There are moments in business that feel like weather events: you can see them coming on the horizon, you brace, and you hope your roof holds. Then there are moments that arrive without warning — sudden, violent, and all-consuming. The coronavirus epidemic was the latter for many companies. This is the story of how it tore at the seams of my small company, the decisions that nearly sank us, and the choices that ultimately saved us. It’s part narrative, part playbook — written for founders, managers, and anyone who needs a practical blueprint for surviving an existential shock.
Part I — The calm before the storm
We were a profitable services business with about 40 employees: a mix of product people, engineers, sales, and operations. Our clients were mid-size companies in retail and hospitality — sectors that boomed for years and that loved our analytics and supply-chain optimization work. We had a stable runway, a modest cash cushion, and no outside investors pressing for aggressive growth.
Still, we were set up for normal disruptions: seasonal slumps, a big client leaving, or a tech stack failure. We were not set up for an epidemic that would shut down cities and reorder entire industries overnight.
Part II — The first crack: when the news became reality
The first real signal was not the global headlines — it was the two-week silence after a major client canceled a multi-month engagement. They were “pausing until we have more clarity.” Then another client deferred a product rollout. Revenue that was expected in weeks evaporated.
Three converging facts changed everything in 72 hours:
- Demand collapse — Clients in hospitality and retail froze budgets. Pipeline deals were delayed or canceled.
- Operational constraints — Our on-site work and pilot programs were impossible with travel and social distancing rules.
- Supply-chain ripple — Vendors we relied on delayed invoices and delivery; payments slowed.
Our monthly cash burn that had seemed conservative suddenly looked reckless. Forecasts became meaningless overnight. Most dangerous: decisions had to be made before we could fully model the new reality.
Part III — The emergency triage (first 10 days)
We moved into an emergency cadence: daily leadership huddles, a triage checklist, and immediate cash-focused actions.
Step 1 — Freeze and triage expenses
- Immediately stopped discretionary spending: travel, conferences, non-essential hiring, contractor renewals.
- Paused all capital expenditures.
- Temporarily suspended marketing campaigns that required conversion windows our clients no longer had.
Step 2 — Cash-first forecast
- Built a one-page “Cash Bridge” covering the next 90 days with best/worst/likely scenarios. Include: starting cash, committed payroll, fixed costs, receivables, and likely client cancellations.
- The truth was ugly: with client freeze rates at 40%, runway fell from 9 months to under 3.
Step 3 — Honest conversations with the bank and landlords
- We disclosed the situation early and asked for temporary relief on rent and lines. Many institutions favored transparency and offered short deferrals — but only after we showed a credible plan. Don’t wait to tell them; creditors prefer a plan to silence.
Step 4 — Client triage & communication
- We audited all client contracts and prioritized those we could help transition to remote, short-term value, or emergency services. We offered contingency pricing and phased deliveries. Some clients appreciated the agility and paid retainers; others could not.
Step 5 — People-first messaging
- Immediately called an all-hands. We were transparent about scenarios and the steps we were taking. Panic spreads faster than facts; clear internal communication reduces rumors and helps people focus.
Part IV — The wrench: hard choices on payroll and retention
Payroll was the biggest line in our P&L. Cutting it felt brutal — and premature cuts risked wrecking the company’s ability to recover. We followed a three-stage approach.
Stage A — Voluntary cost sharing
- Executive pay reductions: we led by example. Senior leaders took the heaviest cuts (20–40%), with sliding scales tied to responsibility. That bought credibility.
- Voluntary reduced hours and part-time arrangements were offered to employees who could tolerate them. We guaranteed health benefits during any temporary hour reduction.
Stage B — Redeployment and internal projects
- We redeployed people into short-term revenue-generating projects: rapid audits for clients, emergency consultancy, and small fixed-fee engagements. This created cash and kept people productive.
- Launched internal efficiency projects (automation, productization) that could produce future SaaS offerings — turning headcount into potential assets.
Stage C — Furloughs and layoffs (the last resort)
- After exhausting the above, we implemented time-limited furloughs instead of immediate layoffs where possible. Furloughs reduced payroll but kept people attached to benefits and the company.
- When layoffs were unavoidable, we offered severance, extended health coverage, and connection support (outplacement, references). We split reductions across all levels to avoid concentrating pain on junior staff.
Lesson: sequence, transparency, and generous communication matter. People remember how you treat them in crisis.
Part V — Business model pivot: survival through adaptation
Survival meant creating revenue where the market now existed.
Rapid productization
We had consulting methods that could be productized within weeks — canned assessments, dashboards, and fixed-price “emergency playbooks” for clients. The fixed-price, short-duration model reduced client risk and fit the new buying behavior.
Short-term pricing & retainers
We introduced “surge retainers”: short, high-value engagements that locked in payments while delivering immediate tactical value (e.g., cash optimization, supply-chain triage). These were priced to be attractive versus full projects but gave us breathing room.
New markets
We targeted industries that were still spending: logistics, telemedicine, grocery fulfillment, and government emergency procurement. Some clients were moving fast and needed partners who could adapt. Our fast-response playbook won us work that offset losses.
Remote delivery culture
We converted everything to remote-first: delivery models, client collaboration platforms, and security. This reduced the need for travel and opened us to clients outside our region.
Part VI — Cash preservation & alternative financing
With runway ticking, we explored three financial options.
