Successful businesses share a few things in common. The most apparent element is that they all have a successful business model. This is evident because a successful business model is tested and proven to generate consistent revenue and growth year over year.
So, what should a business owner do when an unforeseen event or factor disrupts their successful business model and places the business in jeopardy?
Entrepreneurs are the backbone to our economy and every successful entrepreneur that I have ever known have certain quality character traits that set them apart. The most important of these traits is the ability to be resilient and to keep pushing forward with their plans and ambitions. This is important to remember because this set of character traits will be the glue that will hold everything together and provide the willingness to persevere through difficult times.
Step 1 – Dealing with disruption & crisis
When a disruption or crisis occurs the first step to take to ensure the stability of your business is to re-evaluate both the long term but more importantly the short-term goals of the business. The short-term goals will be more important in the immediate future and should be planned out as soon as possible. Short term goals should include having enough money to cover office rent, payroll, and lease on equipment or software to continue the business operations with as little disruption as possible. Deciding what are the essentials needed to operate the business during lean times will be dependent on the short-term operating capital and cash reserves that are available immediately.
Step 2 – Get a handle on the finances of the business
Understanding the pain points in your company’s balance sheet is a good place to begin. The main focus should be on accounts receivables and doing everything possible to protect your ability to make sales or generate revenue. If you know that there will be a significant reduction in short term revenue, then examining the liabilities of the company is important because cutting any unnecessary expenses will slow the bleeding. The most important exercise in this step is to discover what your company’s break-even point is and to estimate how long the business can be sustained to float above water.
Step 3 – Examine the assets and resources that are available to your business
There are other companies facing a similar situation to yours. If you use an outside accounting firm to file your taxes, it would be wise to consult with them and ask how widespread the economic disruption is. Then discuss what credits, loans or grants are available through the government and banks. During uncertain times, your business should use all the financial tools and resources that are made available to its advantage.
Step 4 – Spot opportunity
During every crisis there are opportunities. Spotting opportunities to make your business stronger and more resilient for the future is an exceptional task. Great entrepreneurs understand that nothing remains without change. Spotting the opportunity to make important business changes is what creates successful entrepreneurs. A Disruption to business operations has an evolutionary effect that will cause a business to make changes in order to adapt to the environment, or it will die. If your business relies on a steady stream of face to face sales, then the adaptation of new technologies to support your customers is one of the best evolutionary examples that I can think of.
Online technologies that are cloud based will make your business foundation a lot stronger. There are numerous collaborative software solutions available that can help your business communicate with the use of online meetings between employees and clients. Maintaining the ability to communicate effectively, weather internally or externally, is an essential business process. Companies that support the use of screen sharing, e-signature contracts, and online meetings have an easier time communicating and making sales from whenever and wherever they are. Having the right online tools are important for your company’s survival in tough times. A good web presence should never be discounted and should always be a focus of improvement. In difficult times, a strong online presence can make a substantial difference by creating a steady stream of online leads and sales to keep your business ahead of the competition.
We Want To Help Your Business
Steering the ship through rough waters and growing through adversity is a tremendous burden for a lot of entrepreneurs. RankWorks wants you to know that we are here to help and answer any questions that you might have about operating your business online. We are experts at building strong web presences and online sales funnels for thousands of small to medium size businesses. We can help your business focus on web design, online advertising, social media management, online retail, and lead generation. Our Website as a Service (WaaS) program was developed specifically for small and medium size businesses to stay current with their web presence. WaaS is a monthly plan that covers the design, development, hosting, maintenance and periodic updates that every website needs. The best part of this program is that every two years, in order to remain current, RankWorks will redesign a brand-new website for your business at no extra cost! That’s right! A brand-new website every two years for free! Just as Microsoft moved their core products to Office 365, and Adobe to Creative Cloud, we’re revolutionizing brand placement on search engines.