A crisis can manifest in a variety of forms: market changes, supply crazes, natural calamities, or quick changes in customer preferences.
However, regardless of the circumstances, a company that remains resilient during a difficult situation always emerges much stronger. Through appropriate techniques, you will be saving the skin of your operations, team, and your customers’ trust even when everything about you looks bleak.
1. Strengthen Cash Flow Management
In times of crisis, your cash flow serves as a safety cushion. Because of the decrease in revenue, you are able to maintain the continued operation of the business thanks to the cash reserves you have. On the other hand, JP Morgan Chase found that the majority of small businesses only have 27 “cash buffer days.”
In other words, your funds are already scarce. That being said, even a few hours to recheck your numbers are worth it: reflecting on your expenses, revising your budget, and stopping non-urgent activities in general creates some breathing room.
2. Improve Operational Flexibility
Being flexible means you can shift gears whenever needed. According to Deloitte, businesses with an agile structure can address risks and disruptions promptly, 30% faster than others. The approach allows staying afloat during a full-blown crisis.
Flexibility can manifest in arranging team schedules, fine-tuning the workflow, and implementing new software—whatever it takes to keep the business running. It also involves changing how services are provided or how goods are delivered.
3. Strengthen Customer Relationships
In times of uncertainty, you must also provide assurance to your customers. Even in difficult times, they can stick by you because of the relationship you have with them. A study done by the Harvard Business School shows that customers who had loyalty to a business were four times more likely to patronize it even when the world experienced an economic downturn.
Such loyalty can build when you show up, communicate well, respond swiftly, and provide help where you can. Each of your gestures, no matter how small, tells a client they matter to you.
4. Support and Communicate With Your Team
When things feel shaky, your team looks at you to determine which way to go. Clear communication removes some strain and maintains the concentration where it belongs. In fact, as Gallup puts it, “even through the tough times,” engaged teams are more productive by 21%.
People like to feel secure, and that is a part of what makes regular check-ins effective. The brief status updates, open interactions, and making your presence accessible instill a sense of stability in your team.
Lending an ear and making yourself accessible makes it possible for people to express their issues. People who feel backed are free to pitch in their most creative ideas.
5. Review and Strengthen Your Risk Plan
Sometimes, you do not see the gaps until a crisis happens. A risk plan ensures that you are better prepared to handle the surprises. For example, according to PwC’s survey, organizations with solid risk structures recover 40% quicker from big disturbances.
That being said, make sure to revisit your emergency protocols. Test your reserve systems, new cybersecurity solutions, and the same weak links in your supply chain. Revise plans so they pertain to what is happening now, not what was the case several years ago.
Stability Comes From Smart Foundations
Just because you go through a crisis doesn’t mean that your entire business needs to end up in shambles. With a strong foundation, you can navigate the uncertainty more easily and create a business that will always end up unshaken by a storm.
