Printavo PrintHustlers Podcast The Screen Print Shop's Guide For Surviving During COVID - 19
Mar 20, 2020
09:46
COVID-19 is devastating screen print shops. There are no easy choices. But here's what you can do RIGHT NOW to save your business and prepare for the struggles to come.
Read the full article, full of helpful links and resources: https://www.printavo.com/blog/covid19-for-screen-print-shops
1. 100% downpayment policy
Get pre-payment for all orders going forward. Now is the time to implement this policy. No exceptions. This is an existential matter for screen printing businesses right now. Our industry is not in the position to offer customer interest-free loans during the best of times – and certainly not now.
Get pre-payment for all orders going forward. Now is the time to implement this policy. No exceptions. This is an existential matter for screen printing businesses right now. Our industry is not in the position to offer customer interest-free loans during the best of times – and certainly not now.
2. Sick policy
Do not let sick people come to work. If you or your employees get sick, your problems get much worse. You will have to determine what is appropriate given your situation, but you have a duty to forbid sick workers from coming to work for the near future.
Do not let sick people come to work. If you or your employees get sick, your problems get much worse. You will have to determine what is appropriate given your situation, but you have a duty to forbid sick workers from coming to work for the near future.
3. Clarify your terms & conditions
Have clear terms and conditions that outline exactly what you will do - particularly regarding returns, refunds, and order cancellations.
Have clear terms and conditions that outline exactly what you will do - particularly regarding returns, refunds, and order cancellations.
4. Get paid: reduce accounts receivable
Have a staff member dedicated to reducing your accounts receivable. That means calling every customer that owes you money and getting them to pay – or figuring out a plan to pay as soon as possible. Protect your cash supply at all costs. Settle up now!
Have a staff member dedicated to reducing your accounts receivable. That means calling every customer that owes you money and getting them to pay – or figuring out a plan to pay as soon as possible. Protect your cash supply at all costs. Settle up now!
5. Get rid of debt & delay accounts payable
Immediately work to protect your cashflow. Audit your debts by cost and importance. How much risk is there in your shop? It is far better to be open with creditors early on before you are in crisis. There are deferment and reduced payments available from most creditors.
Immediately work to protect your cashflow. Audit your debts by cost and importance. How much risk is there in your shop? It is far better to be open with creditors early on before you are in crisis. There are deferment and reduced payments available from most creditors.
Talk to your landlord about reduced rent, speak with your banker about reducing payments or extending them, and realize that your creditors are likely looking for chances to reduce their risk as well right now.
6. Employees: offer furloughs
If your employees are amenable to it (and are financially able), offer a temporary furlough. A furlough is when an employee is asked to temporarily stop working. Additionally, if there is an employee that you need to cut or are contemplating cutting – this is the time. Make the hard cuts now.
If your employees are amenable to it (and are financially able), offer a temporary furlough. A furlough is when an employee is asked to temporarily stop working. Additionally, if there is an employee that you need to cut or are contemplating cutting – this is the time. Make the hard cuts now.
7. Leadership and management: cut hours and pay
First, take a pay cut yourself. That is a bitter pill, but true leadership during a time of crisis. Inform the staff that you have taken this action.
First, take a pay cut yourself. That is a bitter pill, but true leadership during a time of crisis. Inform the staff that you have taken this action.
Next, have a candid discussion with management about the situation you are in. They will not only offer their advice but help you decide what's possible. They may be able to take reduced salaries or hours.
While you still must abide by all labor laws, you can offer your employees the choice of a pay cut or reduced hours upfront.
8. Drive revenue from online stores
If you're not using online stores, you should start. Offer free shipping for the stores to incentivize shopping – and avoid possible infection.
If you're not using online stores, you should start. Offer free shipping for the stores to incentivize shopping – and avoid possible infection.
9. Back to basics: cut expenses
Review last month's expenses and begin cutting them. The sooner you feel the pain the easier the process. Here's how to structure this process: list all your recurring expenses from largest to smallest.
Review last month's expenses and begin cutting them. The sooner you feel the pain the easier the process. Here's how to structure this process: list all your recurring expenses from largest to smallest.
Then determine what you must have, what's nice to have, what you don't need, and what you can cut today. Then get to work.
10. Don't buy equipment right now
Delay any large capital expenditures immediately. If you are going through with a large deal, consider halting it. This is deeply unfortunate. But it is essential to cut upcoming expenses immediately. Cash is king.
Delay any large capital expenditures immediately. If you are going through with a large deal, consider halting it. This is deeply unfortunate. But it is essential to cut upcoming expenses immediately. Cash is king.
11. Contact your suppliers now
No matter who you purchase wholesale garments and supplies from, contact them immediately. Inform them of your financial situation.
No matter who you purchase wholesale garments and supplies from, contact them immediately. Inform them of your financial situation.
Ask them for guidance about their plan for dealing with the crisis. At the time of this writing, it is likely they are still formulating their plans as the situation develops and changes.