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How to recuperate after a business crisis

Encountering a business crisis is inevitable if you run a business, but how you recuperate from it can either mean a business that continues to grow or one that is heading for bankruptcy. But what constitutes a crisis and how can you recuperate after a crisis?

Firstly, let’s outline what makes an event a crisis. An event is a crisis if it poses an imminent threat to your business, has an element of surprise or shock, and places pressure on the business to make a timely and effective decision. By setting up some crisis management plans, you will be more equipped to make better decisions when the crisis arrives, and this will help you to recuperate better.

Here are six steps to recuperate after a business crisis

1. Acknowledge the crisis

When a crisis hits your business, whether global or local, we need to acknowledge that it happened. We can’t be like an ostrich with our heads in the ground. Rather look the crisis in the eyes and decide on how you are going to overcome it.

2. Adapt to the changes

If you were an agile business before the crisis, then adapting to the new changes will be easy. The challenge is for companies who struggle to change. You need to notice the changes in your stakeholders and business environment. And make the necessary changes to your business which will help you to serve your stakeholders and to operate in your business environment the best.

3. Have a long-term view

During the crisis, you may have been working day-to-day to keep your business afloat but now you need to revisit your business plan. You may have had to pivot during the crisis but is this still a market you can operate in or do you need to return to your roots. Do you need to uproot your old business plan and write a new business plan for the business which has come out of the crisis? Whichever it is, set some long- and medium-term goals for your business to reach.

4. Review your weak spots

One advantage of a crisis is that it can bring some of the weak areas in your business to light. During the crisis you may have put a band-aid on the situation, but now is the time to remove the band-aid and look for a better solution for the weak areas in your business. Look at the solutions you have and discuss with those employees who use the solutions if they need to change or can stay as they are.

5. Learn from the crisis

Every crisis is a learning opportunity. Sit down and do a review of what happened before, during and after the crisis. Make notes and create plans which can be implemented next time a crisis arises.

6. Celebrate the wins

Often when we go through a crisis, we never see the wins and help we received along the way. As you recuperate, celebrate the support you received during the crisis and acknowledge the wins you had during the time.

By following these six steps you will be on the way to recuperating from the crisis stronger and healthier than before.

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