We are currently witnessing a global economic crisis, and it seems we are heading for a global collapse. Businesses all around the world are either collapsing or fighting to survive. Some people, however, have figured out a way to thrive during this global collapse by successfully reinventing themselves.
The global collapse we are in right now stemmed from a global pandemic, and it’s forcing entrepreneurs and freelancers to re-strategize and reinvent their business model in order to survive.
The novel coronavirus is keeping many businesses closed, and keeping us at home. Stay-at-home orders have led to reduced consumer spending, and a dramatic shift in consumer needs. Millions of entrepreneurs and freelancers across the globe have been impacted by this economic downturn.
The global collapse we are experiencing is often referred to as the “stay-home economy” or the “coronavirus recession”.
Robert Glazer, founder and CEO of Acceleration Partners, recently stated, “The stay-home economy will drastically change the business world. However, companies who are smart and use this time as an opportunity to innovate will look back on this as a turning point for their businesses.”
According to Wikipedia, “The coronavirus recession, an effect of the Great Lockdown, or the Great Shutdown, is an ongoing severe global economic recession. This recession has been the steepest economic downturn since the Great Depression.”
Surviving a Global Collapse
Can you survive a global economic crisis as serious as this one? Absolutely. This crisis doesn’t necessarily mean you’ll go out of business. Many of you could actually experience a growth in business during a global crisis, if you know how to use the pandemic as an opportunity to reinvent yourself.
A crisis helps us remember what’s most important, and figure out what we’re made of. Kathleen Morris once said, “The Greek root of the word crisis is ‘to sift’, as in, to shake out the excesses and leave only what’s important. That’s what crises do. They shake things up until we are forced to hold on to only what matters most. The rest falls away.”
Remember that recessions are a normal part of our economic cycle, so you shouldn’t be reacting with fear or panic. Instead of panic, you should be reacting with a plan.Panic, anxiety and worry will hinder your ability to make intelligent business decisions. Stay calm, and come up with a plan to survive. Click To Tweet
To help you devise a plan to survive a global collapse, we’ve put together a survival guide for entrepreneurs and freelancers. Keep reading for some important tips on how to not only survive, but thrive.
Maintain a Strong and Positive Mindset
Understandably, many of you are anxious about the current state of the economy. But did you know that a strong and positive mindset is one of the most powerful tools you can possess to survive a crisis?
Panic, anxiety and worry are examples of mindsets that interfere with your ability to make intelligent business decisions. That’s why it’s so important to stay cool, calm and collected during a global collapse. This is the time for you to step up as a leader, and be an A-player.
We have to survive in order to thrive, so stay focused on survival. Think positively, and think of this crisis as an opportunity to reinvent your business plan and ultimately reach new heights. Believe that you can come up with a new plan that will put you in a better place than you were in before the pandemic.
Crunch the Numbers: Do You have Enough Cash?
Another thing you must do in order to survive a global collapse, is count, collect and conserve your cash.
In a crisis, having cash gives you staying power, and cash helps you get through the crisis still standing. You should therefore be looking at your cash balance every single day, and crunching numbers to ensure your survival.
Let’s say you’re an entrepreneur, and you own what used to be a thriving business, but you’ve seen a dramatic reduction in sales due to COVID-19.
You must spend some time crunching numbers, to assess whether or not you have enough cash to survive, and for how long.
Included in your calculations should be the money you have in the bank, and any funds you’re getting from the government in terms of financial assistance. If your area has an estimation of when business might get back to normal, calculate whether or not you can last that long with the amount of cash you have.
The purpose of crunching numbers is to find out if your business will still have a pulse once the pandemic is over. Will you be alright, or do you need to come up with a new plan?
Freelancers need to spend time crunching numbers, too. They need to calculate how much income they’re losing, so that they can figure what adjustments might need to be made. Freelancers earning less income won’t be hit as hard by this global collapse if they have a plan. Whether that’s pitching old clients with a new offer or re-negotiating contracts with current clients, be sure to have a plan in motion.
This is also a good time to make sure you collect on any unpaid invoices, if you’re crunching numbers and realize clients owe you money. Get paid while you still can.
Craft a Plan to Cut Costs
Another important component of your survival kit during this global pandemic is to craft a plan to cut costs.
For example, you can negotiate prices with vendors and contractors, because they may be offering a discounted rate due to the current financial crisis.
You can also terminate contracts with any expensive contractors or staff members who you don’t currently need. Shut down all projects that require a lot of cash.
If you’re an entrepreneur or business owner, take a close look at your current staff, your team, and your pool of talent. You probably can’t afford to keep all of these people. Perhaps you’ve already let some people go, and now you’re realizing you may have to let even more people go. Decide on a case-by-case basis who is worth retaining, and who can be let go.
