How To Manage Crisis As A Small Business

How to manage crisis, explains some key steps that can be taken by a small business owner when handling crisis.

In business, crisis is certain and  most small businesses tend to forget that it doesn’t just happen to the big corporations. 

Crisis can occur as a result of theft, ailments, injury, loss of major customers etc. This can result in a decrease in revenue generation and possible loss, and can render whatever strategy and plan a business owner has futile.

This article covers some very key steps one must take, and the mindset any small business owner must have in dealing with crisis before it grounds your business.

Your business should always be conducted ethically, from your planning to your business activities. This is important in gaining the trust of your clients and customers. It shows a positive mindset. When confronted by the media to ascertain what happened in case of a crisis, do well to always express positivity about what happened. Your organizational mission and vision statement should always drive inspiration. 

“Your values and vision are very important towards carrying out your business ethically”

Be honest about the problem. 

Identifying and accepting that a problem exists is key to crisis management. A crisis cannot be dealt with effectively if there is dishonesty about the problem affecting your business. Admitting and dealing with the problem when it’s small prevents it from escalating into a bigger situation. 

Always believe in your capacity to deal with whatever crisis hits your business. Whatever the issue is, especially if it requires a professional hand, kindly get one and let them deal with it with some finesse. Denying a problem exists will never solve the situation. The only thing that solves the situation is taking the right action.

Your core values should be well defined. 

Having your core values clearly stated is very important. Your values and vision are very important towards carrying out your business ethically. This is the basic guideline for doing your business and as such will help keep your focus when managing crises. Going back to the basics and restructuring your plans to match your goals and vision is one way to go in managing a crisis. 

Take corrective action.

Admitting you have a problem is one thing, identifying the issue is another. Without doing that you cannot take corrective action. Cutting expenses is corrective action. Withholding or discontinuing a project is also a clear corrective action. 

Even the big corporations stop multi-million dollar projects to save billions. This is to save expenses and meet their organizational goals. 

Downsize and work with your best talents. 

Hard times require us to make hard decisions. As a business owner, you have to optimize your workforce by taking out anyone who doesn’t add value. This is irrespective of the relationship, as they could be family or friends. 

About 20% of revenue generated goes into employee salaries, and during critical times you need to downsize to cut down expenses. Another reason is to increase the efficiency of business operations. It is better to increase wages in an optimized work environment to improve efficiency. 

Cope with Problems and be ready to learn.

Every crisis presents a learning curve. It presents you with an opportunity to amplify your skills and find new solutions. Breaking out of your comfort zone will help your business reach its full potential. It teaches you how to deal with issues like non-productive employees, unprofitable projects and huge expenses. 

Controlling your emotions and applying emotional intelligence especially when dealing with your team is important. Think proactively and strategically; this will help you to become a leader that controls circumstances.

Key takeaways from the article are: