STEPHEN JACKSON

THE SMALL BUSINESS SURVIVE & THRIVE

GUIDE:How To Grow Your Business

During Challenging Times

T H E W O R K S H O P I N B U S I N E S S O P P O R T U N I T I E S - W I B O

The Workshop in Business Opportunities WIBO: For 50+ years, the Workshop in Business Opportunities (WIBO) has been dedicated to teaching people with a passion and strong entrepreneurial spirit how to start, operate, and grow profitable businesses. Our objective is to help more people become successful entrepreneurs; the goal is to create greater economic opportunity, improve local communities, and change lives. We help community-based entrepreneurs and small business owners increase their access to knowledge, networks, and capital, and we

work with them to navigate their way to entrepreneurial success. Their success provides economic stimulus at a local level and lays the foundation for empowered, thriving communities. Mission Statement Enable small business owners and budding entrepreneurs from under-served communities to obtain financial success by starting, operating, and building sustainable businesses that develop economic power, provide jobs, and improve communities. WHO WE SERVE Our entrepreneurs are mostly people who see starting a business as an avenue to a better life. We support mom and pop entrepreneurs in underserved communities who seek to bring Main Street back to life while fueling their local economies and seeing their dreams become a reality.

70% of our participants identify as black or Hispanic 80% are women 80% have income below $50,000 70% are not yet in business

OUR RESULTS Since 1966 when WIBO was founded in Harlem, we have trained nearly 18,000 entrepreneurs who have created over 34,000 jobs. Here is how WIBO is improving lives:

50% of WIBO businesses report that their business is their main source of income 42% of WIBO businesses saw an increase in revenue after taking the WIBO program 75% of WIBO businesses were up and running within a year of the program 54% of WIBO graduates are in business after five years (the national average is 20%)

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Introduction

Hello, I’m Stephen Jackson, CEO of the Workshop in Business Opportunities, Inc. – WIBO. In 2003 I started my 3rd business “RoaDDoggZ Productions, LLC." The company was a video production/event production company. We provided the production services for live events and produced corporate videos.

Business was good, and we were comfortable in our space. However, in late 2007 we started to notice that companies were pulling back on live events. Also, video production costs were going down as the cost of prosumer equipment got less expensive.

When the financial crisis of 2008 hit, we were headed to closing, shutting down and filing for bankruptcy. What saved us was making hard choices and pivoting our business. Our SWOT analysis determined that our best opportunity lay in social media and mobile marketing, which were ancillary services we provided for live events. We also had a small union client that would be unaffected by the financial crisis.

We pivoted our business by restructuring and becoming RDZ Media Group, LLC. A social media and Mobile Marketing Agency. We focused on a new client, “Unions” Our union clients were still hiring, still collecting dues from their members, and some unions were growing in revenue. We built our business in that financial mess by being honest with ourselves as we did the SWOT analysis and realizing that doing the same old things that we were comfortable with was not going to work. RDZ Media Group stayed profitable and grew to a multimillion-dollar business up until I sold the business assets in 2013.

We learned that ‘A strength overused becomes a weakness.”

Growing a successful business is long, hard work, and when the economy falls, and recession sets in the work of just keeping your business alive becomes more difficult. The pandemic of 2020 has thrown a lot of companies into turmoil. However, in chaos and adversity, there are opportunities to weather the storm and continue to grow your businesses.

This guide was written to provide you with crucial skills and insights to seize those unique opportunities that come from uncertainty in business.

Here’s the News Business and commerce take place in the best of times and the worst of times. Some companies fail when the economy is great, and some businesses grow and become successful in bad economic conditions. The success of your business is not about the current economic climate. It’s about your perception of the economy and the choices you make.

For this guide to be helpful to you, you must be willing to make some hard changes and choices in how you currently do business. This “New Normal” that is talked about will require companies

to explore new ways of creating exceptional customer experiences, new ways to deliver products/services, and new ways to develop a differential advantage to help you survive and thrive.