When it comes to your business, where else can you cut costs? Clint Coons, Small Business Expert and Founder of Anderson Business Advisors, explains that knowing where to cut costs can make all the difference: “In times of crisis, cutting costs is a no-brainer, but what is not so intuitive is determining the right costs to cut. Reach out to your clientele on social media, conduct polls, or read your Yelp reviews. Get to know what’s most important to your clientele, then look for ways to build on it, while cutting what’s not as important to them. It’s about still delivering on what is important to your client, and cutting that what is not.”
In general, it’s crucial to suspend all non-essential expenditures. Focus on stability and let go of the luxuries, while also cutting frills that your customers don’t care about.
Entrepreneurs and Freelancers Must Be Self-Motivated While Working From Home
Self-motivation is one of those ‘habits of millionaires’ that we cannot stress the importance of enough. The more self-motivated you are, the more fuel you’ll have to ensure you get through this crisis.
You can motivate yourself by using time blocks on your calendar, writing down your goals and placing them somewhere visible, and creating a rewards system for yourself. Check out this article on how to motivate yourself for more tips on being self-motivated during difficult times.
Skill Stacking: Learn New Skills That Will Help You Survive
Earlier, we discussed the importance of cutting costs during a global collapse if you’re an entrepreneur. Since part of cutting costs is letting go of talented staff, have you thought about learning their skills yourself, and doing their job yourself after you let them go?
Learning new skills, often referred to as ‘skill stacking’, is a great way to save money as an entrepreneur. The more skills you acquire, the more you can handle on your own, and the less money you have to spend on talent. You can easily learn the skills needed to survive by watching online training videos, or by taking online courses.
Freelancers should be upgrading their skills as well, especially if they want to thrive as a freelancer during a global crisis. Freelance writers, for example, should upgrade their skills because certain types of writing are considered high-income skills. For example, general blog writing is a form of freelance writing, but freelance copywriting and SEO content writing are high-income skills.
As a freelancer, if you learn how to write for SEO, you can charge more money since your articles will now rank better on search engines. Similarly, if you are a freelance writer and you learn copywriting, those additional copywriting skills could take your freelancing career to the next level? Why? Because copywriting is a high-income skill, and many copywriters make over $10,000 per month.
What other skills could you learn that are still in high demand during this pandemic? This leads us to our next tip, which is the importance of developing recession-proof skills.
Learn Recession-Proof Skills
Freelancers trying to survive a global collapse also need to develop more recession-proof skills. Which skills are in high demand, even during a global economic crisis? Some recession proof skills include social media marketing, closing, graphic design, website development and copywriting.
Many businesses are currently shifting to online operations, and are seeking freelance graphic designers, freelance website copywriters, website developers and social media marketers to help them complete this transition.
Furthermore, skills such as copywriting and social media marketing are recession-proof skills because freelancers with these skills are always in demand. Online businesses need freelancers who possess these skills in order to ensure their business survives the global pandemic. As a freelancer, if you learn some of these recession-proof skills, as well as some of the high-income skills we discussed in the previous section, you’ll have a much better chance of thriving during a global crisis.
Develop Productivity Habits
Entrepreneurs need to master productivity habits in order to survive the global collapse. Why? Because chances are, you’ll now be doing the work of two, three, four or even five people. You’ve had to lay off or let go of some team members in order to cut costs, and you likely have to do their job yourself, now, to keep the business running smoothly.
Freelancers need to develop productivity habits in times of crisis too, because they need to hustle to find more clients so they don’t go broke. Many freelancers who have lost clients due to COVID-19 can make up for the loss by being productive and pitching lots of new prospects.
If you’re wondering how to develop better productivity habits, check out these peak performance secrets and shift your mindset to productivity-mode.
Shift to Online Operations
Your greatest chance at survival is a successful online business. Your business model might be one that can be quite easily shifted to online operations. Yes, you may have to get creative, here, but you can do it.
In fact, the digitization of your business should be one of your top priorities right now.
For the best chance of thriving during a global collapse, you need to digitize, systematize and virtualize your products and services.
What could you digitize? Do you have a physical product that meets the needs of your consumer, but it’s expensive to manufacture and ship? Can you digitize a similar product through technology, that would meet the consumer’s needs in a similar manner?
Entrepreneurs who can reinvent their business through digitization will be in a great position to survive this economic crisis. Digitization not only reduces delivery and manufacturing costs, but it also allows you to reach a wider market. You can sell to more people if your product is a digital product.
Similarly, digitizing your services should be simple if you offer consulting or coaching services. Virtual consulting meetings can easily take place via Zoom, Skype, and other video calling apps.
Did you used to make a lot of sales after speaking at a live event? Simply virtualize your events. Conduct virtual seminars, virtual workshops, etc. You will still make sales after these virtual events, where you position yourself as an expert and speak on an important subject. The benefit of virtual events is that you can reach more people, all across the globe.
