Rethinking Business Resiliency During Challenging Times
We are living through multiple disasters at once. Although we all feel their impact, everyone has responded differently. Why is it that some businesses struggle to pivot while others have seemed to adapt easily and even thrive?
To examine business resiliency more closely, we sat down with Clare Briglio, Communications and Business Disruption Resource Director for the Economic Development Collaborative based in Ventura County. Clare shares five tips for business resiliency, which we summarize below.
1. Manage your energy, not your time.
In the face of challenges, many business owners respond by working longer hours in order to get the job done. The problem with this approach is that it is unsustainable – it inevitably depletes your energy and leads to burnout. Of the thousands of business owners Clare has worked with, this misalignment of where businesses focus their energy is the number one challenge she has observed.
Managing your energy and connecting it to your passion or purpose will have enormous returns on your output. The concept of energy management comes from this Harvard Business Review article. Your time is finite but your energy is renewable. Pivot your business model toward the people, places and activities that energize you.
Business owners that see an opportunity and harness their energy and drive to respond to the challenges in front of them are more likely to innovate and succeed in the long term. This simple shift in mindset will help you reach the next level of your business.
2. Create solutions rather than waiting for them to arrive.
Resilient businesses are quick to accept the challenge in front of them. Rather than waiting for someone to come and help, they go out and create the solution. Oftentimes, these business owners lack the time to develop an exhaustive business plan or perform trend analysis before jumping into action. Instead, they use their problem solving skills to tackle their immediate need. Resiliency begins with your mindset.
Clare shared an example of a business owner who, following a wildfire, stepped up as a community leader. Since her local business group was not playing a prominent role in the recovery process, she decided to convene business owners in the back of her restaurant herself and quickly connected them to the resources they needed to survive. Instead of waiting for help, she found a way to help local businesses help themselves.
3. Embrace evolving business lifecycles.
Death and rebirth can happen multiple times to a business’ products, operating models, leadership, branding, and more. Many businesses stifle their own potential by resisting necessary change, making it tougher to pivot. When we can accept these changes as part of a natural cycle, we are less likely to resist or mischaracterize them.
What one business owner might perceive as a failure – removing a low-performing product line, for instance – another might view as the perfect time to shift toward emerging areas of opportunity. Clare advises that despite the inevitable challenges, it’s important to continue embracing change in order to help your business reach its full potential.
4. Ask for support when you need it.
Everyone responds to a crisis differently. Your response is informed by the nature of the disaster itself as well as your personal experience with traumatic events in the past. It is very common for those going through disasters to experience fear and feelings of inadequacy. Even though many disaster events take place within a short time span, the recovery process is a much longer one.
To help you through the recovery process, lean on trusted friends, family, or advisors. Part of rebuilding involves technical assistance, confidence building, and mentorship. At the individual level, resilience includes one’s physical, emotional, and mental well-being. Asking for support allows you to take a breather and can help to remove the burden of needing to have all of the answers.
5. Get your financial house in order.
Disasters reveal and exacerbate problems that already exist. In her work with businesses impacted by COVID-19, Clare found that most of her clients lacked a strong financial foundation. When disaster struck, they were ill-equipped to weather the strains on their business.
When it comes to knowing your finances 101, Clare recommends focusing on three key areas:
Understand your cash flow. Learn how to read financial statements, check your account balances on a regular basis, and be strategic when it comes to taking out and paying off loans.
Understand your supply chain. This will allow you to be more strategic in responding to disruptions to each business process.
Set aside money for savings. Start immediately and make it a priority.
Conclusion
During times of uncertainty and change, it can be tough to know how to best adapt. Without a solid plan in place, businesses can easily slip into financial distress and burnout. Luckily, there is an entire network of advisers, government agencies, and nonprofit partners here to develop that plan today. And by following these five tips, you will be well on your way toward building a more resilient business.
