I think most people thing of negative outcomes for a business, or for their personal finances, during the crisis. The reality is, on the other hand, that not only businesses collapse during a crisis, a crisis can be survived. And, at best, a business or an entrepreneur can even thrive after escaping a crisis.
There are several types of crisis that can hit a business, understanding them and preparing for them will fortify your business during the crisis.
Many of us remember the latest financial crisis of 2008, which had impacted millions of lives and businesses worldwide. The effects of such a major financial downturn are so widespread, it is hard to escape. Some activities are hit harder, some are less vulnerable. There will always be another economic crisis, so it is wise to know their signs and also how to prepare for them. There are several other types of crisis your company should be prepared to face in case they happen. A natural disaster could occur, or civic unrest, or a cyber-attack, data leakage, a customer or supplier can go out of business suddenly, the death of the CEO, a media scandal, and the list goes on.
Whatever the type of crisis, you as an entrepreneur should be ready to face them. During good times, it is important not to enjoy them care-free. Planning and preparing for the types of crisis you could face is essential to survive, and even better, grow. Your managers and employees should know their role to play in mitigating any risks and responding to a crisis. Any such big event is better handled when everybody keeps calm. Communication is vital, transparency and honesty are crucial in these cases.
During a time of crisis, it is important to evaluate your strengths and weaknesses. Analyze your existing customers, determine who are the most valuable ones. Your most loyal customers, who will continue doing business with you during the crisis you are going through, or all of you are going through, will be your best support for continued business. Focus on keeping them as customers to get your business during the crisis.
There are certain businesses that can even be started or developed during the time of an economic recession. Activities such as bargain stores, groceries, auto repair shops, property management companies, financial advisors, accounting firms, healthcare providers, and others. You should identify the types of activities that will be needed during a crisis, as well as those that are most likely to see their customers withdraw their business once any sign of gloom is present. People will cut their expenses, companies as well, in time of crisis, but we can’t get rid of all of them, so activities such as those listed above, and others, will be crisis-proof.
In trying times, it is best not to be alone, this is why developing connections, partnerships and collaborations will take your business across the hole and even grow it after the crisis has passed. Don’t let any crisis your business encounters pass and be forgotten. Learn all the lessons possible from your experience, as it is still recent.