Sitting here confined to quarters and contemplating the slowdown in business over the past weeks, I’m taking the time to talk to my customers, especially those in the manufacturing sector, in order to inquire about their situation.

You are stressed about getting back to business, worried about the future and even the very survival of your business. As our former minister Clément Gignac said so well, we must avoid sending our economy to intensive care. But I see when talking to you, SMB owners, that we are heading towards intensive care, not under observation, but on respirators!

This situation is beyond our control and we are all in a state of shock similar to a great personal ordeal such as the death of a loved one or a car accident, which I’ve personally experienced.

So, how do we deal with this situation?

We must act now! Do not wait, take control of your business and organize yourselves accordingly to avoid the closure of your businesses and be ready for the return to business. This recovery will be slow, certainly between 16 and 24 months, and for those who survive it, the business opportunities will be immense.

As an entrepreneur myself, I am currently working on my reorganization plan because I do not want to panic and I want to continue to fight for our SMBs.

My nearly 50 years experience as a turnaround specialist gives me the necessary perspective to suggest you do the following without delay:

• Make the maximum cuts necessary for each sector of activity while maintaining a core team you can count on during the recovery;
• Based on your discussions with your customers, estimate how much your sales will decrease for the next twelve months from the date of the reopening of businesses permitted by our government. Example: set a hypothetical date for June, July or August (you can always readjust if necessary)
• Determine your monthly losses during the closing period;
• Make the maximum cuts necessary for each sector of activity while maintaining a core team you can count on during the recovery;
• Immediately notify your banker, your suppliers, your lenders, your real estate and equipment lessors of your actions and negotiate terms according to your new budget;
• Make the maximum cuts necessary for each sector of activity while maintaining a core team you can count on during the recovery;
• Determine your monthly deficits and your breakeven point;
• Present your reorganization plan to your financial institution, renegotiate everything and prepare your applications for government grants;
• If you do not have the expertise for this kind of situation, get help, the situation is too serious. In addition, there are support grant programs for which CMG International is eligible. Contact us. We can help you!

In short, take the bull by the horns! Face the situation. Be realistic. Be upstream, not downstream! I am convinced that if you act now, your future will be get through this. 

Richard Rousseau MBA

Founder | CMG International Inc.