Episode 188: Things To Consider Before You Close Your Business (Temporarily)

Lately, I've been having A LOT of conversations with pet business owners about whether or not they should close their businesses during the COVID-19 pandemic. I want to be clear - I am NOT advocating that you should close your business temporarily or permanently one way or the other. My purpose here to provide all of the different angles you should consider in order to make the best choice for you, your business, your staff, and your clients. At the end of the day, every business is different. We all have unique situations, circumstances, and experiences that make us all different in our own ways. It is not our place to judge someone else's business and tell them they need to close or not close. We are all in this together, and we need to support each other now more than ever. Show Highlights [2:25] - Consider your area. Different parts of the country (and the world) are undergoing different levels of isolation and social distancing. Check with your local governments for guidance as to how your business operations fit into the current climate. Pay extra special attention if your local area has a "shelter-in-place" directive. [5:00] - Consider the effect on your staff. There are a few different options businesses have in regards to dealing with staff. You can furlough them, lay them off, or continue business as usual. As with everything, there are pros and cons to each route. [6:45] - Consider the type of messaging coming from your business. Internal and external messaging is critical. The worst thing you can do as a business right now is not to stand up as a thought leader. Keep your audience informed and keep it honest. And please, do not say you are closing up shop without making it clear that it's a temporary closure. [10:00] - If you have to close your business during COVID... do not give up. This is the time to feed your mind so that when the world goes back to normal, we can come back bigger and better than ever. Links Pet Industry COVID-19 Survival Group: jumpconsulting.net/survival Are You New Here? Welcome, I am so glad you are here. If you are a dog walker, dog sitter, cat sitter, doggy daycare or kennel owner, then you found the right place. Jump Consulting is the one place on the internet to get all the resources you need for your pet care business. Can I give you some freebies to generate sales and increase revenues for your business? Grab your freebies below. Are you starting out? Been in business for less than two years? Get your startup resources here. Do you own an established pet care business and you want to take it to the next level.? Get Your builder resources here. Transcript: This is episode 188 of Bella in Your Business. Hi there, I'm Bella Vasta from Jump Consulting. You might know me from CBS, NBC, Fox, Huffington Post, Entrepreneur, or maybe you've seen me speak on stage or read my book, The Four Dogs That Every Business Owner Needs. In any case, get ready because you're about to get your hashtag Bella Butt Kickin' in this next episode of Bella in Your Business. So what do you say? Let's get ready and jump. I want to talk to you about some things that I think you should consider before temporarily closing your business. Now, I want to be really clear here. I am not encouraging you to close your business. I'm not encouraging you not to close your business. I've just been having so many conversations with people all this week, both on the phone and in Messenger, and I really want to share some really good information. Stay tuned, because I’ll be giving you a link to a group—it’s jumpconsulting.net/survival—where you can get more information like this from financial experts, lawyers, HR consultants, systems people, and more. If you haven’t joined that group already, please do. You can help me share this too—it’s going to be a very important one. I really want to make sure everybody can see this, hear this, and tune in. We're going to talk a lot about what we need to consider, and I’ve got four things here: your area, your staff, your messaging, and closure. Your area—everybody is different, so I don’t want any shaming or judgment toward anyone who says they need to close or stay open. I’m starting to see a lot of caddiness online, and that’s not our duty. Stop it right now, because it’s not your business, your livelihood, or your place to judge. Some areas, like the Northeast, Chicago, Silicon Valley, and Seattle, are being hit hard. They’re not going to be the same as smaller, less dense areas in the middle of the country. Be careful about making judgment calls because everyone’s circumstances are different. Also consider whether there’s a shelter-in-place order in your city. Shelter-in-place means staying home except for essential needs—pharmacy, grocery, hardware, or medical. If you have a shelter-in-place order, it changes the whole situation for your business. A few weeks ago in the mastermind, we asked our HR consultant if someone who contracted COVID-19 while working as a pet sitter or dog walker would be covered under workers’ compensation. At the time, the answer was no, but that’s changing. If your area has a shelter order and you still require staff to work, it could become a workman’s comp claim—which could mean long-term disability if someone’s lung capacity is diminished. We never want anyone in that position. There are alternatives, and this might become a strategic move for you. That leads into the next point: your staff. There are three main things you can do with your staff—furlough, layoff, or nothing (meaning find another temporary arrangement). Furlough means they stay on your books but aren’t working. They can’t collect unemployment, but they retain eligibility for PTO or benefits. You also have to keep paying into those benefits. That might work for some companies but not others. The second option is a layoff, which means they go to the unemployment office and receive about 60% of their paycheck. The third option, “nothing,” applies to companies that are very cash-positive and can afford to help staff through loans, partial salary, or bonuses. If you go this route, make sure they know it’s a loan. But remember, that’s also a gamble since we don’t know how long this will last. Next: messaging. No matter where you are in this process, you need to communicate with your community—both internal and external. The worst thing you can do as a leader right now is to go silent. Be honest about your situation. If you don’t know something, say you don’t know. But keep people informed. If you’re closing, say “temporarily closing.” Always use that word. Set expectations by saying when you’ll reevaluate, and let clients know what to expect next. There’s no shame in closing temporarily. Everyone’s situation is different, but we’re all in this together. These messages should go out by email to your clients and on social media. If you’re active on Facebook or Instagram, share updates there too—not just dog-walking photos. Talk about how this is affecting your business. This is the time to be a leader. Marketing doesn’t stop; in fact, it’s more important than ever. When the market rebounds, people will need your services again, and being visible now will matter. Now, about judgment. I’ve seen people criticize others for asking clients for help or choosing to close. Stop it. Everyone’s doing what they need to do to survive. Your job is to focus on your business and your community, not to judge others. If your area moves to a shelter order, you’ll need to have specific conversations with your lawyer to understand what this means legally and financially. You may need to make hard decisions about operations and staff. If you don’t have a team of professionals to advise you, the pop-up group at jumpconsulting.net/survival is a good place to start. It’s $29 for two weeks and includes access to experts in HR, law, and finance. Now, if you do have to close—my heart goes out to you. I know this business is your blood, sweat, and tears, because it’s mine too. But I want to encourage you: while you’re closed, don’t let your mind go mushy or your spirit get down. It’s okay to rest for a day, but then get back up and lead. Use this time to work on your SOPs, your onboarding process, and your marketing strategy for the rest of the year. Get ridiculously familiar with your numbers so you know exactly where you stand. Sharpen your sword—read, listen to experts, and learn new habits. Develop a morning routine. Sweat every day, even if it’s just 15 minutes. Organize your home, your garage, your finances—whatever gives you a sense of progress. Set daily goals so you still feel accomplished. That will help relieve stress and keep you grounded. I know many of you are hurting. I’ve talked to people struggling with depression, sobriety, and even suicidal thoughts. You are not alone. Reach out. Send messages to friends or colleagues just to check in. We need love, not judgment. Fact and faith, not fear. Closing isn’t failure. It can be an opportunity. I spoke to a business owner with 40 employees who shut down completely, and she’s using this time as a reset. When she reopens, she’ll hire differently, knowing exactly the kind of people she wants. There’s no shame in scaling back or starting again. So here are the four considerations: your area and local government restrictions, your staff and their financial impact, your messaging and how you communicate, and your plan if you close. Keep talking, keep showing up, and share positivity. If you’re not comfortable being on camera, go live with your pets—cats, dogs, anything joyful. People need that light right now. These are hard times, but we’re all in this together. Be a leader in the best way you can, because people are watching you—and they’ll thank you for it later. I wish more people in our industry would step up and help. I challenge coaches, associations,