A big part of being a business leader means being an optimist. But there are times when you need to park your optimism. This is one of them.
An asset-based lender told me this week that getting some of his borrowers to take a more realistic view of their situations is becoming an issue. That’s probably not surprising, after all entrepreneurship is a mix of optimism and practical action.
Here is what I would suggest to someone struggling to find a balance between optimism and practical action in the current environment. Recognize that in a crisis, we often defer to our gut, our subconscious, our instincts, and that means your innate optimism could be misplaced at this moment. But there is a time and place for that energy.
Here is how you can direct it. First, park your optimism for a quick minute and see what is going on around you. It is for almost all of us a bad situation. Now is the time to make a plan for the short-term bad situation. Hunker down, push off spending, let employees go, defer payments, take government assistance. Write this into a plan.
The best planning tool for a crisis is a 13-week cash flow model. Then once you are hunkered down and have a good cash-based plan, pull out your optimism and think about how you will attack the new world. You want to take a fresh look at the dual problem of getting back on your feet as a business and how would you be best placed in the new world order where clearly many things will change.
← Insights & News
Putting that optimism on the back burner now and then later directing it to your post Covid-19 future is the most useful way to direct your entrepreneurial energy and optimism.