Every business will face unexpected challenges. These may be external challenges like an economic downturn, supply chain disruptions, or a global event. They can also be internal, such as a product defect or a legal challenge. Managing these crises can be difficult, but how leaders respond can determine a company’s long-term survival and future success.
In a recent conversation on the Systems Simplified podcast, Adi Klevit spoke with Jessica Gomez, CEO of Rogue Valley Microdevices, about how her company navigated multiple crises while finding ways to thrive. Keep reading to find the success framework Adi and Jessica talked over. Any business owner in any industry can follow this “how-to” for navigating business challenges.
How to Navigate Business Challenges With Confidence
1. Don’t Wait for Certainty
Hesitation in the face of difficult circumstances is one of the most common mistakes business owners make. Taking swift action is a critical step at the first sign of trouble. That’s why it is valuable to have an advanced understanding of the action steps you must take in times of crisis, rather than waiting for a challenge to read up on what to do.
Establish a crisis response protocol before you encounter the crisis. This must include empowering your leadership team to escalate concerns. Within the first 48-72 hours, you and your team should review current financial and operational indicators and determine changes that must be made.
Time is your most valuable resource in uncertain situations.
2. Reassess What Drives Revenue
It’s vital to recognize that not every product line or service offering performs equally.
Now is the time to:
- Analyze products/services to determine which are profitable, sustainable, and aligned with current customer needs and which are not.
- Segment your offerings by profitability and complexity.
- Focus your team and resources on what will provide the greatest return.
- Revisit your pricing models and renegotiate unprofitable contracts.
3. Rebuild Your Business Around a Clearer Value Proposition
Every crisis is an opportunity to improve focus. Whether it’s repositioning your product line, adjusting to a new market condition, or targeting a different customer base, successful companies refine their message and simplify their approach.
Do this by conducting a value proposition meeting with your leadership team. Ask: What do we do best? Who needs it most right now? How can we serve them better under current conditions?
4. Systematize Your Staffing Decisions
Staffing choices become even more critical when industry pressure increases. Combat these pressures by building systems for crucial areas like HR. Here are three vital HR systems that help you make decisions based on metrics, not panic:
- Hiring
- Onboarding
- Performance Review
Making a wrong, gut-based personnel decision can stall progress, affect team morale, and prevent your business from reaching its potential. The sooner you make the right decision for the company and the team, the sooner everyone can move forward.
5. Overcommunicate
Uncertainty breeds fear. When your business is facing a challenge, your staff needs to hear from leadership early and often. Transparent communication builds trust and strengthens your internal culture.
Establish a regular cadence for company-wide updates as part of your crisis response protocol. Be sure to tie your messaging to the company’s long-term mission, explain what’s changing and why, and provide space for employees to ask questions or contribute ideas.
6. Use the Crisis to Build Long-Term Resilience
Once your business stabilizes, turn what you learned into systems. Codify processes that worked, document failures, and refine how your company responds to future external shocks. This can be done by:
- Meeting with key team members after the crisis has been resolved.
- Identifying changes that were made.
- Determining what changes will remain in place and what past actions would benefit the business moving forward.
- Working with the entire team to document or optimize existing systems for future growth.
Many operational errors blamed on individuals are often the result of weak or missing systems. Building clear processes, training, and tools supports employees and creates a foundation for consistency and accountability. If you’re navigating significant change and need help building dynamic systems, reach out to Business Success Consulting Group. We’ll help you turn disruption into long-term growth.
