Steps Companies can Take to Capitalize on Adversity

In any industry, it's important to be prepared for a crisis. Asking yourself, "What if?" and then addressing your concerns can help you keep your business afloat in times of trouble.

Before a company can address any problem, it needs to understand what's going on. There are several steps that you can take to get a clear picture of the issue:

• Determine the cause of the problem. Does it have one or more causes? If so, which ones are most important? Is there something that could be done to prevent this from happening again in the future?
• Figure out what your problem is and why it exists. What are its symptoms? How far has it spread across your organization or industry as a whole? Is this just one instance or part of larger trend?
• Consider whether there are any potential solutions for resolving these issues—and weigh their benefits against potential drawbacks before implementing them into practice.

Make Short-Term Decisions That Serve Long-Term Goals

• Make sure you have the right people in place.
• Consider what resources you have available.
• Consider what your competitors are doing.
• Consider what the market is doing.

Keep Money in Mind

As you're planning for a crisis, it's important to keep in mind that there are two kinds of money: actual cash and liquid assets.

Liquid assets are things like your company's investment portfolio, stocks, and other financial holdings—these can't be used until you sell them off. Actual cash on hand is an immediate source of funds that can be used if necessary. Ideally, your business should have enough liquid assets to cover unexpected expenses or crises without having to dip into its actual cash reserves. If this isn't the case, however (and most small businesses don't), look for ways to earn some extra money while keeping your operations running smoothly during times of high pressure—for instance, by offering discounts on services or products during slow periods or selling old inventory through online marketplaces like eBay and Etsy (or even Craigslist!).

Look Outside Your Niche for Solutions

When you're in a crisis, it's easy to get tunnel vision and focus only on your industry. But the best way to find solutions is by looking outside your own industry and tapping into other areas of expertise. Look for solutions from other companies, non-profits and academia.

If you're a clothing company that wants to get back on top after a factory fire destroyed half of your inventory, ask yourself: How did Gap respond when they had their own disaster? What did they do differently than you? Do they have any connections with suppliers who could help you out? If so, reach out and see if there are any partnerships or opportunities for collaboration.

Remain Flexible

• Remain Flexible
• Communicate with the Team
• Take Ownership of Mistakes and Learn from Them
• Work Harder Than Ever Before

Taking proactive steps can help you weather a crisis.

"Taking proactive steps can help you weather a crisis."

The first step in mitigating the impact of any crisis is being prepared. You cannot control whether or not you will be involved in a crisis, but you can control your reaction to it. This means having a plan in place and being flexible enough to adapt that plan as needed based on changing circumstances.