Small businesses face a certain amount of uncertainties all the time. As a business owner, it is hard to secure the future of your business. Developing business resiliency strategies can help your business not only survive during a crisis but ensure the success of your business.
The importance of small business resiliency strategies becomes more evident when COVID-19 hits the world. While business owners are aware of the uncertainties like finances, customer relations, or product production, most small businesses were not prepared for a pandemic like COVID 19 — not at least in the modern time.
Why is business resiliency important?
There is a thin line between the difference between resilience and survival. Survival is to overcome hardships while resilience encompasses survival. In a business context, Harvard Business Review defines resiliency as “a company’s capacity to absorb stress, recover critical functionality, and thrive in altered circumstances.”
The world is still under the COVID-19 pandemic as we head towards the last quarter of the year. The effect has changed the business dynamics and is predicted to continue on an unstable status. It will remain so as long as the threat of economic instability, social issues, species depletion, and climate change are present.
Why is a resiliency plan important to small businesses? Did you know that 25% of businesses permanently shut down after a major crisis? A business resilience strategy prevents operations from disruptions, ensures business continuity, protects the balance sheet, secure employees, assets, and equity.
Most of all, small businesses are the backbone of communities. Ninety percent of companies are small businesses and 50% of employment around the world comes from small businesses. A stronger community emerges from a pool of strong small businesses.
Developing a business resilience strategy
Perhaps COVID-19 is the ultimate reality test that proves businesses should have in hand business resiliency strategies. Unlike other disasters, COVID-19 impact is global, changing how we live. The catastrophe is far from over as experts are unable to predict when things will go back to normal.
Developing a sound resiliency plan and strategies are built upon various factors, business models, goals and targets, nature of the business, and more.
Business Resiliency for Future
If your business is still up and running, congratulations! You have one of the toughest jobs in the world. As businesses continue to withstand the burden of the pandemic, we have listed down business resilience strategies for you to create opportunities from.
- Create opportunities amidst catastrophes.
Different reputable sources’ top strategy for business resilience is to look for opportunities in the middle of a crisis. Opportunities may come in a form to reinvent or adapt. Case 1: Basically a dead brand, Old Spice missed the younger men’s market in the 80’s. The cool, macho appeal vanished and was considered a product for older generations. P&G came up with a very straightforward strategy. It targeted the market that rejected it in the 80’s.They created campaigns for the younger market by attracting healthy and cool consumers. The reinvention was successful as it is a recognized brand again. - Make technology an ally.
One of the accessible and affordable solutions businesses can use in times of crisis is technology. As the company Cisco stated: “Technology has paved the way for the birth of some of the world’s most successful companies.” Technology comes in different forms — migration of physical stores to online, new work setup like remote work, and adapting software for a more systematic method of getting things done. The possibilities are endless but one thing is true: technology is critical for businesses in responding to disasters. Technology can break barriers and connect businesses to their customers. It enables teams to connect and work efficiently. A business that has the capacity to digitally transform can deliver short-term financial gains, the Boston Consulting Group claimed. How can you determine if your business has the capacity to digitally transform? First, identify if you can support a remote workforce. If you are unprepared or find it costly, hiring a virtual assistant is a good start. Virtual assistants are experienced and trained in accomplishing specific tasks, used to remote work, and are more affordable than the regular employees. VALUE Virtual Assistants makes it easier for you to recruit, hire, and create your virtual team. Our virtual assistants can help you transform your business digitally. Our dedicated virtual assistants are skilled in their specialized fields that can be of great use in your business.We have digital marketers, content writers, accountants, and graphic designers. The VALUE process is fast and convenient. In just three steps, you can create your dream remote team.Second, pick a secure e-commerce platform. E-commerce demands drastically increased during the pandemic and are predicted to grow more. A survey stated that one in four customers is not comfortable to shop in malls for up to six months. Take advantage of the trend by choosing the right e-commerce platform. - Seek assistance.
Cash flow is the major concern of business owners to keep the business running. It is challenging enough to keep a steady cash flow in regular business days and it would be a struggle in times of crisis. With research and awareness, small businesses can find resources for financial assistance. Governments and big companies around the world provide financial aid to those who qualify. Here are some links you can visit for financial aid:- Score Small Business Resilience Program
- Covid-19 US and Canadian Financial Assistance Resources
- Covid-19 Small Business Loan and Grant Programs
- U.S. Small Business Administration
- National Business Association
- Stand for Small
- Open We Stand
For more information on financial assistance, visit Cisco for resources.
- Developed a business continuity plan.
While your business is braving the effects of a catastrophe, your business must continue its operations and provide the demands of the customers. The operation must continue or disruption may lead to profit loss or worst, customer loss. A business continuity plan highlights the following: goals and objectives, scope and policy, risk mitigation plans, details of data backups and site backups, and emergency personnel. - Remember the 3Rs: Respond, Recover, and Reimagine
Basically, this is a summary of all the strategies. Respond is how will your business react to the disaster, it involves business continuity and prioritizing the safety of employees. The Recover phase is your business’ performance despite the crisis. An indicator of recovery is when your business grows and adjusted to the new market. It is the stage when a plan is turned into actions and overcomes the challenges of the new reality. Reimagine is your plan for the future and how it will position itself and take advantage of the competition. It is how your business remains strong and sustainable in the coming of another crisis or disaster.
The current crisis has focused on the importance of resilience strategies in small businesses. It proves that uncertainty is constant in the business world and resiliency can help your company turn catastrophes into assets.
Is your business resilience? Is your business digital capable?
We can help you with the new transformation!
