HOW TO SURVIVE A CRISIS: LOOK FOR OPPORTUNITIES, NOT THE REASONS
Any company sooner or later goes through a crisis.
And the most important thing is to understand that change for the better is impossible without trials. Market leaders successfully use them to reach a new level. How to run a business, where to invest and what to develop? Learn more.
Maria Kareva, MBS business coach, EMBA in strategic Finance, expert practitioner in the field of management and Finance, took part in the preparation of the mailing list.
AND THAT’S ALL ABOUT HIM… Imagine that your company is a living organism.
It develops, goes through growing pains.
Crises are inevitable: they are an indispensable phase of the life cycle.
Therefore, it is important to have time to “treat” any organization after seeing the first symptoms.
TO BEGIN WITH, LET’S DEFINE WHAT KIND OF CRISES THERE ARE:
The firm loses its solvency and fails. Urgent measures are required to reanimate the company.
Crisis of success.
The actual state of Affairs differs sharply from the planned one in a negative way. For example, you may have noticed that your sales and profitability indicators have fallen and your profit has declined.
The crisis strategy.
Weakening of business immunity. The position of the company may seem satisfactory, but there are failures in development, reduced competitiveness.
The Council: Try replacing the word “crisis” with “special situation” or “new opportunities”in your speech.
Believe me, even in the most negative circumstances, you can find positive components.
IT’S TIME TO ACT!
The simplest and at the same time effective step is to do something that has not been done before. Before that, you could be busy analyzing the market, increasing your competitive advantages — in other words, looking for external chances. Now is the time to focus on the company’s internal problems.
Place a bet on employees
Communicate not only with Department managers, but also with ordinary specialists. Even if no one gives you unique ideas, you will know where to go.
Don’t drop ads
One of the most common mistakes managers make is to reduce their advertising budget during difficult times. What does this policy lead to? Your company will be forgotten, and customers will go to competitors. It is better to redistribute advertising money. Invest more money only in channels that work as efficiently as possible.
Think about what assets your company has and what you can sell or mortgage. Real estate, machinery, equipment — all this is important to try to use as collateral to pay off debts, and the premises are also rented out.
PS of Course, there are no universal recipes for overcoming the crisis. Each company reacts to the situation based on internal resources and management features.