8 Crisis Management Strategies to Keep Your Business Strong
By Gene Marks & Kelly Spors
Small Biz Ahead | December 12, 2020
Running a small business is challenging. But now, these challenges have multiplied thanks to the Coronavirus pandemic. So, how can you keep your business afloat over the next few months until this is behind us? Here are eight crisis management strategies you can use to keep your business strong.
What is Crisis Management?
Crisis management is the way by which businesses and other organizations deal with highly disruptive events or disasters—essentially what they do to navigate and minimize the effects of the crisis.
The most effective way to do this is by creating a formal crisis management plan or risk management plan that addresses the key risks a business will face in the event of a crisis. This response plan basically lays out all of the risks and the steps they will take to minimize each of those risks.
Such plans needs to look at a crisis from all angles, including how it could affect your customer base, employees and suppliers, as well as your general ability to continue your operations and generate revenue. As we’ve learned during this crisis, it’s important to consider what your crisis management process would be if your business is forced to shut down temporarily or operate remotely during a crisis situation.
How Small Businesses Survive Recessions
No small business is completely recession proof, of course. But those that have created a crisis management plan (often part of a general business continuity plan) are much less exposed during a recession because they have a roadmap they can pull out when a recession strikes—or even better, when it appears likely to strike in the near future. They don’t have to scramble to figure out what to do or how to react because their crisis management strategies are planned out and ready to be enacted.
During the Great Recession of 2008 to 2009, small business owners who had a business continuity plan were able to navigate the economic crisis much more successfully because they had already thought through the key challenges a crisis situation such as a recession would bring, such as fewer customers willing or able to spend money and a lack of business financing available. Because they had created those plans in advance, they didn’t find themselves caught off guard and were able to quickly make the changes they needed to survive.
Thinking through all of the ways a crisis could affect your business is imperative. The following eight tips provide a starting point for small business owners to build their own crisis management strategies and make a plan—not only for this crisis, but the crises that will inevitably happen down the road…
To continue reading, visit Small Biz Ahead at The Hartford: 8 Crisis Management Strategies to Keep Your Business Strong