In these times, there are many “Experts” making predictions on what they think will happen with the economy, and social media has birthed even more “Experts” who are spreading their gospel. The advice I have for you comes a favorite quote of mine. “There are very few facts and many perceptions. The danger is when people express their perceptions as facts.” What we are facing in this country is unique and new, and every “Expert” is just giving their best guesses. When it comes to your business, the “Experts” can’t predict if you will fail or not. However, if your

thoughts are always on how bad things are, then your energies will flow that way, and your business may not survive. You see energy and action follow our thoughts, so I suggest that you work on ensuring that your thoughts are mostly positive, so you are focusing on positive solutions to survive and thrive. My accountability partner and good friend Barb Moses of High5 Leadership said it best. “The best thing to do in times like this is to either Give Back or Give Up.” I trust that you find giving back and not giving up the best solution for dealing with uncertain times in your life

It May Be Hard But Don’t Give Up

● Running a small business isn’t easy, even during the best of times. According to the United States Small Business Association:

○ 30% of small businesses fail within two years. ○ 50% fail within five years. ○ Only 25% of businesses last 15 years or longer.

● Any small business owner will tell you that running a small business is

challenging. When circumstances get tough, running a business becomes an even greater challenge. Throughout the years, many events have occurred that placed a squeeze on companies:

○ The Great Depression ○ World War I and World War II ○ The Cold War ○ The 2008 housing market collapse ○ The 2020 coronavirus pandemic

● During these difficult times, many small businesses folded under pressure.

They simply couldn’t keep going. However, many companies have survived these incredibly challenging circumstances. Some of them even thrived.

● A recent study indicated that over half the 2009 Fortune 500 list were launched during a recession or bear market. The following companies were all started during a recession:

○ Burger King 1953 ○ CNN 1980 ○ Disney 1923 ○ FedEx 1973 ○ Fortune Magazine 1930 ○ General Electric 1890 ○ General Motors 1908 ○ Hewlett-Packard 1939 ○ Hyatt (Hotels) 1957 ○ IBM 1890

○ IHOP (Restaurants) 1958 ○ The Jim Henson Company

1958 ○ LexisNexis 1973 ○ Microsoft 1975 ○ MTV 1981 ○ Revlon Cosmetics 1932 ○ Sports Illustrated

magazine 1954 ○ Trader Joe’s 1958

● The point is that your business can make it through hard times. You’ll need to get creative. You’ll have to take decisive action. And you’ll need to make tough decisions. However, you can choose to do it!

Manage Your Mindset

● If your business is struggling, it’s essential to manage your mindset. When things get tough, it’s easy to enter a downward mental spiral.

● As you work to stabilize and turn around your business, it’s important to maintain a positive mindset. A positive mindset also means that you are resolved not to give up.

● Almost every great business leader has endured struggles similar to yours. They are successful because they persevered and were resilient. If you want your business to succeed, you need mental toughness.

● Follow these steps to overcome a negative mindset:

○ Pay attention. You need to be able to identify unhelpful mental patterns as they occur.

○ Question. As negative thoughts arise, question them. Is what you’re thinking right?

○ Silence. Avoid allowing the same thoughts to keep stealing your mental energy.

○ Replace. As you shut down your inner critic, fill the silence with positive, helpful dialogue.

● As you push through problems and challenges, remember why you got into business in the first place. Seek to tap into the emotions and desires that initially drove you to create your business.

Clarify the Problem ● Before you can identify a solution, first clarify the challenge. Take some

time to think about how you got to where you currently are. What happened that you didn’t anticipate? Some common problems businesses face are:

○ Market changes ○ Failure to understand the target customer or market ○ Poor pricing strategy ○ Insufficient funds ○ Too much growth

● If you want your business to thrive during challenging times, you must be

able to put your finger on the primary challenges. If you’re feeling sick and go to the doctor, what’s the first thing they try to do? Determine what is causing the illness. The same principle is true in business.

Focus on Your Customers

● What is at the heart of every business, including yours? Customers. If you don’t have customers, you don’t have a business. When deciding what actions to take to strengthen your business, always keep your customers front and center.

● Before making changes, consider how they will affect the customer experience. If customer experience is one of your key competitive advantages, be especially careful about changes.

● If you do make changes that will directly affect the customer, communicate those clearly. Explain to the customer why you have to make the changes and the outcomes you expect.

● During times of global crisis, it’s especially important to keep the focus on

customers. People will remember the actions you take. If you seek to serve your customers, even at the expense of profit, you’ll build up a considerable amount of goodwill.

