How the Business Crisis Trend Affects Your Ecommerce Business
I recently read that Jeff Bezos’ wealth went up $24 billion as a result of the surge in online shopping. While that may be true for Mr. Bezos, it’s a myth that all eCommerce companies are booming now. I’m wondering, how is it going for you?
The reality I’m seeing with eCommerce clients is that it’s a mixed bag. Some are soaring, some are shuttering, and some are downright sputtering. If you’re one of those sputtering right now, let’s look at where you are now and what you need to do next.
The Business Crisis Trend
At first, you were in the Shock stage. We all were. Your biggest question was, “What does this mean for me, my family, my employees?” Gradually, you dealt with the health concerns, and then the financial concerns set in.
Those hardest hit moved to the Desperation stage as it sank in that sales were off, 401k’s had plummeted, and the kids are around all the time. At this stage, it is easy to overreact. Don’t beat yourself up if you were one of the ones feeling like you needed to make a move, take some kind of action, and you needed to do it quickly to stop the bleeding, so to speak. It’s a natural reaction, but there’s a better one.
It’s Important to Take the Right Actions
To make sure you are taking the right actions, we encourage moving quickly into the Evaluation stage. This will give you the chance to take deliberate steps and avoid overreacting, which hardly ever works out well in the long run.
First, focus on your data. Get busy understanding your data. Right now, you may be worried about cash. You need to be confident of how much you have and how long it will last.
Second, plan your cash; make that buffer last as long as possible.
Suspend, reduce, and delay what you can.
Determine if SBA loans will help; plan for repayment. If your sales won’t return, don’t take the loan. The payback terms are important, not just the low interest rates. Be sure you understand them.
Understand the payroll laws; does it make sense for you to defer social security?
Look for other sales opportunities; do you have stale inventory that can move now? Is merchant fulfillment an option? Should you move into other platforms that may perform better for you now?
Evaluate your most important option and focus on that one thing. Being unfocused and scattered can lead to feeling overwhelmed. Distractions are the norm these days, so address this head-on.
Resources to Help
At Bookskeep, eCommerce financial solutions are our Jam! Click here to get a copy of our Ecommerce Sellers Guide to Economic Uncertainty. http://info.bookskeep.com/financial-uncertainty-guide
We think understanding and planning cash is so important, especially right now. If you’d like our 13-week Cash Flow Tool to help you get there, click here.