Christopher Ruvo, executive editor of Counselor magazine, conducted a webinar on the impact of coronavirus with executives from mid-sized distributorships: Ed Levy, president of Edventure Promotions (asi/186055) in Chicago; Renya Nelson, founder of Brand+Aid (asi/145193) in Salt Lake City; and Joseph Sommer, owner/founder of Whitestone Branding (asi/359741) in New York City.

As the virus continues to spread and companies remain shuttered, the panelists discussed what kind of revenue decline they’ve been contending with, how they’ve pivoted in recent weeks, operational  changes they’ve had to make, government aid they’ve applied for, what the next few months will look like and their advice for firms across the industry.

“The coronavirus has completely flipped our distributorship upside down,” said Sommer. “We’re in a coma. It’s completely changed the business as I know it.” He added that sales were down a whopping 98% between the first and fourth weeks of March, and he had to lay off six employees by the middle of the month. Meanwhile, Nelson said revenue is down 75% when compared to March 2019, and Levy, while his business was at zero just a few weeks ago, has been able to continue sourcing legitimate PPE products, which have brought back to about 50% of pre-virus levels.

“Nothing’s worse than no emails, no calls and no projects to work on,” Levy said. “We’re not built that way.”

While it was difficult to lay off team members, Sommer said companies can’t continue operating as normal because “the well will run dry.” There are no definite answers as to when things will get back to normal, but Sommer is prepared to operate at zero until at least June. “Make sure you look at your runway and how long you can go for if your business is bringing in nothing,” he said. “I’m not running it on the assumption that I’ll receive aid from [the Paycheck Protection Program].”

He added that progressive distributorships, those that pay a hybrid of salary and commission, offer health insurance and contribute to 401(k)s, will be impacted significantly because they’re not bringing in any revenue while there are still high employee costs to be managed.

While Sommer and Levy were confident that the economy would bounce back quickly once things got back to normal, Nelson wasn’t so sure. “It doesn’t mean events as we know it are ever going to be 90,000 attendees again,” she said. “I don’t think it will for a few years. I don’t think brands are going to risk it.”

Levy is preparing for meeting a new type of demand borne of the crisis: He’s certain that companies of all types will want more sanitizer, gloves, masks and other healthcare items on hand at all times, even after the virus is gone. Just as 9/11 changed how we go through airports, he said, the virus will permanently change how we go to work, school and stores, which will all require more conscious wellness measures.

“We’ve been dealt this,” said Levy. “We can let things happen, or we can make things happen. Reel everything in, turn off the faucets, regroup and then make new plans. When times get tough, go back to the basics.”

Along similar lines, Sommer says he's following a personal "10 Commandments" for adapting to a crisis. He suggested that others might want to take similar steps. The directives include: 1. Figure out how long you can go with paying your fixed bills with the cash you have in the bank, assuming you'll be bringing in nothing. 2. Work assuming revenues are going to be $0 and no new capital will be available for several quarters. 3. Implement a hiring freeze, let go of low performers, and do more with less. For the rest of the tips, listen to the webinar.