The First Step to Surviving a Small Business Crisis is Claiming Responsibility

I am always amazed at how much information there issolution. In other words it begins when you stop
on the internet about doubling or tripling your business."sleepwalking" and become determined to address the
"Just try my system and sales will go through theissues head on.
roof!," these sites promise. If these messages are true,The first step toward effective Crisis Management is
then why are so many businesses failing? The truth istaking responsibility. Yes, you are responsible. Even if
that no single system works. Sure, a certain approachan asteroid was to hit your building, demolishing your
might bring in more business; however, doublingenterprise, you share responsibility. Why? Your
business could destroy a struggling small enterprise.responsibility is in creating a well planned strategy to
People are looking for a secret to help them getdeal with this type of outcome. I am not trying to be
ahead. Just look at the bestseller's list. One of the mostfacetious here. You are responsible, period. What are
popular books out on the market today is named,you prepared to do about it? In my book Small
what else, The Secret. There is no secret! There isBusiness Pain I outline the basic steps to take in order
only education, trial, error and hard work.to manage crisis in your business. The process
Before you get mad at me, consider the following.involves getting emotional (Angry), because anger
Sales are only one component of any successfullessens fear and gives you the strength to carry on. It
business. Even if there was such a thing as a secretalso requires getting organized and reviewing the
formula that once mastered would increase your salesfinancial state of the business. Most CM companies
by 500%, who would fill the orders? How would youare in denial and live with unrealistic projections and
ship it, stock it, pay for it, improve production, systems,assumptions. Facing the truth as it really is represents
storage, or functionality? How would you maintaina painful, yet necessary, step along the journey to
quality control? These questions are even morerecovery.
complicated to answer if the business you are tryingRushing out for new business is seldom a wise idea if
to build is already in crisis.your company is bleeding cash. It is better to look at
By definition, a business in crisis is one that is losingyour existing client base and find ways to add more
money or barely breaking even each month. A crisisvalue to them. When working through a crisis
can happen to any business at any time. True, crisesmanagement situation within an enterprise, I often have
are more prevalent in new companies, but history isto remind the owners to stop looking outside for
filled with examples of large successful businessessolutions--there is nothing out there! The answer, no
that rapidly entered the crisis stage when fuel pricesmatter how painful, is always right before you. Are you
surged or technology changed. The potential for crisisdrawing too much money out of the business? Are
exists in any type of business, regardless of its size.you trapped with relationships that have weakened
Unfortunately, if you are the owner of a small,your ability to adapt and grow? Have you become a
independent company you often lack the resources to"Nice Guy" to the detriment of the enterprise? Are you
correct or react to such changes. This is whyallowing people to withhold payments because you
understanding how to survive a crisis is so important.empathize with their issues? There are a thousand
Surviving a crisis requires careful Crisis Managementpossible reasons why your business is might be
(CM). The Crisis Management phase begins when yousuffering. One response is universal--the road to
consciously decide to address the real issues in yourrecovery begins with looking in the mirror.
company and stop looking for the popular quick fix