Conduct a SWOT Analysis

● If you want to succeed as a small business owner, you must be willing to

honestly evaluate how things are going. A SWOT (strengths, weaknesses, opportunities, threats) analysis provides you with a framework for analyzing your business.

○ Strengths. These are the things you have control over and are working well in your business. Focus on, and try to develop these areas further.

○ Weaknesses. These are the things that aren’t working well in your business. Your goal is to change or eliminate these things so that they don’t continue to damage your business.

○ Opportunities. These are external factors that have the potential to benefit your business. The more you can capitalize on these opportunities, the more success you’ll have.

○ Threats. These are external factors that could possibly hurt your business. Avoid these things or adapt to them.

● Performing a SWOT analysis requires honest, truthful work from you. But

this clear-headed analysis will help you overcome your weaknesses, capitalize on your strengths, and take advantage of unique opportunities.

Create Objectives and a Plan ● Once you’ve done a SWOT analysis, determine the objectives you’ll pursue

and create a plan for achieving those objectives. This will give you the clarity you need to move forward.

● Start with your strengths. How will you double down on the things you’re already doing well? Then look at your weaknesses. How can you change, minimize, or even eliminate these areas?

● Move on to opportunities. Is there a new market you can move into? Can you implement a new technology that will help you be more efficient?

● Finish with threats. How will you avoid or adapt to those things that could hurt your business?

● Remember to create both objectives and a plan for how you’ll meet those objectives. Your objectives need to be:

○ Measurable. You must be able to determine whether you’ve hit your objective.

○ Achievable. Be realistic in your goal setting.

○ Timely. Set a specific date by which you’ll meet your objectives.

Work with Your Tribe • In WIBO our participants use peer to peer learning to work on how they

grow a successful business. Our participants share their responses to their homework. They receive feedback from the other participants allowing each participant to see their business ideas through other people's eyes.

• When more than one person looks at a situation, you get the benefit of discovering new ways to solve problems and develop new strategies. Some business owners develop or join Mastermind groups where they collectively work together to grow their businesses.

• Through a mastermind group process, first, you create a goal, then design a plan to achieve it. The group helps you with creative ideas and wise decision-making. Then, as you begin to implement your plan, you bring both success stories and problems to the group. Success stories are applauded (loudly!), and problem is solved through peer brainstorming and collective, creative thinking.

• The group requires commitment, confidentiality, willingness to both give and receive advice and ideas, and support each other with total honesty, respect, and compassion. Mastermind group members act as catalysts for growth, devil’s advocates, and supportive colleagues. This is the essence and value of mastermind groups.

Reduce Costs

● If you want your business to survive and thrive during difficult times, you may need to reduce your costs. However, be careful and precise as you do this. Cut costs too much, and your business may have a hard time recovering. Cut costs too little, and you won’t free up enough cash to keep your business going.

● Start by cutting discretionary costs. These are costs that aren’t necessary to run your business. Business lunches are a good example of a discretionary cost. Next, look at ways you can reduce costs but still achieve the same outcomes. Can you reduce travel costs by using videoconferencing technology?

● Next, consider your office space costs. Your landlord may be willing to lower your rent or even create a new lease for you. If your landlord won’t reduce your rent, consider moving to a less expensive building.

● Also, take a close look at your supply chain. Some of your suppliers may be willing to give you discounts.

● At some point, you’ll need to think about reducing staffing costs. This is hard for every business owner. Before you lay people off, look for ways you can reduce employee hours or compensation. If a reduction in hours or compensation isn’t enough, you’ll have to reduce your workforce.

Manage Your Cash Flow

● Each month you have cash coming into your business and cash going out of your business. Not having enough incoming cash is one of the biggest reasons small businesses go under.

● This means you need to pay very close attention to your cash flow. If you have negative cash flow, you’ll need to make up the difference in the next month. A quick way to evaluate your cash flow:

○ At the end of the month, add up your total sales. ○ Total all purchases that you still must pay for. ○ Calculate the difference.

● If you find yourself struggling with cash flow, you do have some options:

○ You can sell assets to bring in additional cash. ○ You can apply for a working capital line of credit.

