Tips for small businesses to survive COVID-19 from Jairek Robbins, a CEO who set up his now-booming coaching company during the 2008 financial crisis

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Jairek Robbins is an entrepreneur, performance coach and motivational speaker who has worked with Century 21, Toyota, and Harvard University, among others.
He is author of the 2014 book “Live It!: Achieve Success by Living with Purpose,” and founder of the coaching firm Jairek Robbins Companies, which aims to help business owners to succeed in work and life.
He set up the company amid the financial crisis of the late 2000s.
In an interview with John Lee Dumas on the podcast “Entrepreneurs on Fire”, Robbins outlined three core principles for keeping your business afloat during a crisis: weeding out unnecessary expenses; reviewing finances frequently; and prioritizing profits above all else.

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Jairek Robbins knows a lot about running a small business during a crisis. In 2009, as financial markets crashed, he set up his own company, Jairek Robbins Companies — now, the business coaching firm advises companies, including Toyota and Century 21, in more than 110 countries. 

Around 70% of small business owners in the US fail within their first ten years, according to data from the Bureau of Labor Statistics. Coronavirus makes things even harder: In the US, 69% of small businesses that received government funding are worried their operating cash will run out this month, according to a survey of more than 7,000 small businesses by Alignable, a social media network for business owners.

In the UK, one in ten UK small businesses have closed down during the coronavirus, and a third believed the pandemic had been “very damaging”, a study conducted by the market research company 3Gem suggests

Robbins is the author of the 2014 book “Live It!: Achieve Success by Living with Purpose,” and last week, he appeared on John Lee Dumas’ “Entrepreneurs on Fire” podcast to recommend three ways for keeping your business afloat: first, weeding out unnecessary expenses; second, reviewing finances at least every other day, but ideally daily; and third, prioritizing profits above all else, something he said too few businesses do.

Cut the deadweight — using a highlighter

The most important part of running a small business, especially during a crisis, is protecting any areas that are vulnerable — owners should keep a particularly close eye on operating cash, Robbins said.

He suggested cutting “deadweight” expenses to “shed away anything that’s not working that might be sinking the ship … to turn it to a rocket ship.”

A simple but effective exercise to carve out unnecessary expenses, he said, is to print out your profit and loss statement, expenses, line items and credit card receipts. Highlight in green anything you absolutely have to pay, in yellow what you can do without, especially in times of crisis or if certain goals aren’t met, and in red anything that shouldn’t be there.

Robbins said that with this exercise, a London-based law firm he was working for highlighted $50,000 in red, and saved $600,000 over a year. 

More… Emergency coronavirus loans for small businesses are ending with $134 billion leftover — and there’s little …read more

Source:: Business Insider

      

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