When a recession starts to improve or you have made the necessary adjustments to survive a business crisis, don’t let yourself slide back into trouble. Part of this is just paying attention, sort of like the Woody Allen quote that “90% of life is just showing up.” But, a better approach is to fully understand how the crisis happened and how the measures you took helped or hurt. Then the most critical step is to set up effective business processes to keep track of the issues that got you in trouble in the first place! Here are a few ways to keep from falling back into a business crisis.
Successful business crisis management requires an evaluation of what caused the crisis and your part in causing it. A global recession is not your fault but failing to prepare for a business downturn is on you. The same applies to the current global pandemic. If you had used the Profit First system for better budgeting, cash flow management, and savings, you would likely have been in better shape going into any business crisis. If you had used the Fix This Next method for ferreting out business problems, fixing them, and keeping them fixed, you would not only have been in better shape going in but would also have the necessary systems to in place to help you effectively manage a business crisis.
If you do not have these systems in place or do not know how they would help, take a look now at the role of Profit First in managing a business crisis and the role of Fix This Next in managing a business crisis.
If you are now, hopefully, emerging from a business crisis, what should you be doing?
When sales and profits start to return after a business crisis, it is tempting to heave a big sigh of relief. However, when memories are fresh, this is exactly when you need to look back on the problems you confronted, how effectively you identified them, and how efficiently you dealt with them. To the extent that pre-existent issues predisposed to more trouble during a crisis, now is the time to use a system like Fix This Next to institute permanent solutions with tracking systems that help keep these problems from returning.
When a crisis begins to wane is an excellent time to evaluate how the economic conditions of the crisis affected your business niche and what opportunities may have emerged. You may be pleased to find that the lessons that you learned dealing with the business crisis have given you tools that will make your business more efficient, effective, and competitive going forward.
Situations like the current coronavirus pandemic are characterized as once in a century occurrences. However, there were business issues before the pandemic like the trade war that hurt farm sales, the high value of the dollar that hurt exports, and the ever-present problem of investing in business expansion only to be undercut by market changes. In the case of the current virus, it is not clear how long it will last and how long its damage to the economy will persist. Working with an established accountant and business coach like Exigo Business Solutions, the top accounting firm in the Kansas City area, will help you make the right financial decisions as your business emerges from the crisis.
Sound planning is always an integral part of a successful business and at no time is it more important to use tools like Live Plan to establish and maintain a sound business plan for now and the years to come.
If you are dealing with a business crisis and could use a little help or if you are interested in learning about how tools like Live Plan, Fix This Next, and Profit First can help your business now and in the coming years, contact us at Exigo Business Solutions for help.