How to adapt your business model to the new reality of the Coronavirus quarantine with Smart Money Mamas Chelsea Brennan (ENCORE)

Entrepreneur Chelsea Brennan’s product sales are surging during the Coronavirus pandemic but the boom has brought some difficult business and ethical decisions. The founder of Smart Money Mamas shares her personal money story, along with how to do a  money fire drill so you and your family are ready for emergencies.

Chelsea Brennan

Chelsea’s Money Story:

Chelsea Brennan:
I still think of myself as self-employed, right? This is like my business that serves me in my family, but the reality is it's grown over the past couple of years. We have contractors, numerous contractors, that work for us and we have affiliates promote our product and depend on their affiliate commissions for their business revenue. Our most popular product on our site is called our family emergency binder. It's this product that fills the gap between kind of your general having the right insurance and having a will and what your family would actually need to navigate a crisis.

Chelsea Brennan:
As this whole pandemic started to happen, we saw sales pick up of that, which on one side as a business owner is great, but on the other side it was really emotional for me of, am I profiting off a crisis, am I taking advantage of the situation, even though the product existed long before this all happened. My initial reaction was to discount it significantly to make sure more people got it, but I had to think through was I jeopardizing my ability to support my regular contractors who typically work with me? How is this going to affect my affiliates? How do I communicate this to them in a way that they think this is the right decision?

Chelsea Brennan:
Something that once upon a time when it was just me would have been an easy decision to just slash the price and move on. I had to have a lot more conversations and think more carefully about it for several days before he made the decision.

Bobbi Rebell:
Right. Because we realized that so many of our businesses, even though you think of yourself as a solo entrepreneur, are actually connected to other people and their income if you have suppliers, vendors, and then on the other hand, your clients. It can be a bit complicated. How did it work out?

Chelsea Brennan:
We decided to reduce the binder price by 40% for the remainder of the crisis. We keep setting an end date on it just because it helps optically and people understand what's going on, but we keep extending it through the crisis. It wasn't a very expensive product to start. It was $39. Now it's $23. We talked to our affiliates about the fact that like, listen, this isn't a sexy product. It never has been, right? This isn't something that people want to think about.

Chelsea Brennan:
If we discounted the price, if we made it super accessible, we could get it to more people and get them to take action on it in a time where even people who bought it in the past have a tendency to kind of stick it in the drawer of, "I don't want to fill this out. I don't want to think about it. I know I need it, but I'll deal with it later," whereas we could really encourage them to use this as an opportunity to get prepared. Everyone in our affiliate group completely understood that. They thought it was a great idea. We have been discounting it and find that balance between making sure we're supporting my business and the other businesses that depend on the binder, as well as making sure we're helping the community as well.

 
“People value things more that they pay for. So I could have made the product free and I think that we would have had fewer people.”
 

Chelsea’s Money Lesson:

Chelsea Brennan:
I think that if you're a business owner, you have to treat your business as a business. As much as we all have that helper mindset and we want to make sure that everyone has everything they need all the time in our community, first of all, people value things more that they pay for. I could've made the product free and I think that we would have had fewer people filling it out. We're getting lots and lots of emails of people taking action, which is my favorite thing. You have to support yourself and the people that depend on you, your family, your contractors, your employees. Don't feel guilty about having a business through recession, through a downturn because you still have to survive, to keep serving your community.

Bobbi Rebell:
Right. Because if you don't make money and you don't pay your bills, those people are not going to be able to pay their bills. It's important to remember that everything is connected.

 
“You have to support yourself and the people that depend on you. Your family, your contractors, your employees. So don’t feel guilty about having a business through a recession, through a downturn because you still have to survive. ”
 

Chelsea’s Money Tip:


Chelsea Brennan:
The family emergency binder came about because my husband is a stay at home dad who is not super involved in the day-to-day of the finances, right? We have regular money conversations, but he's not the one signing into accounts, paying the bills, understanding the investments. I was a little bit worried of if something ever happened to me. We have two young boys. The emotional difficulty for him of having to both deal with any kind of grief and learn a whole new set of skills. One month out of the year, we call it our fire drill month, he takes over all of our finances for the month. I have to step out and be quiet, which is the hardest part, right, is to let him-

Bobbi Rebell:
Does he come to you for help?

Chelsea Brennan:
He does. The way we run it is that he's got to go to the binder first. We're trying to find holes in the binder in the first place of like, okay, where are things that we didn't write down that we should have written down? But he does come and ask questions. The first time was a little bit difficult, right? We had a couple of things that fell through the cracks a bit, but that's natural and now we're in year three and it's gotten a lot easier, right? He knows. When we have money conversations in the other 11 months of the year, he's more involved. He has more buy in, and I feel like it's built a lot of comfort for both of us.

Chelsea Brennan:
My money tip is if you have one partner in a relationship that manages the majority of the finances or if you're equal partner switch, let the typically secondary partner take over and really get some practice in case they ever have to step in because they likely will at some point. Even if it's just a temporary point of an illness or whatever, then they have that comfort that they can do what they need to do.

Bobbi Rebell:
Exactly, or even worse, what could happen is they could just do nothing and that would be even scarier. What about if people sort of share things equally, if they divide and conquer, which a lot of couples do?

Chelsea Brennan:
Yeah. I love the idea of swapping completely, right? Take over the other responsibilities. We see this sometimes with like home maintenance and childcare, right, where one partner is the stay at home parent. We have this in our house except the difference is I'm home also working from home, so I kind of see what's going on, but it's letting the other partner handle what you normally handle, whether that's school routines or packing lunches or managing the auto maintenance, right? It's experiencing what you would have to pick up the slack on if your partner wasn't around.

 
“We are getting lots and lots of emails of people taking action, which is my favorite thing.”
 

Bobbi’s Financial Grownup Tips:

Financial Grownup Tip #1:

Think about all the financial stakeholders before making a money related decision. For Chelsea, this included not just herself and her family, but also people with whom she had business ties and, of course, our customers. This applies even to our families. You may want to do something with the family's money, but we need to all think about the impact they will have on everyone in our financial ecosystem.

Financial Grownup Tip #2:

Pay it forward, but also pay yourself. My bet is Chelsea's community will remember that she cut them a break during this tough time, but they will also respect the fact that Chelsea made sure to take care of her own family. That will go a long way towards sustaining her business well beyond this time period and people remember that and they're okay with that. What are you doing that people will remember?

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Some of the links in this post are affiliate links. This means if you click on the link and purchase the item, I will receive an affiliate commission at no extra cost to you. All opinions remain my own.

Advice, Business, Entrepreneurs, Financial Grownup, Get Paid More, Role Models, Women Role Models, Women EntrepreneursBobbi Rebell KaufmanChelsea Brennan, Smart Money Mamas, Coronavirus, COVID-19, Entrepreneur