If you are one of the lucky SMBs you’ve successfully navigated the PPP gauntlet and came out on the other side with a win and some cash, but the clock is already ticking, so now what?
This question is what I am helping so many of my clients answer.
The first option is keep things as they are so you can qualify for the threshold to loan forgiveness which is the “easy” option but one, in my opinion, will have you ending up in the same place 60 days from now, if not worse off from a team perspective. Stress shows the cracks and vulnerabilities in teams faster than anything else! More importantly, the PPP loan might “float” you for the moment, but it won’t be your life raft for long.
The second, and I think more strategic move, is to look at your team and ask yourself if they really are the right people and if not, who needs to make up your team moving forward.
Now is the perfect time to get crystal clear on the best team you need to give your company the best shot at sustainable success post covid and start hiring the right people. This is not the time to sit on your hands waiting for life to go back to normal, it’s not going to. It may restart but the life we have BC won’t be anything like what the new future looks like. Personally I think it is going to shift a lot of the ways we do business, how teams operate, and scaling, but not for the worse, I think the better!
This may sound a bit counter intuitive to hire in this climate but stick with me…
We are seeing now more than ever that the money we invest in our team needs to produce an ROI and ROTI.
It is not enough to just have bodies. In fact I would argue that this is the MOST important time in history to strategically hire for talent that serves the bottom line and the flow of the business, not just get tasks done.
In the past, people have hired worker bees to take tasks off different plates to increase flow which has helped with productivity but it has come with a complexity cost as well as a profitability cost – the human capital cost of companies is often times the #1 expense and if you are bleeding right now, this is the place to look for a tourniquet. Having worker bees may have worked before, but that isn’t going to work moving forward into the new normal.
My clients call me the Business Doctor for a reason. I effectively diagnose what lies in the way of business success and prescribe an effective, yet simple strategy. In my opinion, the RX your business needs right now is two fold —> Stop the bleeding and make sure your team is made up of full potential players.
If you do not know what a full potential player is, don’t worry. It is a Golden Key term so let me explain.
Full Potential Players have two huge advantages over worker bees. First, they are growth oriented. They are always coming to you with a plan to get themselves and the company to the next level. This means that you don’t have to do all the thinking, you now have a partner who is invested too. The second is that they are revenue producing. Now, I don’t mean sales people here, though those people obviously do bring in revenue, the type of revenue I am talking about is even more strategic. They bring in revenue because they are looking for the post conversion opportunities to KEEP and GROW revenue.
Let me give you an example. Let’s say one of your players is a chief of staff. Normally they are not on sales calls, but rather working with the team and interacting with clients. A player in this role very likely will look for opportunities to connect with your clients and remind them of how you are helping them, looking for other ways you can be of service AND helping you stay top of mind so they refer their fellow business owners to you. A win-win right?! Right!
For every $1 you spend with a player you get back $2. Worker bees tend to be more on the even split or even $.75 on the dollar category.
Do you see the benefit to really getting clear on who is on your team versus who you need to have on your team to not only service but thrive post covid and PPP?
So back to PPP. This is probably the only time in your business life that you will have an opportunity to have funds that have to go to payroll to be forgiven.
If you are serious about your business coming out of this ahead of the game, I would use that time to audit the health of your team/business and see what roles are truly critical to keep the level of delivery/service up and revenue steady or, everyone’s preference, grow revenue.
This is the perfect time to get clear and have the best lean team in the game so that when things do really open up in the future you are in an even better place than before.
If you need help figuring out who on your team is right for the role or who the best team around you is, check out our free Team Assessment and Planning Resource or get in touch to learn more about our Full Potential Team Consulting Service.
Stay safe, sane, and sanitized out there – and keep scaling smart!