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Don't wait for the storm: Why crisis planning is your smartest move
Running your own business is a thrilling ride, but it comes with its share of unexpected bumps.
Female entrepreneurs are often juggling so much that the prospect of adding ‘crisis planning’ to the list might feel overwhelming. But it’s one of the most empowering things you can do for your venture.
Think about it: how often do we see businesses, big and small, facing challenges that seem to come from left-field?
From a social media storm to a supply chain hiccup, things can always go sideways.
Brisbane crisis strategy and resolution expert Sally Branson, of The Sally Branson Consulting Group, says anyone who has ever picked up a newspaper knows bad things can happen.
So there are no excuses not to be prepared.
Three types of crises
Crises can sneak up on you in different ways — and they will impact every business differently.
Branson says there are three types of crises.
The ‘overnight crisis’ hits suddenly and unexpectedly. Think natural disaster or sudden death. But the two more frequent crisis scenarios are the ‘creeping crisis’ and ‘slow-burn crisis’.
A ‘creeping crisis’ can start small, such as a few negative online reviews that point to a larger problem, and can snowball if not caught and remedied early.
A ‘slow-burn crisis’ will give more advanced warning, giving you a little more time to prepare. Branson explains: “Perhaps your finance manager has embezzled $4 million from a charity. That is something that you know about beforehand because there's probably a criminal investigation, lawyers are involved, media is involved. You've got a long lead time to prepare for that. So there should never be any excuse for not being prepared for crisis.”
Recognising the various forms a crisis can take is essential for businesses to be adequately prepared and responsive. Knowing what might be coming down the line is half the battle.
A crisis plan will give you a roadmap when things get tough. It helps you protect your reputation, keep your business running smoothly, and even boost your team’s confidence.
“As entrepreneurs, as business owners, crisis planning is really good and exciting. There is no better opportunity for growth if you’ve done the work beforehand,” Branson says.
“It might not sound like fun, but knowing you have a plan in place can actually be incredibly reassuring.”
Where to start?
Branson suggests starting by assessing your vulnerabilities.
“Recognise what your issues might be. What is a crisis to you?” she says.
This will differ depending on your business and your relationships with your consumers or clients. It could be a touchpoint problem, an influencer going rogue, or a cashflow issue. Consider what will move that problem from an issue to a crisis.
The crisis management plan
Then, plan with contingencies. Develop a robust crisis management plan that outlines specific actions to be taken in various crisis scenarios. Think through different ‘what if’ situations and how you’ll respond. Don’t forget to think about who your audience will be in each scenario and the best communication channels to use to ensure you’re keeping the right people informed as your business works through the crisis.
Ultimately, having a crisis plan isn’t about being pessimistic; it’s about being prepared and resilient.
“For some businesses, a really big crisis won’t dent them because they’ve built up love, they’ve built up relationships, and it doesn’t dent them,” she says.
“And you think ‘Why are these people Teflon?’ It’s because of the work they’ve done to prepare for that crisis.”
The best thing you can do is take control and ensure that when the unexpected happens, you’re ready to navigate it with confidence.