Why Crisis Management Matters
Crisis management isn’t about waiting for the storm to pass. It’s about knowing how to steer your ship when the waves hit hardest. Let’s face it—stuff happens. Covid, recessions, leadership shake-ups, cyberattacks… They don’t send warning letters. They crash through the door when you least expect it. So, the question is—are you ready? Here’s how to crisis-proof your business, protect cash flow, and keep shareholders confident when the unexpected happens.
The Importance of Strategy and Communication
Building a business is hard. Keeping it alive during a crisis? That’s next-level leadership. First things first—get your strategy right. No one likes surprises—least of all your future potential buyers, investors, and team. Keep them in the loop. Trust is your best defense when things go sideways.
Lessons from Close Protection: Anticipate the Threats
I used to serve in the Royal Military Police, working in close protection. In that role, we didn’t just react to threats—we anticipated them. Crisis management was about reading the situation before it turned dangerous and having protocols in place to handle whatever came our way. The same principles apply in business. You don’t wait for a crisis to strike before you prepare. You plan, train, and adapt.
Flexibility and Resilience: Preparing for the Unexpected
Situations change fast, and flexibility is key. So STOP and think this stuff through. In business, if you’ve got all your eggs in one basket, what happens when it drops? Spread your risk. Build resilience. You wouldn’t buy a house without insurance. So why run a business without a plan for worst-case scenarios? Prepare for leadership changes, market shocks, and operational disruptions.
Keith Cunningham, who I find incredibly inspiring, always talks about, ‘What can’t you see?’ and ‘What assumptions are you making?’ These are the things that are going to come and take you off at the knees. Entrepreneurs are naturally glass-half-full people, but you need to put aside, as Keith says, “Thinking Time” to address the other side of the coin. Let’s look at some examples to get you thinking.
Succession Planning and Keyman Insurance
Think about your business right now. Who are the key people you rely on? What would happen if they weren’t there tomorrow? If that thought makes your stomach drop, it’s time to act.
People leave. It’s life. But when a key player leaves suddenly, it can throw your whole business off balance. Succession planning for your team isn’t a nice-to-have—it’s a must. Who steps up if a key member of the team exits or becomes seriously ill? What’s the plan to keep things running smoothly? Essential parts of this process are securing keyman insurance and consistently building a ‘bench’ of people you know would be interested in joining your team.
Buyers need to know that your business isn’t overly reliant on any one person. Keyman insurance provides that assurance. It’s a policy that compensates the company financially if a key individual—like your MD or lead technical expert—leaves unexpectedly or is no longer able to fulfill their role because of a serious illness. In exit planning, this becomes an even more critical factor. Perceived risk erodes business value, and nothing signals stability to a buyer like a business that can weather the loss of key personnel without missing a beat.
Safeguarding Data and Building Leadership Resilience
Your business runs on data. It’s the lifeblood of your operations, from customer insights to financial records. But if it’s not protected, you’re a sitting duck for cyberattacks that could cripple your business. Implementing robust cybersecurity measures is no longer optional—it’s essential for protecting your business from internal and external threats. This includes regularly updating systems, conducting penetration tests, and having a clear incident response plan.
Scenario-Based Training: Preparing for Worst-Case Scenarios
Scenario-based training can help. Incorporate simulations of sudden team exits or market downturns into your leadership programs. Develop quick-thinking and adaptability by running through worst-case scenarios. Encourage leaders to create contingency plans for key roles and operational continuity, emphasizing the importance of communication and financial safeguards like insurance to maintain stakeholder confidence during crises.
Confidence and Preparation: The Foundation of Crisis Management
When things fall apart, you need a plan. In the field, we always ran risk assessments before every event. It wasn’t about being paranoid; it was about being prepared. Know what could go wrong before it does. Establish clear response protocols for different scenarios. Designate roles so everyone knows their job in a crisis. Silence is deadly. Keep people informed. Safeguard cash flow with pre-approved financial backup measures. As a business owner, this is on you. You’re the captain. Lead from the front.
In a crisis, confidence isn’t just nice—it’s necessary. And it starts with preparation. Regularly update your crisis management checklist. It’s your first line of defense. Losing a key player is costly. Protect your business with insurance that covers recruitment and training costs. Keep your investors, board, and partners in the loop. If they’re confident, your team will be too.
Crisis leadership is mentally draining. When the unexpected happens, your team will look to you for calm, clear decision-making. That means thinking through potential scenarios in advance. Run crisis drills, build response checklists, and ensure your leadership team knows exactly what to do in a high-pressure situation. By doing this thinking in advance, you put yourself on the front foot, ready to lead decisively when it matters most. Proactive planning doesn’t just reduce risk—it builds trust and resilience within your team and stakeholders.
The Bottom Line: Be Crisis-Ready
As you get older you will realise that every ten years a crisis will happen to your business or personal life, it is baked into being a human! It’s not about avoiding them; it’s about surviving and thriving through them. A crisis-ready business is a valuable business. It’s attractive to buyers, trusted by stakeholders, and resilient in any storm. So, ask yourself—are you prepared? If not, it’s time to act. Let’s get your crisis plan in place before the next storm hits.
Don’t wait for the unexpected to catch you off guard.
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