Most people don’t want to think about crises coming up and throwing a wrench in their business plans. But crises can, and do, arise. You might find your business in the midst of one right now. While in some cases, a crisis, such as a natural disaster, a scandal or novel virus that causes a global shutdown, can spell the end for certain companies, others can use the opportunity to grow and find strength.
A crisis doesn’t have to be a breaking point for your business. Here’s what you can do to make sure your company not only survives a tough situation but emerges from the experience stronger and better.
Prepare in Advance
When things are going well, it’s natural to hope that things will continue to go well for as long as possible. But usually, some sort of change or downturn is around the corner. For example, before the COVID-19 pandemic began, some were predicting that a recession or contraction was on the way. While a year ago, few would have predicted that a new virus would be causing economic stress and hardship around the world, some believe that something was bound to change.
Having a plan in place for any sort of crisis that can come up will allow your company to better weather the storm. Since there are many different types of crises, it can be a good idea to have a variety of different response plans in place. That way, you will know what to do and how to act when a crisis occurs.
Keep Lines of Communication Open
Communication is essential to keep your business going during times of crisis. Someone needs to be appointed the leader and that leader needs to be able to share updates and news with others on the team. It’s also vital that everyone has a clear sense of their roles and responsibilities during challenging times.
Along with maintaining lines of communication with members of your staff and teams, it’s also imperative that you keep communication open with your customers. Choose someone to be the spokesperson or public-facing figure during the crisis and make sure that the person understands your brand’s voice and values and knows how to share your message with the public effectively.
Know Where to Get Support
When a crisis strikes, you might not know where to turn or what to do next. You might feel too close to the situation or too involved with your business to clearly see where it can go next. Now can be the ideal time to get outside input and advice about how to handle the situation and what to do next. You can hire a virtual CFO to help address questions about your company’s financial situation, for example. A vCFO can help you decide if you need to make cuts to save money or can help you find ways to raise capital during this time. They can also work with you to help your company take advantage of special programs or services that are designed to provide financial support and assistance during crisis events.
Consider a Pivot
A crisis situation might be just what your company needs to evolve, change course, or move into the next phase of its life. After dramatic changes, you might realize that the way your business previously operated will no longer work. It might be the case that a return to "normal" or what was normal just a few months ago is no longer possible. Now is the time to take stock and assess your company’s direction. It’s also the time to try a new direction or to attempt something that seemed like a pipe dream before the crisis hit but might now be your best option for survival.
Learn from Mistakes
Part of growth is learning from mistakes. As the crisis comes to an end and business starts to pick back up, it’s the perfect time to assess your company’s response and evaluate a few factors. Were there things that you could have done differently? If a future crisis occurs, how can you adapt your response to improve results?
If the crisis stemmed from an issue inside of your company, what can you do to keep a similar situation from coming up in the future?
Your business doesn’t have to weather crises and storms alone. The team at New Direction Capital is here for you. To learn more about our vCFO services and how we can help your business thrive and grow, contact us today.