Option 1 — Bridge loans & lines
Local banks were cautious; credit unions and small local lenders were slightly more flexible. Again, speed and a credible plan mattered. Lenders wanted to see how loans would be used to bridge to recovery, not to cover bad habits.
Option 2 — Non-dilutive alternatives
- Invoice factoring for receivables where clients were still paying.
- Short-term grants and emergency assistance programs (where available). These required admin work but could stretch cash further.
Option 3 — Equity & strategic partnerships
We approached friendly investors with a short ask: a small bridge round to protect the team and productize our IP. In return we offered discounted valuation rights and defined milestones. Not every investor wanted to move fast, but a handful did. If you consider investor money, be transparent about the scenario and the realistic use of proceeds.
Part VII — Operational resilience & leadership practices
Crisis exposes leaders and elevates the need for clear rituals.
Daily rituals
- 15-minute leadership check-ins each morning (cash, people, wins).
- Weekly all-hands with Q&A: frequency breeds trust.
- A simple shared dashboard: cash, burn, client status, and open tickets.
Decision discipline
We adopted a “two-day rule” for non-critical decisions (no executive paralysis). For urgent decisions, we used clear owners and a documented rollback plan.
Mental health & empathy
Leaders checked in personally. We increased access to counseling and created “care days.” Burnout during crisis is real; compassion retains talent.
Part VIII — Communications: how we talked to the outside world
Communication strategy matters for customers, employees, investors, and vendors.
For clients
- Early, factual, and solution-oriented. We stated our constraints, proposed alternatives, and asked where we could be most helpful. Many clients responded with pragmatism.
For employees
- Weekly town halls, anonymous suggestion box, and weekly “state of the company” snapshots. We avoided false optimism — but we also provided hope and concrete actions.
For vendors & landlords
- Negotiated payment extensions in return for transparent short-term plans and commitments to resume full terms when possible.
For investors
- Proactive updates with scenario plans and KPIs. Investors are more likely to help if they see solid contingency plans and honest communication.
Part IX — The turning point
Our turning point wasn’t a single event — it was a confluence: a few shorter-term retainers rolled in, two furloughed team members launched a productized service that scaled quickly, and a small bridge loan closed. That combination restored confidence. We slowly rehired, reactivated paused projects, and invested small amounts in product development.
What mattered most: we treated survival like a project with milestones, metrics, and honest reporting.
Part X — Lessons learned (the practical checklist)
- Build a simple, frequent cash forecast (90-day horizon) and update it weekly.
- Lead with transparency: people tolerate bad news when it’s honest and accompanied by a plan.
- Prioritize payroll sequence: executive cuts, redeployment, voluntary hour reductions, furloughs, then layoffs.
- Productize quickly: convert labor into repeatable, sellable products to reduce dependency on long sales cycles.
- Diversify clients and verticals to avoid concentrated demand risk.
- Maintain creditor relationships — early disclosure often wins concessions.
- Invest in remote infrastructure before it’s needed. The pivot is faster and less destructive when systems exist.
- Practice scenario planning: test multiple bad-case scenarios regularly so you can act quickly.
- Document everything: contracts, client confirmations, and financial decisions protect you in disputes.
- Protect mental health: burnout and poor decision-making cost more than a few hundred dollars in benefits.
Part XI — Sample templates (copy-and-adapt)
Below are short templates we used. Edit for tone and specifics.
All-hands opening (short)
Team —
I want to share the current reality and our plan. We’ve seen a material slowdown from several clients. Over the next 90 days we will focus on cash, deliverables, and protecting as many jobs as possible. Today we are pausing new hires, reducing executive pay by [X%], and offering voluntary reduced hours. We’ll meet every week to share progress and answer questions. Please read the plan attached and bring questions to today’s Q&A. — [CEO]
Client contingency offer (short)
Hi [Client],
Given your pause on [project], we can offer a phased approach: a 4-week rapid audit for [fee], delivering prioritized next steps for immediate savings. Alternatively, we can convert remaining work into a monthly retainer of [amount] to preserve continuity. We’re happy to discuss which best suits your current priorities. — [Account Lead]
Investor update (bullet points)
- Current cash balance: $X
- Runway at current burn: Y weeks
- Actions taken: hiring freeze, executive pay cuts, productized offering launched
- New commitments/loans: $Z (expected close date)
- Ask: support for bridge round of $A to reach profitability milestone in 6 months
Part XII — Rebuilding and the new normal
Emerging from the crisis, we didn’t return to the same company we had been. We were leaner, more product-focused, and more disciplined about risk. We diversified customer base, hardened cash processes, and made remote delivery a competitive advantage. Most importantly, we learned to treat volatility as an operational risk to plan for, not a freak event you hope will never come back.
Final thoughts — the human ledger matters most
Money, markets, and operations are what threatened us. But the human ledger — how you treated your team, clients, and partners — determined what you could rebuild. We survived because we chose hard honesty over short-term optics, because we protected dignity where possible, and because we converted fear into structured action.
If you’re in the middle of your own storm: breathe. Build the simplest cash-first plan you can, communicate plainly, and sequence your decisions with compassion. The roof might leak, but with a clear plan and steady hands you can patch it, keep people warm, and rebuild stronger.
If you want, I can:
- Turn the checklist into a downloadable 90-day survival plan (spreadsheet outline).
- Draft customized communication templates for your company size and situation.
- Walk through your own company’s 90-day cash model step-by-step if you paste basic numbers.
Which would you like next?
