How to maintain balance and develop a business in the face of fear, chaos and uncertainty? A company which exists during a crisis should immediately redress itself with specific and field-proven measures. In a crisis, this is a possible but difficult way.
The difficulty lies in the fact that the proposed solutions create tension and confusion in the team. If nothing is done, then the death of business is inevitable. But instead of following a clear anti-crisis strategy, the company makes incoherent actions, risking losing precious time and spending money meaninglessly, which is sharply lacking during such times.
Where to start when a company is forced to exist during a crisis?
1. Review your solvency
Any business not only makes money, but also pays someone. These two things are inextricable conditions for the successful functioning of the company. A business owner must pay rent, pay suppliers for materials or goods, pay for advertising, transportation and much more.
During a crisis, when every penny counts, the directors might want to not pay the bills, thus simply deceiving the company’s partners. Naturally, after such actions, it is unlikely that they will be able to get out of this situation without any consequences. Therefore, no matter how strong the temptation to financially deceive the landlords, suppliers or other partners, one should choose a different line of behavior. Instead of deliberate deception - use constructive negotiations. If you feel that you can’t pay as much as you paid before, start negotiations with partners about new conditions for cooperation.
2. Identify the dangerous places of contracts and agreements
Any cooperation agreements indicate the rights and obligations of the parties, the terms of interaction, the payment schemes, etc. Perhaps, everyone knows that such documents can be compiled with certain weak spots. The small print at the bottom of the page, that usually no one reads, is not the worst you can get. An experienced specialist can draw up a contract so that, from a legal point of view, you will own much more to your partner.
It is necessary to review all existing contracts and agreements for the presence of potentially dangerous items that partners can use, with the help of a reliable lawyer.
3. Refuse loans
With new loans in times of crisis, it would be better to wait. On one hand, such advice may seem illogical, because if there are problems with financing, then why not turn to bank lending? Because any lending implies shady stuff. In an unstable economic situation, all of it can become much more dangerous.
In a situation of delayed repayment of a loan, a business risks its own production and property. Any problems with timely repayment of the loan can provoke bankruptcy.
A crisis is not the time to set high goals and dream of conquering the world market. One should observe the current situation and study forecasts regarding the further development of events. Any experiments must be put aside for the future. Focus your efforts around reducing costs. The most important thing is to not panic, but to act rationally and decisively.
