In the fall of 2019, news of a deadly virus began grabbing our collective attention. At the time, most of us had no idea of what was coming. Today, we’re still feeling the impacts of the pandemic. Businesses of all types were hit hard and had to pivot to respond to what can only be called a transformative crisis.
Fortunately, many of them were quite successful. There are so many companies that stand as examples of resilience, innovation, and compassion. They made it clear that businesses can survive the worst ordeals.
Throughout all of this, our goal has been to help employers continue to succeed in their efforts to build and retain the talented teams that are needed when a crisis hits. We’ve learned quite a bit over the two years as well. One of the lessons we have to pass on is how to scale your business when a crisis hits.
Identify Who You Can Help
Consider the crisis you are facing and the consumers and businesses that are being impacted. Can you help them? How can you help them? It may be time to scale up to meet those needs, create new client relationships, and work to solve the problems the crisis has created.
Just consider what happened during the pandemic. There was a sudden and intensive need for PPE equipment, medical supplies, cleaning and sanitation supplies, home delivery services, and technologies that allowed for virtual working and learning.
Companies that offered these products and services had to quickly scale to meet those needs. Other companies added new products and services.
Of course, this requires a company culture and infrastructure that allows for innovation and creative problem-solving. It’s highly unlikely that a business will be able to scale up during a crisis without those things in place.
Simplify and Automate Cash Flow
When you are in the midst of a crisis, cash flow may become an issue. Consumers tighten their spending. Business clients may be slow to pay or simply have to stop doing business with you entirely. That’s a tough predicament already. Don’t put yourself further into the hole by causing additional cash flow issues.
How easy have you made it for customers or clients to pay you? Have you been slow to adopt ACH (automated clearing house) payments, digital wallets, or other methods? Now is the time to take steps to make paying you as simple and easy as possible.
While it’s important to approach this with a certain amount of finesse, it may be appropriate to ask clients for a large deposit in advance of doing work for them.
This approach is acceptable for new clients who don’t have an established payment history, large contracts with a significant price tag, or work that would require you to go into your own pockets to complete. A professional will understand your cash flow needs and see this as an opportunity to create a positive relationship with you.
Go Remote
During the pandemic, businesses went remote to prevent the spread of a dangerous illness and avoid taxing resources that were already at their breaking point. That was the socially responsible thing to do, but there are other reasons to go remote during a crisis.
First, by going remote, you can significantly reduce your overhead costs. You also offer staff members who are likely to be stressed and overworked a perk that gives them flexibility and a decidedly more comfortable work environment.
That’s important when a crisis means you are going to be asking for more productivity, longer hours, and innovation from your team.
Of course, just going remote is more complex than it sounds. You have to have the technologies in place. It also takes effort to create a remote work culture that is supportive and cohesive.
Reconsider How and Where You are Spending Money
A transformative crisis can and should disrupt your financial plans. That doesn’t mean you have to abandon all investments, future planning, or growth-focused spending. However, you may have to put the brakes on some things to get through the crisis right now.
For example, many companies realized that the time wasn’t right to break ground on new office complexes or sign long-term leases in expensive office parks during the pandemic. Instead, they invested in technologies to support remote work and give resources to ensure the comfort and safety of front-line workers.
Prioritize investing in technologies and resources that help you weather the crisis. Don’t be afraid to delay spending that is no longer prudent.
Don’t Panic if Results are Not Ideal
Not every business is going to emerge from a crisis with more revenue, new customers, and unprecedented growth. Any particular crisis more negatively impacts some more than others. It’s not a failure to emerge from an event like the pandemic showing a loss. The truth is that simply surviving is a victory.
Prioritize maintaining a supportive and nurturing culture, using technologies to help adapt, and ensuring your staff has what they need to innovate. Even if you suffer some negative outcomes, this will create the resilience you’ll need for a solid comeback.
Accept a New Normal
Don’t dig your heels in and attempt to maintain the status quo. Whether you decide to use a crisis for growth or choose to scale your business down, accept that things are going to change. This acceptance will allow you to focus your thoughts and actions on things that bring fruitful results.
