One thing that you need to know about business is the fact that things don’t always work out the way you want them to.
So, in order to thrive and prosper, your business needs to have a contingency plan.
Now, we are not suggesting that you should assume things will go wrong but getting ready for a scenario where things don’t just work out might be a great plan.
With that in mind and without further ado, here are ten smart tips to help you prepare for any business crisis and business emergency.
10 Smart Tips to Prepare for Business Crisis and Emergency
1. Identify business crisis types
First, you need to start by identifying different potential crisis types.
For instance, is this a business crisis or emergency that will cost you a lot of money directly, ruin the reputation of your business or cause a downtime?
Each of these can be equally as devastating but solving these problems often requires different solutions.
Also, make sure that you make an estimate of how long it will take for you to bounce back from the problem in question.
A financial loss can be recovered from much more quickly than a blow to your company’s reputation.
2. Take a look at your record
Another thing you can do in order to prepare for a business crisis or business emergency is to study your own history.
How frequently do these problems occur?
The problem with this lies in the fact that a business that’s just starting out might lack history altogether.
In this scenario, it might be smart to compare yourself to others in your industry, especially those whose operations are similar to yours in size and scope of work.
This way, you can get much more accurate guesswork and make a more dependable crisis timetable.
3. Provide quick responses to manage business crisis
Most often, the speed of response will make a difference in efficiency, which is why you need to be ready to act right away.
The swiftness of your response will enable you to do some important damage control and might be able to help you avert the crisis altogether.
Think about it this way. Some of the biggest problems can remain outside of the scope of the public, just because the team managed to resolve things before the word got out.
By the time the public might have known about it, the news was no longer relevant. This brings us to our next issue
4. Crisis management team (PR)
What you need in order to control the story is a skilled PR team on your side.
An inadequate response (especially inadequately timed response) can have catastrophic repercussions and make the situation even worse than it originally was.
This is why you need experts who can address the issue publicly without making further mistakes. Damage control is, sometimes, all that you can do.
Naturally, your PR needs to work with your legal team in order to cover all basis of this problem.
5. Avoid downtime in your operations
When it comes to the technical issue of your business, there are only so many places where things can go wrong.
For instance, if your manufacturing process depends on machinery, the maintenance of these machines is paramount.
However, so is the issue of the power of your facility. This is why you need to undertake two major steps of precaution.
First, you need to have an independent, backup power source. Second, have a dependable emergency electrician on speed dial.
6. Bulk orders and storage
Sometimes, the downtime and work-related problems are a problem with the supplier or a scenario where you can’t get your hands on enough raw materials necessary for production.
To avoid this, make sure to place bulk orders whenever you can and, most importantly, have adequate storage facilities.
Sure, this is a tad more expensive method, due to the fact that it requires a larger initial investment.
Nonetheless, it also provides you with a higher level of security and lowers a chance that your work will be interrupted and reduces the cost-per-unit.
7. Safety measures
Sometimes the crisis will be caused by the mishandling of equipment or materials, as well as due to sheer negligence of your employees.
In order to avoid a scenario where this becomes a serious problem or a recurring issue, what you need are some safety measures.
Training and drills, proper material handling equipment and some necessary safety procedures.
Keep in mind that this is not just important from a technical standpoint but it’s also an ethical thing to do.
8. Financial insulation
A lot of potentially dangerous situations can be defused by investing in a timely manner, which brings us to the issue of proper financial insulation for your business.
In order to do so, you need to have some funds in your emergency fund or have mechanisms through which you can acquire these funds on short notice.
In other words, the liquidity of your business matters more than you know and being able to sell assets or get a quick loan might help you in more than one way.
9. Skilled legal team
For those times when you find yourself in a potentially troublesome legal situation. Now, the majority of these scenarios get settled outside of the courtroom.
The problem is that this doesn’t always have to go in your favor.
This is why you need skilled negotiators and legal experts on your side in order to ensure that this works out in your favor.
The advisory role that they’ll assume might alone save you a small fortune and in this way more than justify the expense of keeping an attorney on a retainer.
10. Flexibility and scalability
Lastly, sometimes you need a chance to change the scope or scale of your business. Here, flexibility and scalability are your friends.
By being able to downsize your operations without having to change too much in your business, what you’ll achieve is give yourself some breathing space.
Sure, laying people off is always an option. Yet, it’s better to have a part of your workforce as part-time help so that you can eliminate the likelihood of this unpleasantness.
All in all, flexibility and scalability of your business can be achieved in a lot of ways and exploring this concept further might be a good idea.
As you can see, a lot of the above-listed is quite situational. One thing that is universally true is the fact that you might want to take steps that will make your business naturally more resilient.
Here, these 10 tips can come in quite handy.
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Diana Smith is a full-time mom of two beautiful girls interested in the latest SEO and social media news.