10 Tips To Overcome Crisis in Business and Focus on Recovery
In these uncertain times, businesses are feeling the effects of the weakened economy. The way you respond to these difficulties shapes the future trajectory of your business. In light of this, we asked 10 business executives how they are focusing on recovery in response to the recent crisis.
Below, they discuss the tools and mindset necessary to be resilient in the face of setbacks.
Everyone is more open and willing to negotiate terms and expenses during times of crisis. Negotiate with anyone willing to listen. That includes your landlord, your utility company, your vendors, and anyone else who is considered "an expense." By getting strict on expenses, the most financially difficult year becomes a little more manageable.
We've been given the gift of time. This is the era of "disrupt or be disrupted". Disruption requires innovation. Innovation requires creativity. Creativity requires time to think. 2020 will be the birth of widespread innovation - from the micro to the macro. What will you do to reinvent yourself?
Preserve Capital and Stay Relevant
You don't need to stop spending altogether but you should thoroughly evaluate how you are spending that money. Stay in touch with your bank so you know when new assistance programs open for applications.
Invest in the Future
Take a look at expenses and determine which ones are unnecessary, and which ones are truly an investment in the future. Instead of making hasty decisions, really consider both the short and long term impact of spending.
Pivot Your Business Model
If your business is struggling it's time to pivot your business model for the now and start planning for recovery and try to anticipate what your customers will need later. Take a look at what works and what doesn't, then brainstorm how you can hold on to the "good" while altering the "bad" so that your strategy better aligns with what your customers are looking for in the new normal.
This Too Will Pass
Do the hard work of right-sizing expenses to cash flow BUT don't forget: this too will pass. There will be an upside to this down-slide. And now is the time to reinvest in creative strategy, digital platforms, and processes that will take maximum advantage of the return of demand for services and products that is coming.
Keep a Level Head
Panicking is useless. View the situation objectively and try to sort out a plan of action. Assess your finances. Check-in with your team. Brainstorm and collaborate. Once you have a solid plan in place, begin to execute, but don’t be afraid to revisit and revise. By taking it one day at a time and remaining flexible and open-minded, your business will have a better shot at overcoming any crisis.
Focus on Short-Term Wins
As a business owner, it is tempting to look too far ahead. When is the economic rebound going to happen? What will 2021 look like? Instead, the best tip I have for business owners is to focus on the here and now. It’s easy to get lost and overwhelmed when looking ahead into a crisis. The best way to get through any adversity is to keep going, one small victory at a time. By focusing on short-term goals with tangible wins, you’re able to manufacture positive momentum that can help overcome anything negative standing in your way. Overcoming a crisis requires small steps and short-term goals. Be present in reality, while trying to block out the temptation to get too far ahead.
Listen to Your Team
Consider doing a mini SWOT analysis to learn what worked and what didn’t during the time they worked remotely during COVID-19. Really listen. You will likely learn ways to improve human connection, processes and plans for the future. We will likely see this listed as a “threat” moving forward, and leaders best prepare.
Operate as Lean as Possible
Circumstances like this serve as a big reminder that cash is king, and at the end of the day, the most important thing is that you have enough of it to keep your business alive. Crisis teaches you what your company really needs, and what it can do without, and the more agile a company can be in pinpointing those things, the better off they will be. Operating as lean as possible, and focusing on the improvement of internal operations while business is slower is the approach that we are taking, and I see us coming out of this even stronger than before because of it.