How does a small business owner go about rebuilding after their store suffers severe damages from a natural disaster? How do you handle an unexpected financial, reputational or cybersecurity emergency?
No small business owner wants to think about any of these nightmare scenarios. Yet, they must consider these situations and others before, or if they ever happen.
That means crafting a solid crisis management plan before your doors open for business. Preparing a strategy at the ready to effectively handle any number of predicaments, rather than reacting to a crisis after the fact, could easily mean the difference for a small business between recovering from a dilemma or closing its doors for an extended time, if not for good.
Small businesses are especially affected by catastrophes. They almost certainly will not have the financial resources or as comprehensive insurance policies as large corporations or even mid-sized businesses.
So, where to begin when drafting a crisis management plan?
The first step is identifying risks that could badly hamper your business. Once you have pinpointed the most likely disruptions, it’s time to consider how to mitigate would-be damage. A crisis plan is a playbook and should include contingencies when your ideal strategy would not address the specificity or scope of the event.
Small business owners may want to consider delegating responsibilities to team members to address possible grim realities. You need to reach a comfort level with staff so that you can provide them with emergency contact information, whether it be with suppliers, insurance representatives or other important players in your business. If every staff member is prepared to spring into action in a specific role, it will help for a more streamlined and less chaotic response.
Ultimately, it is the store owner that must take the lead and provide guidance to staff. A carefully prepared strategic plan allows you to make competent decisions quickly when time is at an absolute premium. Be transparent. Do not put on a happy face and mislead people as to the dire urgency of the situation.
When building out a budget before the first customer walks in your store, be sure you have a sufficient, rainy-day fund and resist the temptation to mine it for non-emergency purposes.
In the storm’s aftermath, recovery will be first and foremost on your mind. At the same time, it is vital to contact your customers, even if it means answering a slew of emails or sending out a blast email to update your loyal patrons, even after a particularly rough day.
Many of your loyal customers, and the larger community, want to pitch in, be it monetarily or volunteering, to help with the grunt work of gutting and cleaning the store, and helping to rebuild.
You will likely be very moved by the outpouring of support. Whether you are rebuilding from the start or keeping the business open in a limited capacity, a crisis management plan is essential to navigating the road to better days ahead.
