Building small business resilience
From natural disasters to cyberattacks to global events and more, your business is susceptible to forces outside of your control. Building business resilience could make the difference between business survival and failure during a major event.
Understanding the risks
You know your business best. Set aside time to brainstorm any potential risks to operations, even if they seem unlikely. Think about natural disasters your area is prone to, like tornadoes or flooding. Consider non-physical risks as well, like system shutdowns, cyberattacks, regulation changes, or specific risks to revenue.
Identify critical processes and systems
Document your business’s current state. Outline key systems like payroll, order fulfillment, and building and online security.1 It may help to map out the daily, weekly, and monthly processes your team executes, then identify those that are vital to business operations. Identify the employees with an essential role in these systems, and document any specific skills or training required to fulfill their duties.
Mitigate finanical loss
Considering your list of key processes, outline steps for quickly restoring functionality.2 Identify alternate suppliers and backup operations plans to avoid a single point of failure. Review your current insurance plan, financial accounts, and banking tools to ensure they meet your needs and establish additional accounts or policies where relevant.
Invest in people
As you already know, people are your most valuable asset as a business owner. Building resilience begins with investing in the employees who make your day-to-day operation possible.2 Train your team to feel equipped in their day-to-day roles. Then provide intentional cross-training to ensure seamless transitions during times of change. In an unexpected scenario, an adaptable, well-trained team expands your options and can allow for a quicker response.
Monitor and stay proactive
Once you’ve identified the risks to your business, stay aware.2 Unpredictable natural disasters, shifting global markets, and many other “what ifs” can cause your business to pause or stop operations altogether. Designate a cadence (yearly, quarterly, etc.) to reevaluate your risk assessment and response plan. Look for changes in operations and technology to make sure the plan is up to date and ask your team to identify anything you may have overlooked.
As you plan for uncertainty, remember the power of asking for help. Surround yourself with people and professionals you trust and confidently seek guidance. Connect with your local banker to address your financial questions or needs. You can be certain that we’re on your side.
