What to do after a business crisis!
Look at these possible scenarios;
- It is Monday morning, and your computer refuses to start.
- Your son hugs you and knocks over your cup of coffee – all over your laptop!
- You get a call that Dad is in the hospital with a heart attack.
- Someone is intentionally writing bad reviews about your business, and you have done everything to make it right.
All businesses deal with crises at some point. These could be a data breach, IT shutdown, brand damage, data loss, or even a global pandemic like the current COVID-19. A business crisis can be anything that is a significant disruption to your workflow or normal daily operations.
These situations can impact a business, whether large or small. Depending on the intensity of the crisis, there could be loss of existing and potential clients, damage to business credibility, reducing operations, and threatening employee’s lives. At worst, it could lead to your business closing. Without proper strategies and plans to deal with a crisis, it is not easy to recover.
Several weeks ago, we spoke about planning for a crisis. How important it is to have a plan B.
- Plan Thoroughly
- Crisis Management Plan
- Communication is Vital
Now let’s look at the next phase. Today let us focus on strategies to get back into action after a crisis.
Here are three thoughts to provoke you, two ideas to inspire you, and one item to act on!
Three Thoughts to Provoke
Number One. Evaluate Business Crisis
When a business is in crisis or has gone through an emergency, the owner must be aware that intervention is needed. It is not business-as-usual. It would be best if you took the time to reflect on what went wrong, what caused it, and then consider your options.
This quote from Narendra Modi sums it:
Good governance is not fire-fighting or crisis-management. Instead of opting for ad-hoc solutions the need of the hour is to tackle the root cause of the problems.
I recommend performing an after-action review (AAR). If you want a sample, click here.
Number Two. Check Your Finances
Most crises affect your finances either directly or indirectly. If possible, schedule a meeting with your accountant to discuss your cash flow, savings, assets, debts, and upcoming expenses. Reviewing your finances can give you a better insight into improving your money management to prevent future crises.
Number Three. Crisis Plan
Phil McGraw warns us:
“Don’t wait until you’re in a crisis to come up with a crisis plan.”
The first point of action is examining where your business has the most damage.
- Is it your reputation?
- Your operations?
- Or your sales and finances?
Once you know your business’s most affected areas, get your team together and assign them tasks to draw a crisis plan. It may be necessary to invest a substantial amount of time in preparing these crisis plans. The method can be tested and modified at any given time as you wish.
Two Things to Inspire
Number One. Wake up call.
Ryan Reynolds encourages us that:
“Any kind of crisis can be good. It wakes you up.”
We should not take crisis as a punishment though at first, it may feel like one. View any crisis as a lesson and an opportunity to make some good changes for the business. I use the phrase Turn your breakdown into a breakthrough. Crises have been known to birth innovations, awaken new talents and make teams solid and united. Maybe your business crisis is a blessing in disguise!
Number Two. Mental Health
Any crisis can have a severe impact on your mental health. Everything from managing cash flow and negotiating a rent reduction to reducing operations can add to your worries and make you feel stressed.
Knowing you have an action plan for dealing with whatever happens next can help ease some of these feelings and improve your mental health and well-being.
Your Action Item.
Once a business suffers a crisis, it can take a significant toll on the owner and the team. Although this is normal, you may need to change your mindset and actions.
Today’s action item is a two for one.
Has your business suffered a recent crisis? Put aside 30 minutes each day (put it on your calendar) to review the different areas your business may be suffering. An example?
- Monday – what is the financial toll on your business?
- Tuesday – what is the operations toll to your business?
- Wednesday – how is your moral or your team’s morale?
- Thursday – has this crisis affected your reputation?
- Friday – Pull it all together in one document
If you have suffered crises, go through Phase One and then proceed to Phase Two. If you have not suffered a recent business crisis. Start with Phase Two.
Do a review of your business. How can you plan to weather a future business crisis or reverse the damage of a recent problem? For your business to thrive, you need to focus on planning.
Do you need help? Email [email protected] and schedule a time for a consult.