You may need to invest some funds into your shift to online operations, but it will pay off. You have already cut costs, so you should have some funds available to hire website copywriters, webinar assistants, and website developers.
Automate Some of Your Services
When it comes to reinventing your business model or re-strategizing in order to survive an economic crisis, automation is key. Can you systematize your procedures in a way that allows some services to be automated?
For example, some entrepreneurs might consider letting go of their customer service staff and instead using chatbots to answer customer inquiries. Chatbots are essentially chat robots, programmed with customized information that enables them to answer customer inquiries immediately.
Not only are chatbots an extremely cost-efficient way of handling customer service, but your customers will also enjoy not having to wait for an answer when they ask about your product or service. Chatbots can therefore lead to increased sales and revenue.
In general, reduce human elements wherever you can, because you can save a lot of money if you use software or technology to automate.
Strategic decision making is crucial when it comes to surviving a global economic crisis. Deciding which services can be automated is one of those strategic decisions that will pay off.
Adopt the Consumer’s Perspective
To survive a crisis like this one, you’ll have to put yourself in the consumer’s shoes. It’s clear that consumer needs have now changed. Ask yourself, What do people need right now?
If, for example, you can sell a product online that happens to be the type of product that makes stay-at-home life easier for the consumer, that’s a fantastic opportunity to innovate.
Since many people are now working remotely, you could target today’s consumer who is not accustomed to working from home. Perhaps your new business model involves selling ergonomic products for those needing a comfortable home office. This could include products such as monitor-raising devices, ergonomic keyboards, or even a virtual workshop on how to maintain correct posture while working from home.
That’s just one example, but the key is to adopt the consumer’s perspective and think about what people need right now. Fulfill a demand in the marketplace. Don’t reinvent your business model without first walking a mile in the consumer’s shoes.
Marketing 101: Create an Irresistible Offer
It goes without saying that you need to implement some clever marketing strategies in order to survive a global collapse like the coronavirus recession. Creating an irresistible offer is a marketing strategy that could skyrocket your business, even during a pandemic.
What makes an offer irresistible? It’s a combination of its relevance to current consumer needs, its price, and its guarantee. The marketing copy should contain emotional trigger words, since it’s common knowledge that emotion drives people’s purchasing decisions. You want your offer to fulfill a need and hit your target audience’s pain points.
But what do you do after you’ve created an irresistible offer? Who should you sell it to? It’s always a good idea to find new customers, but sometimes, cashflow comes even more easily if you sell to existing customers.
Sell to Existing Customers
How can entrepreneurs and freelancers add value for their existing customers, making them want to re-purchase the product or service? During a global collapse, you’ll want to focus your attention on selling to previous customers or existing customers. Be sure to target them in your marketing efforts for more immediate revenue compared to targeting new customers.
In other words, you want to re-energize, reactivate and retain your clients. How can you retain your existing customers? Can you give them additional value? Should you be asking them what you could do to help them? Would you consider reducing your rates a little bit? You should be considering all of these things.
Past customers who have bought from you before might be willing to do business with you again. You never know. All you have to do is pick up the phone and call them. Use your closing skills. Convincing some previous customers to do business with you again is a clever strategy for surviving a global financial crisis.
Master the Art of Closing
It’s a no-brainer that you need sales to survive this global collapse, and if your business is suffering, you’ll need to improve your sales skills. Why? Because you have to close more deals if you want to survive this pandemic.
You can utilize online resources such as training videos, for example, to train yourself to be a better closer and a better salesperson in general. The reason why now is a good time to master the art of closing, is because this global collapse has made closing the deal more challenging. The good news, however, is that with improved sales skills, you can still make sales and survive.
Freelancers need closing skills, too, since they need to convince prospects to buy their freelance services. This crisis is the perfect opportunity to improve your closing skills.
The Most Important Tools in Your Survival Kit
By now, you’ve become aware of some important tools you’ll need to survive this economic collapse. You’ll need closing skills, social media skills, productivity skills, copywriting skills, and much more.
If you don’t currently possess all of these skills needed to survive a recession, don’t worry, because you can always find training videos online to teach yourself.
However, if it seems like you need too much training to keep track of, you might want to check out Dan Lok’s Ultimate Training Collection. It’s a collection of 14 different training videos from Dan Lok, and it’s your ultimate coronavirus survival kit. This collection will help you keep your business alive.
The Ultimate Training Collection includes social media secrets, copywriting secrets, millionaire money habits, millionaire productivity habits, closing secrets and much more.
After watching Dan Lok’s training videos, you’ll become armed with the tools needed to thrive during a serious global economic crisis. Click here to get Dan Lok’s Ultimate Training Collection.