What Will YOU Do When Business Disaster Strikes?

I must lose myself in action, lest I wither in despair. – Alfred Lord Tennyson

Entrepreneurs accept a few truths:

  • The potential for failure
  • A willingness to take chances and accept risks
  • Don’t quit easily—pivot, regroup, rebrand
  • Fail fast & learn from mistakes
  • Believe the risk is worth the reward
  • Will take more time than originally planned
  • Will take more money than originally planned

If we aren’t aware of these certainties as we enter an entrepreneurial pursuit, we soon experience and learn to accept them.

Try as we may to prepare for and avoid the risks and failures, they happen. It’s a part of the journey. Often, these failures present themselves as a financial threat. If you find yourself in that situation, here are some action tips to work you through the snag.

Review your business expenses

What areas can be shifted? Can you eliminate or reduce one service or combine to save money?

Are there overlapping services that can be clarified? If outsourcing business tasks, review with your service providers to ensure that they complement each other rather than compete.

If you attend networking or professional events, can you arrange ride share to save on gas and vehicle expenses? If you attend events that require an attendance fee, consider postponing these until the situation is resolved.

Hold a virtual coffee meeting. Hangouts, Messenger, and Skype make this possible and saves time, money, and traffic headaches for both parties.

Lifestyle review

Similar to the business review, what can be reduced or revised to cut costs to get you through the crisis? This doesn’t mean depriving yourself of necessities, but perhaps instead of going to the theater every weekend, you check out a movie from RedBox (if available), rent a movie from the library, or have an at-home movie night with friends.

What is the state of your emergency fund? If it has been accessed for an unexpected event, is there room for a little more? Can it (and you) spare 10% for the situation?

How soon can you replenish your emergency fund? Make it a habit to contribute regularly and as soon as possible once the crisis is over. Consider: how would you be impacted without the emergency fund?

Additional thoughts

  • Keep emergency fund active; maintain ½ balance
  • Maintain communication with support team & family—not everyone needs to know; just key players & investors
  • Review budget often (monthly is idea, quarterly at a minimum)
  • Have a backup plan: anticipate potential disasters and plan accordingly. Adjust as situations come and go, or if other ideas emerge
  • Fail fast
  • Recover faster
  • Recovery includes free-time to clear the brain which allows new ideas & possibilities in.

Entrepreneurs are a determined group of energized people who understand and accept the risks. If you encounter a crisis, the sooner you take action and implement a recovery plan, the sooner you will be charging forward again.

Got additional ideas to share? Let’s hear them in the comments below.

Kristen