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Business Crisis Management and Emergency Planning

Provided by SME Solutions Center - Kenya

Implement Crisis Intervention Measures

Usually unexpectedly, your business could be hit by unforeseen events. In such situations, crisis management expertise is needed. Key elements to successful tackling of unfavourable happenings include:

  • Steady preparedness
  • Flexible planning
  • A can-do attitude

These traits will enable you to salvage your business’ performance after short-lived declines.  

Crisis Factors

Major situations which could occasion turbulence in business performance include:

  • Start-up hiccups
  • Economic slumps   
  • Problems handling recurrent expenditure  
  • Unexpected sudden growth

Start-up Problems

The launch of your new business can prove very challenging and messy. Key trouble spots include:

  • Product flops
  • Financial constraints
  • Managerial deficiencies
  • Business model failures

Your proactive intervention can save your business. The foregoing recommendations will help you to successfully wade the start-up tide.

Business Model Flop Glitches  

Carry out a fast business model review and adjustment exercise.  

Money Shortage Allied Problems

You can detect impending cash flow constraints early in advance if you maintain clear and accurate cash flow records. A crisis management plan will enable you tackle arising problems.   

Poor Management Related Problems

The services of qualified managerial professionals could help avert management glitches at start-up.           

Product Performance Related Problems

Services or products that do not satisfy intended market needs could cause problems for start-ups. You need to execute necessary product adjustments so as to manage such problems.     

Financial Recessions

Economic slumps are a common reality in our globalised world. To prevent complete or devastating business slowdown, you need to take certain solid steps such as:

  • Candidly informing employees of current fiscal constraints so as to preclude miscommunication and possible employee attrition
  • Re-evaluating and instituting relevant changes to your business model
  • Implementing cost-reduction strategies while preserving product quality
  • Liaising and communicating with your customers about their preferences, aspirations, and needs; making relevant business modifications
  • Implementing short-lived modifications that safeguard employee welfare after consulting with staff     

Meeting Recurrent Expenditure   

Sometimes, you may find it hard to settle all your bills. This situation threatens your business’ financial health and could hurt your relationships with creditors. Certain strategies could however successfully see you through. When faced with such a situation, you could:

  • Request your regular, long-time creditors to extend your credit period
  • Negotiate for instalment debt-repayment terms with  your creditors
  • Prioritise debts so as to first settle those whose defaulting would severely hamper business operations   

Unexpected Business Growth 

Paradoxically, abrupt expansion introduces complications in business performance. This fact calls for the application of mitigation measures whenever your business experiences sudden growth. You could:

  • Properly conduct research and undertake long-term planning, thereby foreseeing and timely planning for anticipated fast growth
  • Instituting matching record-keeping strategies and infrastructure
  • Speedily seeking out expansion finances so as to evade detrimental pauses in business activities      

Your business’ smooth environment can be disrupted by a number of unforeseen developments. These events pose stability threats to your business. Emergency planning will enable you to successfully tackle any arising problems. Common causes of disruptive changes include; sudden growth incidences, start-up impediments, bill paying difficulties, and economic recessions. Proper crisis management is needed in such cases.  To successfully manage these challenges, you need to exhibit a positive attitude and unwavering preparedness. Such attributes will enable you to adopt as flexible planning approach. Mitigation measures encompass setting up proper crisis prediction systems as well as tackling the actual emergency.

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