How to protect your business in times of crisis?
Keeping the company afloat and functional is not plain sailing, neither it is in times of crisis. Market fluctuation can negatively impact all types of ventures, while it can lead to a new turn in development. Projecting crisis at sea – the risk can arise both during the storm as well as during the calm. But all managers must foresee it and observe the ways to go through it.
There is no user guide or workbook to lead you, but still, we have some strategies that can come in handy on the way out.
When everything is getting out of control, people tend to grasp every challenge and intend to solve it. Although it seldom may bring success, in turbulent times companies should apply more strategic approaches. Experienced crisis managers advise you to do a thorough observation of your venture and detect processes that still function and those seeking the change. Gathering a group of experts and managers and determining the strengths and potential risks of the business may evolve into an advantageous strategy.
In case your examination found the section causing fallacies to the whole project, the task is to overlook the whole chain in order to catch the factor stumbling the process. Firing workers is not the option, apparently, the system should be reorganized or a series of additional training conducted. Since you decided to be economical and cut funds, you should consider hiring even more costly workers on the condition of evaluated productivity value. If this worker shows 40% per cent higher results, an additional salary can add to the productivity. A company’s owner should check all departments of their venture and evaluate the advantageous sides of each worker. Those employees who do not comply with the current and future demands must be directed to the other branches.
The same strategy could be implemented in your product examination. Set a goal to analyze the correspondence of your product to the market at this point and based on these results predict the substitutional routes for the venture.
At this stage owner must be on guard of the workers, be concerned in the protection of their rights and establish steady functionality, providing them with all necessary materials. Lots of ventures opt for offline-online swaps in terms of crisis. Apart from the numerous benefits, it can add to the process, managers have to take charge of supplying workers with a technical base. It entails mostly administrative and technical issues to fix. It is advisable to create a so-called anti-crisis workgroup of specialists to accelerate the process and develop the work-from-home technology, adjusting it to your company.
Having found the solution to problems with facilities, special attention must be paid to the emotional bond with the personnel. Community management, staff meeting and other techniques on the verge of psychology and management can maintain the resilience of the workers and stable development of the company. People must be aware of the current situation in the company and build a collaborative team despite all troubles.
Another good option for managing your staff in crisis is to hire Dedicated Team for fulfilling specifics projects instead of employing workers. It can decrease employment funds, reduce risk of prolonged terms of product launch and enable your company a stable development even in extreme times.
Entrepreneurs at risk of cash problems or cur funds should test the waters of the bank system. It is necessary to book a consultation with an experienced banker who can provide a guarantee of crediting or at least give recommendations on how to avoid the shortage of finance and obtain a loan. You should check whether your government introduces a loan system, aiming to balance economic swings. In case so, the application must be delivered without delay. This type of loan is targeted to cover the payroll and main funds of the company in difficult times. Frequently it can include forgiveness of payroll proceeds, mortgages, renting and facility funds. However, the figure for not forgiven loans is to be clarified by every economic system. Reaching a high level of team cohesion may be ended up by obtaining the loan, as it meets costs of not only payroll but also vocational, medical payments, as well as sick and maternity leaves. Another point to be discussed with your banker is the possibility to receive a grace period for other loan payments.
A useful strategy for the hard period is analyzing your current marketing strategies and making up the new ones. This will add to the level of your sales or helps to change the priorities of the promotion. At present, the special attention of market managers is drawn to an interactional and competitive branch of marketing. The first concern of the company is to satisfy clients’ needs, consequently, when needs change as a result of the crisis, owners should switch their focus to care and support.
Finally, hardship comes to test the personality, if your company proves itself as a reliable and compassionate group of specialists, both employees and clients will remain favourable and aid in the further development of your venture.
Empower your best professionals, empower new opportunities and your company will withstand every storm. Together we are strong!