Life After COVID-19: Focus on Financial Stability and Preparedness
I hope this finds you well. First, as a reminder, Isaiah Industries will be closed on Friday, July 3 to allow our families extra time together for the Fourth of July holiday.
Now, in this issue of the Executive Report, we will continue to look at strategies to help home improvement contractors “jive and thrive” in the wake of COVID-19. In particular, we want to share some important strategies that will help you maintain or improve your financial situation.
- Preserve Your Cash. As your state begins to open up and you receive a lot of pent-up interest and business from homeowners, you may be deceived into a false sense of security. You may feel also feel secure because you received PPP funding, but the government can’t extend that favor forever. The re-opening of states and business is not seamless, and as I write this, several states are scaling back their re-openings and increasing PPE requirements. Be prepared for this by preserving your cash for the potential next rounds of closures and virus-related declines in consumer interest. Do all you can to operate lean and avoid large expenditures.
- Focus on Your Banking Relationship. You may find yourself in need of capital in the coming months or years. Now is the time to cultivate your banking relationship and demonstrate your ability to meet your current and future obligations. Improving your relationship with your bank is a wise investment in your financial future.
- Seek New Profit Points. In particular, look for additional products or services that you can offer to your past customers. Those individuals know and trust you and while people are careful to avoid the COVID virus, they will be more likely to do business with those they already know. Selling to people you’ve already sold to before is much easier than finding new customers.
- Reach Out to Past Customers for Referrals. Once again, look for ways to connect with past customers who already trust you. Referrals can be great business prospects during these times. People like to hear the opinion of people they trust, so make a good impression to turn your customers into ambassadors for your brand. Reach out to your past customers and let them know how important their referrals are.
- Continue to Adopt Technology. The recent shutdown has forced most businesses to adopt new technology. While things are opening back up, continue to get your company up to speed. Don’t write new technology off after business resumes, instead learn from it to improve your operations. There will likely be future shutdowns so preparing now will make life easier later on! Invest in training your team in new technology that can stick around to make your lives better.
- Analyze your Reactions. In the recent shutdown, what did your company do well and what could you have done better? Many companies struggled with things like working from home or upping their social media game to better engage customers. Some companies took advantage of the changes and remained relevant. Find a few things that your company could improve on and focus on them. Expand on the things you did well to reach even more people. Take stock of your company’s reaction to the crisis and find ways to move forward.
- Strengthen Your Supply Chain. The current lumber shortage is just one example of supply chain interruptions caused by COVID-19. Use this time to build and strengthen your supplier relationships to minimize the impact of future shortages. Just like this time has been challenging for you, it has been challenging for your suppliers. Be patient with them as everyone starts back up. Continuing a great relationship with your suppliers in this difficult time will be much appreciated later.
- Re-Think Your Marketing Strategy. Bring messages of assurance and hope to your customers and prospects. Let them know what your company is doing to protect them as well as your team during uncertain times. Changing your marketing to promote a positive outlook will increase your customer’s confidence in your company and its abilities. Using the crisis to bring a positive message encourages your customer and improves your brand’s image.
Consider that consumers are always wary of the financial stability of their contractors. By taking these tips to heart and operating from a position of strength you will maintain the confidence of your customers and prospects.
Again, I hope that you are doing well. Please know that we here at Isaiah Industries and the Executive Report are committed to doing whatever we can to ensure your ongoing success. Please feel free to contact me anytime. I’d love to discuss the challenges your company is facing during the COVID-19 pandemic and see what ideas we can come up with to overcome them.
In the meanwhile, keep planning for the future – it will be here sooner than you think!
Todd Miller has spent his entire career in the metal building products manufacturing industry. He is president of Isaiah Industries, an organization recognized as one of the world’s leading metal roofing manufacturers. Todd is currently Vice President of the MRA (Metal Roofing Association) and a Past Chair of MCA (Metal Construction Association). Through his website, he strives to raise the bar on standards and practices to provide property owners with the best possible products for successful roofing projects.
You may pull quotes from this article provided you include a link back to the original article on this site. You may not reprint this full article, or even a significant amount of the article, without explicit permission. To gain permission, click here.