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How to build a resilient business

Pandemics, wars, political unrest, and load shedding are just a few difficulties we have had to face in South Africa and globally. But as the world gets smaller, and technology keeps developing changes are happening more rapidly. So, what do small businesses do in this chaos? Well, a lot will close their doors, but a business built with resilience will succeed and even thrive in challenging situations. You may be asking yourself but how do I build resilience in my small business? Well, let’s first look at what resilience is then we can see how to build it.

What is resilience?

According to the Oxford online dictionary, resilience is ​the ability of a business to recover quickly after something unpleasant has happened. This could be a data breach or political unrest. How would your business recover?

How to build resilience in your business

1. Have a cash reserve

When something bad happens in your business, having a cash reserve to tide you over is good. By saving some money from your profits, you will be able to navigate tough times more easily. You should also try to secure a way to access credit should the need ever arise.

2. Expand your client base

The size of your client base may limit the growth potential of your business. It is crucial for growth and resilience to diversify your client base. Look for other clients who will find value in your offering. This will ensure that should the one client base dry up, you will have another client base to explore.

3. Create a modular system

By creating independent steps within your business and processes, you will be able to pivot your business easier should trouble come knocking at your door. Instead of relying on one person to complete a range of steps in your process, it is better to have a few individuals who know how to do a range of steps. This prevents a process from coming to a standstill if someone is sick or leaves your organisation.

4. Stay up to date with trends

Your business must stay up to date with trends in your industry as well as trends within your geopolitical environment. By keeping your ear to the ground, you will be able to speculate about the future and decide on what to do within your business to minimise the impact on your business. By keeping in tune with technology trends, you will be able to see if any new technologies are being created which would benefit your business.

5. Cut costs

Running a lean business is profitable. You should review your costs regularly and remove or change those which are not necessary anymore. As your business changes, so will the costs so by reviewing them regularly you will ensure you are not making any unnecessary payments.

6. Build strong relationships with your suppliers

As much as customers are crucial for your business so are suppliers. By having a good strong relationship with them, they may be more willing to help you when trouble hits. You may also consider having more than one supplier for items which are essential for the operation of your business.

7. Invest in innovation

By encouraging your staff to be innovative, you can ensure that you remain the thought leader in your industry. It is important to look at innovations and see if and how they may benefit or be detrimental to your business.

8. Focus on your health

Ensure that you have margins in your business where you can relax and think about things which you enjoy. Have a good rest at night and make time to exercise. By having a healthy body and mind, you will be able to focus and build a healthy business.

By following these eight steps, you will work your way closer to a more resilient business.

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