There’s no preexisting manual available for businesses who are learning to deal with the evolving economic disruptions associated with COVID-19. Companies both large and small are doing their best to adjust to new routines, navigate economic uncertainty, and stay connected at a distance. Crisis management skills that had once laid dormant are quickly emerging as companies are grappling to manage the impact of the outbreak.
With the disruption of supply chains, travel restrictions, less consumer spending, and other unforeseeable changes ahead, businesses must take immediate action to mitigate the short and long-term results of the global pandemic. The problem is, it can be difficult to predict how this storm with playout. However, if there’s one thing we can control, it’s how we respond. In today’s blog, I’m going to give you three helpful tips on how businesses can respond in times of crisis.
How Can Businesses Successfully Function During A Crisis?
Locate Strong Leadership
There is a communal understanding that employee health and safety must be the first and foremost consideration of any business during this pandemic. That is essential and above all. That’s why strong leadership and management is a crucial force during this time. Through leadership, people become unified and resilience is built. And through management, sustainable systems are established. Company leaders have had to work tirelessly to develop practical solutions, strategic shifts, and new innovations as a result of the pandemic. Right now, we need smart and value-driven leadership and management more than ever. If you’re a business leader, this time requires you to be adaptable to rapid change.
This might mean changing pace and crafting an organization chart, reworking the primary functions of your business, or making an entirely different business plan for the upcoming months. Whatever you do, communication is key. Once you land on a plan of action, leverage your team by looping them in. Together, you can align your ideas and merge priorities. Now is not the time to fear over-communication. Utilize video conferencing and chat rooms, and research the best ways to manage remote teams. Above all, take care of yourself. We’re all humans who at the end of the day need healthy food, exercise, and sleep. While it’s important to make the future of your business a priority, it’s just as important to prioritize personal care and your well-being.
Rework Financial Plans to Ensure Business Continuity
As businesses are reshaping their short and long-term plans, there are a number of key financial issues to consider. Corporate leaders should determine how the crisis affects financial budgets and be proactive about preserving business continuity. This might mean completing the stress-test on different financial plans to see the potential effects on financial performance. Maybe it means looking into debt refinancing, seeking out policy support from the government, or considering alternative supply chains.
Every business is different and their response will be unique depending on their circumstances. But if one things for sure, it’s that rapid decision making and planning are essential. If you need to revise financial plans to protect cash flow, then I encourage you to take the necessary steps and be adaptable. You may even want to look into alternative revenue streams. The best way to manage a crisis is to stay ahead in the game. As you look ahead, consider these ten questions from EY. You can use them to evaluate the strength of your crisis management systems.
Ten Questions to Ask
- How will your organization ensure the well-being of your people and the safety of your productive assets in the event of a crisis?
- How can you ensure sustainable financing and stable cash reserves?
- Are there well-coordinated and standardized communication systems and protocols to ensure clear and transparent communication with all stakeholders?
- Does your organization have crisis management teams to manage short-term liquidity impacts and initiate appropriate countermeasures?
- What model do you have in place to assess potential risks and define responses in the event of a crisis?
- Have you considered the impact of a crisis in the budgeting and business planning processes, and implemented early warning mechanisms?
- When a crisis has significant financial impact, how can you adapt your business model to reduce costs, both in the short and medium-term?
- How will demand disruption impact you and how will you recover from its aftermath?
- Have you defined supply chain and production risks that crises might pose and what you could do to mitigate those risks?
- Is your business model resilient enough to recover from the impact of a crisis and manage potential crises in the future?
You may feel inclined to resort to a feeling of helplessness during this time. I don’t blame you, we are living in an unprecedented time filled with fear and uncertainty. However, we can find comfort in knowing that our God is good. He is benevolent, even in times of crisis. As His faithful stewards, we can pray that His heart of love, His mercy, and His truth guide us as we face new challenges. We can continue to uplift those who are most affected by the crisis in prayer.
Philippians 4:6 reads, “Do not be anxious about anything, but in every situation, by prayer and petition, with thanksgiving, present your requests to God.” Turn to God for protection and add prayers of healing into your daily routine. If your Church offers online services, I encourage you to take advantage of them. Ecclesiastes 3:1 says, “To everything there is a season.” Remind yourself that this too is just a season that will pass.
Navigating the New Normal Livestream
For the past three weeks, Becky and I have been going live on Saturday’s to offer strong words of advice pertaining to business, real estate, the stock market, and our current economic situation. We are so thrilled by the positive response that we have decided to offer a free livestream every week! We believe it’s very important to share knowledge and wisdom with each other during this time. With that being said, encourage you to keep bringing your business, real estate, and other questions to the comment section. If you want to catch up on previous livestreams, all you have to do is visit my YouTube channel. To watch this week’s livestream, navigate over to the wealthbuilders.org homepage to register or tune in through my Facebook page. Becky and I look forward to speaking to you again this week!