● As much as possible, stay abreast of your cash flow. Send out invoices in a

timely fashion and follow up with customers who fall behind on payments. Pay your own bills on time and try to plan accordingly for purchases.

Meet with An Accountant

● As you work to stabilize and strengthen your business, you would be wise to meet with a certified accountant. They can help you implement money-saving tax strategies. There are several specific actions you can take to reduce your tax burden.

● An accountant may be able to help you secure financial assistance from the local, state, or federal government. Because small businesses are good for the economy, many government agencies are willing to provide financial aid for struggling businesses.

● Finally, an accountant can help you think through critical financial decisions. Many business owners struggle to absorb all the financial details about their company. An accountant can crunch all the numbers for you and then provide you with relatively easy-to-digest reports.

Use Low-Cost Marketing

● Marketing is a double-edged sword. It costs money to get your company name out there, and the money you spend on marketing can’t be spent on essential things like payroll and bills. On the other hand, if you stop doing marketing, you connect with fewer customers, which also decreases available funds. ● So, what should you do when your business is struggling? Use low-cost marketing to cut your budget and increase your efforts simultaneously. Traditional advertising methods such as television, radio, and billboards may be too costly for the Return on Investment (R.O.I.). Other,

less expensive techniques can be just as effective.

● For example:

○ Regularly ask your existing clients for referrals. ○ Create Lead Generating content. ○ Give back to your community and generate PR around it. ○ Join local business networking groups. ○ Write guest blog posts for websites in your industry. ○ Appear on podcasts. ○ Sponsor local events (charitable, sporting). ○ Host events or classes (locally or online).

Be Persistent, Be Creative, and Pivot

● Successful businesses persist through challenging times and come up with creative solutions to difficult challenges. Sometimes they even pivot to a completely different business model.

● Polaroid is an example of a company that didn’t approach problems with persistence or creativity. As digital photography began to take over in the late ’90s, Polaroid executives continued to insist that people wanted hard copy photos. As a result, they were forced to file for bankruptcy in 2001.

● Yelp, on the other hand, used creativity and persistence to overcome

difficulties. The service started as a platform for getting recommendations from friends, but they couldn’t seem to get much traction. They pivoted to focus on making it easy to write business reviews, and the rest is history.

● Even in the worst circumstances, there are still options. During the COVID-19 pandemic of 2020, companies pivoted in significant ways:

○ Anheuser-Busch began manufacturing hand sanitizer. ○ Hanes started producing medical masks.

○ Lyft used its vast fleet of cars to deliver medical supplies.

● How can you pivot in your business so you stay afloat and meet the demand of your clients? There are numerous ways you can pivot your business:

○ Utilize new sales channels. ○ Segment your customers. ○ Focus on a feature. ○ Change your revenue model. ○ Change your pricing and positioning. ○ Adopt new technology.

● The reality is that every business face challenges. These difficulties don’t

need to sink your business. Don’t give up. Persistence produces success.

I hope this guide sparks some ideas that will help you with your business. WIBO workshops have been working for more than 50 years, and our successful graduates are proof that #WIBOWORKS. WIBO’s “How to Build a Growing Profitable Business” has been conducted at 29 locations in 8 states, including workshops for Native Americans in South Dakota, Wyoming, New Mexico, and Arizona. Learn more about WIBO at https://wibo.works We are currently accepting applications for our online cohort at https://wibo.works/wow/ Our flagship 16-week program, “How to Build a Growing Profitable Business,” starts in the Spring and Fall. More information at https://wibo.works/how-wibo-works/ If you think the WIBO program is an excellent fit for your organization, we invite you to review our WIBO Affiliate Partner Program at https://wibo.works/affiliate-program/ You can request a copy of our Affiliate Partner Program Overview document on the webpage. Here are our current affiliate partners where you can take the WIBO flagship program, “How to Build a Growing Profitable Business.”

Atlanta Ga – https://wiboatl.org Bridgeport Ct – https://wibobridgeport.org Shreveport La. – https://wiboshreveport.org St. Louis Mo – https://www.gracehillwbc.org/what-we-do/wibo-classes/ Waco Tx – https://wibowaco.org

We have WIBO graduates who have been in business for more than 25 years. #WIBOWORKS