Lessons for Crisis
5. There is some value in every business.
Even if on the surface the business appears to be losing money on many fronts, there is always something that can be made profitable. It’s all about creativity and facts. Even in dead and dying industries, there is always one last supplier of that product or service…and they seemingly exist for a very long time. If there is money coming in through the front doors, then there is still a way to generate a profit.
Task: Around every troubled business there are many people who will say, “The business is crap. Close it down.” And, often, the leadership responds with, “No, it’s not. It’s great.” The reality is it’s neither. There are parts of the business that are crap and parts that are great. You, as the leader, have to have the courage to gather your team, to find creative and productive ways to scale back the business, and start over. If you’re burning cash and being pulled under by multiple forces, you can’t hold on to everything at this point. Figure out what needs to go and cut it loose quickly.