was too big for your current needs, but you did not want to go through the inconvenience of moving.

Now that you have extra time and limited income, it is imperative that you reassess your processes, product offerings and staff. Perhaps it is time to cut loose those employees that don’t really represent your organization. Perhaps it is time to change your business model. Michelle Wollmann, owner of Accent Window Coverings in Reno, NV, decided to switch her operations recently. She told me, “We have cut down our employees to just our installer, my husband and myself. When we reopen, I will only be hiring back my assistant. I will no longer have other sales staff. This from a business that was doing close to $3 million before all of this.”

Maybe this is the opportunity you were looking for to get out of the industry to pursuit your true passion. Perhaps you are in the position to take over some of your competitors and gain market share. Take the time to study different scenarios. Run the numbers and, if they make sense, go ahead and implement your strategy.

Introduce a New Product or Service

Take this opportunity of slow sales to go through your offerings. Revisit your sales reports and compare products and services sold in the last 12 months. Are you in line with your competitors? Do you stand out by offering something unique in your area? Maybe it is finally the right time to introduce a new product to your clients: awnings, window film, color consultation or art-hanging services, for example. Or maybe it is time to get rid of a product or service that you don’t really enjoy selling or installing, or one that is not lucrative enough to justify maintaining it.

One thing I did years ago was consolidate my hard-treatment vendors. I went from 15 lines to about four. That move gave me more buying power and, therefore, better margins with each vendor since I was able to negotiate better discounts based on volume. That change also allowed me to be more efficient and leaner, as I did not need to buy as many samples and carry so many spare parts in my van. All of this has only one goal: make my company more efficient and profitable. Extra Money When You Don’t Need It

This topic might be a bit late for now, but it definitely will help you in the next crisis. I am a big saver by nature. However, I made a big mistake by not having a good cash reserve to be deployed in a situation like the one we are in now. My company produces a good stream of income, but I was using the surplus to pay off car loans and my mortgage faster, buy real estate and fund retirement accounts. Those are all good strategies in the long run to build a nice nest egg; however, I did not set enough cash aside for the present situation, where my income dropped by almost 80 percent.

Because of that, I was cash-strapped and had to negotiate payments with several of my vendors. Moving forward, I will be putting a small weekly contribution in a separate account. The goal is to grow an emergency fund equivalent to six months of liabilities. Once I have that in place—and only then—will I be allowed to use the surplus of the company to pay off loans and fund retirement accounts again.

Another suggestion is to open a credit line with your bank. Not to use it, but to have it available for times like now. Asking for money when you don’t need it is a lot easier. Besides having enough resources available, it won’t affect your bottom line.

I hope that those suggestions help you weather this storm. As hard as it is living through this right now, the crisis will eventually end and you will come out stronger and better prepared for the next chapter. Stay safe. V

Roger Magalhaes is the owner of Shades In Place, Inc., in the Boston area. He has received formal training and certifications from many of the country’s most respected vendors such as Somfy, Hunter Douglas, Norman Shutters and Lutron. He also attended the Custom Home Furnishings Academy for formal installation training focusing on drapery and other soft treatments. Roger is the founder of the Facebook group Free Speech Window Covering Pros and the Installation Instructor for the Window Fashion Certified Professional FastTrack program.

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