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As companies proactively adjust their business operations in the wake of COVID-19, there are few things to consider in regard to crisis management. All businesses should have a crisis management plan in place to assure their success regardless of the unforeseen circumstances that may arise. Here are a few steps to take to create success in tough times:
Prioritize employee well-being. Having the best employees in place will benefit your company immensely. You must act in the best interest of your people if you want them to stand by you during tough times. Retaining good talent that is excited to work and keep your company running is invaluable. Identify the best working environments for your employees, and help make any transitions as easy as possible.
Don’t forget to communicate! Transparency is key in most successful businesses, especially when stress and anxiety are heightened. Employees, customers, and stakeholders need constant support and communication. If you are unable to meet contractual obligations, allow your clients to make negotiations and revise their contracts. Be as proactive as possible to maintain good relationships with both clients and your suppliers.
Be conservative with your spending. Take a critical look at your budget and your cash flow. Conduct various stress tests to help guide you on where to limit spending and where to increase spending. Consider where you can reduce operating costs and how limited nonessential expenses will affect your company. Try our Cash Flow Forecaster to help see where your company is headed, and where you can cut costs to stay afloat.
Find potential supply chain disruptions. There will likely be some kind of supply chain disruption during the coronavirus pandemic. Companies with suppliers who operate out of foreign countries will likely see supply chain disruptions. If you experience a supply chain disruption, maintain communication with your supplier, while also considered alternative ways to complete your supply chain.
Lastly, always be prepared for the unexpected. Anything can happen during these times and legal roadblocks are among the most disruptive. In order to prepare for these unexpected situations, companies should conduct risk assessments, find preventative measures, and manage potential contract disputes.
In order to survive these challenging times, we are going to need to work together. At TGG, we want to help your company get clear on their future business plans, contact us for your free 15-minute evaluation.
This post was reviewed by our team of accounting and financial experts. TGG’s mission is to make business owners’ lives better through excellent financial management. We strive to provide the most up-to-date and objective information on accounting-related topics so our readers can make informed decisions based on factual content. All posts undergo a review process with at least one member of our Leadership Team to ensure accuracy.
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Matt Garrett is the Founder and Chief Executive Officer of TGG. He is a regular speaker across the country on behalf of Vistage educating business owners on the need for sound financial practices, and is Vice President of the Board of Directors of FINACA. Under Matt’s leadership, TGG has received the following recognition: INC. 5000 top companies in the U.S. five years in a row; one of “San Diego’s Fastest Growing Companies” the past four years; and is among San Diego’s “Best Places to Work.”
