In less than two weeks, the coronavirus crisis has wreaked unprecedented havoc on the economy. In promo, after a record 2019 and healthy start to 2020, companies’ sales have effectively ceased, forcing management to make difficult business decisions like furloughs and layoffs.

While the panic may be paralysis-inducing, it’s important to slow the hemorrhaging. “Trying times such as these separate companies,” says Jeffry Meyer, CEO of ASI affiliate Certified Marketing Consultants. “There are those that have intentionally implemented strategies to build solid foundations, and those whose focus was on short-term sales.”

Times are scary, and the bad news is overwhelming. But business owners need to give their companies a fighting chance of survival. “You have to act early and quickly,” says Dr. Bill Putsis, professor of marketing, economics and business strategy at University of North Carolina-Chapel Hill. “You’ll be able to thrive and help people when we come out of this, and we will.”

Here’s where to focus so you’re prepared for the weeks and months to come.

Get a handle on your cash.
Control cash flow by running as lean as possible, says entrepreneur Liz Elting, former co-CEO of TransPerfect, a language translation business solution. Cut perks for employees, eliminate non-critical recurring costs (even small ones) and negotiate when possible.

“Discuss options with your landlord for rent,” she says. “You may be able to negotiate reduced or waived rent or delay payments until after things pick back up. Consider the same for utilities and equipment rentals.”

During a webinar with ASI president and CEO Tim Andrews on March 25, Jo Gilley, CEO of Top 40 distributor Overture Promotions (asi/288473), said that landlords should be willing to work with you on rent relief: “They’d rather the payments be delayed than you go out of business.”

If owners have managed their companies well, they should be able to get their ducks in a row for the moment, says Meyer. “Assuming receivables are in excess of accounts payable, there’s short-term cash flow that will cover the amounts owed to suppliers, which is absolutely necessary,” he says. “If suppliers aren’t paid, it’ll be very difficult to recover when the economy rebounds.”

Because certainties are few and far between, owners should be looking at how to stay in business for the next few months. “Do what you can to make sure you’re in business on Sept. 1 with no revenue between now and then,” says Putsis, who’s also a faculty fellow for executive programs at Yale, president and CEO of strategy firm Chestnut Hill Associates and author of The Carrot and the Stick: Leveraging Strategic Control for Growth. “Take actions now to ensure it. Hope is not a strategy.”

Re-evaluate your team.
Your priority must be saving the company, said Craig Nadel, president and CEO of Top 40 distributor Jack Nadel International (asi/279600) in Los Angeles, during the webinar. “Everything is dependent on that. Furlough people if you can, especially with the aid available. Make personal sacrifices to make sure your key people are happy employees going forward.” Jo-An Lantz, president and CEO of Top 40 distributor Geiger (asi/202900), agreed with Nadel that company leaders will have to “lean in and take the hit first.”

Try to build in gradual cuts instead of mass layoffs. If you let go of your team and then want to welcome them back when things improve, there’s a good chance they’ll already have moved on. “Find a way to stagger it,” he says. “Maybe payroll is cut by 25% across the board. Furlough first, then lay off if it goes from mild to really bad.”

Consider issuing pay cuts for the highest-paid employees and implementing performance-based compensation plans, says Elting. Some salaried workers may have to transition to freelance work. “It will increase everyone’s economic uncertainty, but we’re talking about triage here,” she says. “Exhaust all of your options, because losing talent should be a last resort. But remember that no one benefits if you don’t survive this.”

Fortunately, said Lantz during the webinar, those with sales skills always survive. “They might be wearing a different hat and brand at the end of this,” she said. “But they’ll still be there.”

Look for business aid.
Financial organizations and government entities are gearing up to provide resources for hard-hit businesses. Stay informed of what’s available for you as a business owner for things like rent relief, low-interest loans and grants, says Elting.

The stimulus the U.S. government just passed is meant to give businesses a cushion for the next three months, said Gilley. But don’t stop there. “Use every piece of aid you can, get educated and get in line for grants and loans, anything for small businesses,” she advised.

It’s well worth the time investment to understand how the stimulus can help bridge cash flow needs with grants, loans, payroll tax holidays and partial wage subsidies, says Meyer.

More than ever, ASI is committed to providing the #promotionalproducts industry with news-you-can-use to get through the crisis. Read our breakdown and #promo reactions to the $2 trillion coronavirus stimulus bill https://t.co/9HY2jmiZPz

— Timothy M. Andrews (@Tim_Andrews_ASI) March 26, 2020

Continue to serve clients.
This isn’t the time to sit back and wring your hands, says Elting. Brainstorm with your team about new ways to do business and strategize for now and long-term. “Adversity demands innovation,” she says. “You’re going to face problems most of us never considered before this. Implement feedback in real time, evolve to meet immediate client needs and develop offerings with long-term value.”

These unprecedented times are an opportunity to pivot and transform the business, says Putsis, as long as there’s a plan in place. While it’s a tough time to convert prospects since people are holding onto their cash, make sure you’re bolstering your existing client relationships, Elting adds. Offer to do work for them that’s normally by-request and more expensive. “They’ll never want to leave,” she says. “They’ll be your biggest fans and continue to work with you when the situation improves.”

Also host digital townhalls and webinars and ask for client feedback so you can serve them where they are. “Making sure they feel heard goes a long way toward continued loyalty,” says Elting. “If you can fill their immediate needs, your clients are far less likely to consider your services an area where cuts can be made to reduce costs.”

Reinforce relationships so you’re an integral part of the solution later. “Build loyalty so that you’ll be top of mind when they need help rebuilding their businesses,” says Meyer.

Remember: You’re not alone.
The disruption caused by mass cancellations and closures is a sucker-punch to virtually every business across the country. It’s a lot to absorb; don’t put pressure on yourself to make decisions on your own.

“You don’t have to solve this crisis all at once, and luckily, it’s not your responsibility to do it by yourself,” says Elting. “You’ve hired a team you trust and believe in. Now’s the time to lean on their collective experience, intelligence and wisdom to help make the right decisions.”

In a time like this, there’s no such thing as communicating too much, says Putsis. “Paint a vision, lay out the plan and assure them you’re sharing the pain,” he says. “Empathy goes a long way. It doesn’t pay the bills, but it shows we’re all in this together and there’s a light at the end of the tunnel.”

Knowing you can rely on your team to help you humanizes you and should give you the impetus to take action in critical areas. “Don’t say, ‘It’s so scary, I can’t even think about it right now,’ ” said Phil Koosed, CEO of Top 40 distributor BAMKO (asi/131431), during the webinar. “Because when [the crisis] comes knocking at your door, you’ll be caught flat-footed. The more you’re ahead of the curve, the better off you’ll be.”