Anyone who has run a business before will tell you to expect the unexpected. It might be a downturn in the economy, new competition in the market or some news item that discredits a component of your product or a benefit of your service. Or it could be as simple as the loss of a key employee or an unexpected expenditure that throttles your cash flow.
Adapt to survive
When the unexpected happens, you need to be able to adapt and reset if you want to survive in business. This means you need to recognise the opportunities and reshape your operation to fit.
Depending on the circumstances, it may mean reducing the overheads or assessing how to achieve your business objectives in other ways. For instance, you might need to reduce staff levels, source different suppliers or negotiate better terms. Or you may need to reshape the delivery of your service or production of your product to focus only on best sellers.
Companies that are able to adapt quickly and effectively are the ones that are most likely to thrive in the long term.
A resilient mindset
A lot is made of being able to think creatively. Outside of the box thinking is shared by most successful business people across the world. When something unexpected happens you may feel all you have time to do is firefight. But the real skill comes in being able to focus on what works and then spot the opportunities.
Being resilient means not giving in to the situation. If you’ve lost a big customer the opportunities may seem elusive. But in reducing your overheads you may find you’re able to operate more nimbly than before, take more risks and explore new markets. With a smaller or no team you may decide to engage the work of freelancers. The internet provides platforms from which to employ talent from across the world. New people may bring new innovative ideas and approaches to doing the work.
The trick is to avoid being swallowed by the circumstances the unexpected event has left you in. See every situation as a challenge, react quickly and remain focused. Unexpected situations happen in business. You need to accept not everything goes as you might hope or planned. Being flexible and resilient is what separates the winners from the also rans.
Creating a flexible business plan
A business plan is a living document. If used properly it will change as your business changes. It is a waste of time creating a business plan if it’s stuck in a draw and only dusted off when you need investment.
In today’s environmentally conscious world a business plan could be kept in digital form. It should be referred to on a regular basis in order to evaluate whether or not goals have been met. If goals are missed or progress towards goals is slow, strategies should be adapted to improve the situation.
Make sure there is enough flexibility in your business plan to allow you to modify your desired outcomes or method of achieving your goals. For new businesses, a business plan is a little like a training document. The more you’re willing to put in the more you will learn, improve and achieve.
Taking care of your mental health
When the unexpected happens, the consequences on a business can be alarming. For some, the natural reaction is to panic and firefight the situation. While hard work is needed, no matter what position your business is in, you can’t allow the situation to take over. Simply putting your head down and ploughing on can lead to burnout and increased levels of stress. Which, in turn, can lead to all sorts of mental and physical health problems.
If you’re self-employed you might seek out networking groups. Whether online or a group of people you meet in person, such groups can provide experience, ideas and support. Make sure you also have a supportive network around you. This usually means family but close friends can also provide support and encouragement.
And finally…
Everyone in business will face unexpected setbacks at some point. The trick is to take time to evaluate the situation and react quickly. Some unexpected issues may simply present a temporary difficulty but others require the ability to think creatively. You may need to change your business model, product or service to survive. Whatever the circumstance resilience, creative thinking and adaptability will help you navigate your way through.