With the onset of COVID and its economic consequences, businesses and enterprises from all sectors of business are having to rethink their strategies as well as how to continue daily operations.
Focusing on crisis preparedness is challenging even when things are going well, and much more difficult in the midst of a crisis. This makes it hard to devote much energy to it, but if you’re wise, you will learn how to prepare.
Strong Insurance Policies
One of the best things a small business can do to help their business withstand a crisis is purchase quality insurance policies. You probably have a few because this is what most business owners do, but there’s bound to be a few insurance policies you’ve overlooked. Cyber liability insurance is one of those commonly overlooked insurance policies.
You never know when your company could be hit by a cyber emergency or security breach. Large security breaches have cost businesses of all sizes upwards of $8 million dollars on average, especially if they not insured. Talk to your provider to see if there are any insurance policies you’re missing, and work on creating a budget that could accommodate those additional policies.
You must plan for health, injuries, and other kinds of emergencies in your place of business as well. One type of emergency you need to worry about has been highlighted under this pandemic, which seems to have no end in sight. New laws and regulations have been created to help address this issue.
As a business owner, you have to comply with rules and regulations for the good of your customers and clients. During a crisis, this has to be done at an accelerated rate. Consider working on crisis plan that addresses pertinent emergencies such as inclement weather or sicknesses while at the same time offering preparation measures such as expanded security protocols and on-site safety training for staff and leadership. What you do here not only helps keep your business safe, but you’ll also be contributing to the overall safety of your local community.
Some business owners tend to focus on one stream of income for their business, but this may not be the best strategy for protecting your business. The reality is that focusing on one source of income is like putting all your eggs in one basket. To avoid this, try to create multiple streams of income for your business. You can also remedy this problem by building other streams outside your business.
This will be helpful just in case your main source of income source falls apart. There are a few things you can do like getting a sponsor who will pay you to promote something related to your business, or you could consider investing. You should talk to a financial advisor to see what you can do to diversify your income effectively as a business owner to be more prepared for a financial crisis.
Work on Debt and Savings
Your ability to absorb whatever comes your way depends on how liquid your cash is. The problem is that most small businesses don’t think about this. You need to make sure you have a strong savings account that you can dip into if you need to.
Try to plan for a disruption that could last a few months or longer, and make sure that you deal with debt. Some business owners will tell you debt is just a part of doing business, but that’s not the case. You can work towards reducing and eliminating debt if you make a conscious effort to do so. The more debt you have, the harder it’ll be for your business to overcome a crisis.
Creating a Crisis Handbook
The next thing you have to worry about is your ability to respond to a crisis. No matter what the crisis is, you have to prepare for it. Having a detailed handbook telling you how you should react to each crisis is going to be helpful.
It’s an overwhelming moment, so people make mistakes or forget things. If you have a handbook detailing your plan, then things will be easier for you and your staff. You are going to have to create what is called a crisis management plan to address all the possible problems your business could be hit with. Once you have done this, make sure your managers are familiar with this plan, just in case an emergency does occur.
A business can be quite resilient, but only if you invest the time and effort into making it strong. All of these steps are going to take a significant amount of time, and they will cost you some money, but being prepared now will ensure your business survives later on.