Business crises can come out of the blue and destroy years of effort and your dreams. Understanding the nature of your business crisis and the most appropriate responses is vitally important. All too often business owners experience a “flight or fight response.” They narrow their focus, miss the critical issues, fix the wrong things or throw in the towel when recovery and ultimate success are just around the corner. The most common business crises are tripped by an economic downturn such as a stock market or housing market crash as in the 2008 Financial Crisis. But totally unexpected events such as the current Covid-19 worldwide pandemic can erase your earnings, destroy your credit, and threaten the life of your business. How to survive a business crisis is to understand the nature of such occurrences and have expert advice as from a Fix This Next coach in order to take the right steps in the right order.
This diagram is a useful guide to getting your head around any business crisis and taking the right steps at the right time (usually right now).
As the diagram indicates, the usual first response to an expected crisis is shock. Sadly this happens too often and lasts too long resulting in a “deer in the headlights” lack of response and that inaction quickly leads to a business collapse.
Desperation is also common when a crisis threatens to destroy your life’s work. Here is where being able to quickly and effectively wrap your head around the problem is critical. Take the wrong steps, especially big ones can also lead to the collapse of your business.
Businesses that already have a Fix This Next coach will be much more ready for any crisis because they have already dealt with issues of sales, profit, and organization.
If this is the case, you probably have systems in place that will guide you very quickly to the right steps in the right sequence. This is the evaluation phase of the diagram. As the diagram notes, here is where the right steps start you on your way out of the crisis and even tiny but wrong measures, repeated, lead to the eventual collapse of your organization.
If you are looking for someone to guide you through the current crisis, contact us at Exigo Business Solutions. As the top accounting firm in the Kansas City area we can help you through the current crisis and help fine tune your business so that when you have recovered you will be on the road to consistent and stronger profits using Fix This Next and the Profit First system.
The kinds of things that you need to do include shoring up credit, cutting costs, and at the same time boosting sales and retaining your skilled workforce. Knowing how to deal with debt payments during a crisis is important. The quicker you correctly evaluate the situation and take firm and effective steps, the faster you will be on your way out of the crisis. As we noted, businesses that have their “house in order” are more likely to respond quickly and effectively. And, businesses that get their “house in order” by using an approach like Fix This Next will be more likely to thrive in the weeks, months and years ahead. Using this approach you will put into place effective business systems that help.
If your business is mired in a crisis and you need help, contact us at Exigo Business Solutions today.