What is small business resilience?
It’s a term that’s been in the news a lot since the start of the pandemic, but what does it actually mean? How do you know if your company is resilient or not? And why is it good to have resilience?
McKinsey and Company define business resilience as the ability to withstand the shocks, changes, and upheavals in the business environment. We agree but would also add that it’s the ability to bounce back from setbacks. The past few months have certainly brought many upheavals, changes, and setbacks to the business world.
If your business struggled during the pandemic, you’re not alone. But if you’re reading this and your business continues, it has resiliency. Here, we’ll discuss 5 steps to improving small business resilience and how to strengthen and improve your business to “future proof” it as much as possible.
5 Steps for Better Business Resilience
How can you help your company bounce back from circumstances that no one can foresee? By taking into account as many contingency plans as you can without driving yourself crazy. We can all plan “what if” scenarios for everything from a tornado to a nationwide transportation strike but, at some point, we have to pick and choose the most likely scenarios or all we’ll do is make what-if situations and contingency plans.
Steps to Small Business Resilience
Building better small business resilience can be broken down into 5 steps:
- Examine business data
The first step toward better business resilience is to determine the most likely pressures your business may face in the upcoming year. Examine things like marketplace trends, industry business intelligence, and your own customer base and competition.
- Review current software and potential needs
Having the right software to support making better business decisions is also crucial. For example, companies with cloud or browser-based ERP systems found themselves in a better position to enable employees to telecommute than those locked into site-based systems. Consider reviewing your current software and systems to make sure they can support your company adequately during challenging times.
- Connect business systems
Along with having the right software to meet your needs is having software that integrates multiple systems: finance, operations, warehouse and inventory, and marketing. Such software enables you to have a 360-degree view of your business. Cloud-based software also improves real-time visibility, so you’ll always have the information you need right at your fingertips.
Not sure which software you need? An ERP consulting service can help. Emerald TC offers ERP consulting services to help businesses determine the best software for their needs.
- Listen to your customers
Find out what keeps your customers awake at night and then figure out ways to help them with those problems. Talk to your customers frequently. It doesn’t have to be through formal marketing surveys. The closer you can connect with your customers, the better information you’ll have to strengthen your business against marketplace shocks.
- Increase cash reserves
Improving cash reserves can increase your safety net against lean times. If an abrupt change occurs in the marketplace or among your customers, you’ll have enough cash set aside to keep necessary business expenses paid until such time as things return to normal.
Although you can’t plan for every contingency, small business resilience means having the resources needed to weather temporary business setbacks. With the right planning, your business can bounce back and be stronger than ever.
Emerald TC offers ERP software consulting services to manufacturing companies. We can help you choose the right accounting software, ERP system, payroll, or other software for your needs. Contact us or call 678-456-6919 for more information.