Building Resilience into Your #Business
There's no point denying it: times are tough.
The pandemic has decimated businesses and industries around the world, and now inflation is sparking a new crisis. Businesses are struggling.
However, whilst the last few years have admittedly been extremely tough, highs and lows are a normal part of business. When you're sailing a ship, you can't always expect perfect weather conditions, and the same is true of running a business.
So what can you do to weather these storms?
Build resilience into your business.
Resilience is the ability to recover quickly from difficult situations, and it's something that all businesses need in order to survive tough times.
Let's take a look at how you can make your business more resilient so that you're ready to tackle any difficult situation that comes your way.
1. Diversify Your Income Streams
If you're reliant on just one or two streams of income, then you're putting your business at risk. What would happen if one of those income streams suddenly dried up?
Diversifying your income streams is a great way to protect your business from shocks. When you have multiple income streams, then even if one of them is hit hard, the others can help to keep your business afloat.
2. Diversify Your Customer Base
Similarly, if you're relying on just a few big customers, then you're making your business vulnerable. If one of those customers decides to take their business elsewhere, then you could be in big trouble.
Again, diversification is the key. By having a broad range of customers, you'll be in a much better position to weather any storm that may come your way.
3. Build a Cash Reserve
When times are tough, having a cash reserve can be a lifesaver. This is money that you set aside specifically for tough times, and it can help you to keep your business afloat when things get difficult.
Ideally, you should aim to have enough money in your cash reserve to cover at least three months' worth of expenses. That way, even if things get really tough, you'll know that you have the resources to keep going.
4. Automate Your Business Processes
One of the best ways to make your business more resilient is to automate.
When you automate your processes, you free up time and resources that you can use to deal with difficult situations. Automation can also help to improve your efficiency and productivity, which can be a big help when you've got a lot on your plate.
5. Review Your Costs Regularly
During tough times, it's more important than ever to keep a close eye on your costs. Review your costs regularly and see where you can make savings.
You may need to make some difficult decisions, but it's important to remember that every little saving can make a big difference.
6. Keep Your Employees Engaged
Your employees are one of your most valuable assets, and keeping them engaged is vital to weathering tough times. Make sure that you keep communication lines open, and let your employees know what's going on.
You can't have a resilient business without a strong team, so ensure that you make a concentrated effort to keep your employees motivated and engaged.
7. Plan for the Future
Finally, it's important to remember that tough times don't last forever. Yes, you have immediate problems, but you should still keep an eye on the big picture and think about the future.
What can you do to position your business for success when the tough times are over? What changes do you need to make now so that you can take advantage of new opportunities in the future?
When you have a plan, you automatically feel calmer and more in control. You can make rational decisions because you’re prepared for a variety of situations.
Final Thoughts
Resilience is vital for businesses of all sizes, and by taking the steps outlined above, you can make sure that your business is ready to face whatever challenges come its way.
There will always be new problems to tackle, so ongoing resilience is key.
Timothy Kelliher & Company Limited
Chartered Accountants
Phone/WhatsApp: +353 (0) 64 6632105
Email: info@timothykelliher.ie
