Have you ever thought that as a business owner you could be suffering from PTSD? What is PTSD – Post-Traumatic Stress Disorder (PTSD) is a mental health condition triggered by experiencing a terrifying event. When we talk about PTSD, we think of soldiers in a war zone. As we look at the events over the last several months, the events that have happened since March 2020 may leave you feeling the same. I read an article from the Value Builder and I thought that this was an interesting article.
If you’re like a lot of us as business owners, the first quarter of the year was progressing in a great fashion. Year over year sales and profit growth. There was no end in sight of the positive things that were happening in our business.
Then…bang What happened!
A super virus started in China and began to terrorize the world. Professional sports began to be was cancelled. One by one, countries began to close their doors. Businesses for shut down for an undefined period of time
All of these things were a significant blow to your business, unless you offer an essential service. Hopefully you triaged your business and have stabilized. In a lot of cases you may be at a point that you are thinking about closing your doors. Either way, you, your family and business are looking at life differently as a result of this pandemic and other factors that are happening today.
Now, as things beginning to reopen, you may notice a change in your outlook. The Mayo Clinic reports four symptoms of PTSD:
• Intrusive memories: recurrent, unwanted thoughts
• Avoidance: trying not to think about the trauma
• Negative changes in thinking and mood: destructive thoughts about yourself and other people
• Change in physical and emotional reactions: being easily frightened, overwhelming guilt, or substance abuse
Any of those sound familiar?
• If so, you may be experiencing any of these you are exhibiting signs of PTSD. There are three constructive things you can do now.
#1: Talk to Someone
Speaking to an advisor/coach about how you have been impacted your business can be therapeutic, we are here to help.
#2: Rebuild a More Durable Business
Commit to building a business that can withstand future shocks.
Option #3: Sell
Many owner experienced 2008–09 global financial crisis, then were impacted by this pandemic may not have the stomach for another disaster. As a result, it is time to plan
If you find yourself choosing option 2 or 3, your immediate action plan will be the same. There are some things you can do now that will make your business more durable and more sellable:
• Differentiate your products and services. You’ll have more pricing authority in the short term, have better cash flow, and be more attractive to an acquirer in the long run.
• Develop recurring revenue streams that generate sales while you sleep. These can be in the form of service contracts, subscriptions, or maintenance plans. See what you can do to generate revenue automatically.
• De-risk your business, ensuring you’re not too reliant on a single customer or supplier.
• Document and Systematize your processes to lessen your dependence on a key employee
• Clean up your bookkeeping.
• Generate as much cash as possible from customers up front to create a positive cash flow cycle.
Your business is your largest asset and part of who you are. When that gets threatened, it’s natural to feel traumatized. Its time to redirect your energy into building a more durable business, you may never have to experience something like this again.
Do you want to improve the value of your business? Simply contact me to talk about the next steps.
AdviCoach Business Advisors