How to Handle Bad News in the Business

When building a business “sh*t happens.” The problem is that nobody every teaches you how to handle bad news when it comes. When you’re leading your own team or even if you’re solo, being able to bounce back when things go sideways is important.

Here’s exactly how to do it.

1 - Pause. Don’t answer the email, don’t spiral, don’t rewrite your whole strategy at 9pm. Your only job in that first hour is to get to an objective place, because your emotions are terrible at making decisions.

2 - Get Objective. Get to the point where you’re not trying to frantically pitch new business to make up the lost revenue, you’re simply clear on the “job to be done” to fix the problem. It would feel great to replace a departing client but you’re really trying to fix a $1,000/month hole in the business.

3 - Act. When you’re clear on the problem, act swiftly to fix it. Cut an expense, follow up on a pending deal, pitch some new business, do what must be done RIGHT NOW to fill that hole in the business.

4 - Reflect. Once the problem is handled and the hole is filled reflect on what happened. Did the client leave you because you solved their problem? Because their business changed? Or, because you didn’t deliver? Try to improve your process and business to reduce the chance of it happening again. Putting reflection at the end will limit overreactions.

The bad news is coming either way. The owners who last are the ones who turn problems into a process not an emotional emergency.

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Three Things I’m Thinking About This Week

• Dark Christmas - Are you seeing what the Congress might do by making daylight saving time permanent? If the Sunshine Protection Act passes and is signed into law, it would mean we would stop springing forward and falling back. The effect: more light in the afternoon during the winter and less light in the morning. How much less light in the morning? On Christmas Day, the sun wouldn't rise until after 9 a.m. in Milwaukee. As a morning person, I'm not a fan. For your business, it could have an impact if your business relies on morning traffic. It's something to be aware of.

• Free Claude Webinar Tuesday - I kicked some butt with Claude yesterday and it estimated that it saved me five hours in one day! That sounds like B.S., and everyone's saying stuff like that, but I want to show you the receipts. If you want to save time and generate opportunity to grow your business, my Get Started With Claude webinar is for you. I'll show you how I'm getting these kinds of results, and we'll brainstorm ways that you can get them too. Register here. The event is Tuesday at 1pm.

• SBOC Awards Open for Nominations - Our 6th annual Small Business Owners Conference sponsored by Athena Legal Solutions and Money Masters Bookkeeping is in September and at the event we offer something you just don’t get anywhere else - RECOGNITION FOR YOUR HARD WORK! We host an awards program that is open to any entrepreneur to be recognized in five different categories. The nominations are open on and they’re free to enter. Submit an entry for your business - or - nominate a client/colleague and they can enter. Nominations CLOSE on 7/31!

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