8 Crisis Management Strategies to Keep Your Business Strong

By Gene Marks & Kelly Spors
The Hartford Small Biz Ahead | Originally published December 12, 2020
Updated: December 16, 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.

8 Things to Have in Your Crisis Management Plan

Get an SBA loan.

The Small Business Administration is now offering very low interest loans to small businesses in need through its Disaster Assistance program. Because these loans are issued directly by the SBA, approval times are significantly less and the red tape is significantly lower.

Get money from your state.

Many states have setup funds, grants and loan programs for small businesses in need of assistance during this pandemic. Every state in the country is providing information, advice and counseling. Go to your state’s website to see what’s available for you…[MORE]

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To read the entire article by Gene Marks & Kelly Spors at The Hartford Small Biz Ahead website , visit: 8 Crisis Management Strategies to Keep Your Business Strong