With the dynamics of the corporate world growing more intricate by the day, business resilience has become a critical survival tactic for small and large businesses. A 2016 study by KPMG showed that more than 90 percent of companies were undergoing business transformations, with a complementary survey establishing a positive correlation between individual employee resilience and the ability to live through these transformations. These four tips can help to make your business strong enough to handle the most probable contingencies, including business transformation, economic downturns, and natural disasters:
1. Digitize your business
Digitization provides a more seamless communication avenue between the business and its customers and between departments. Communication over digital platforms comes in handy for companies during unsettling times when in-person communication is impossible or inconvenient. What’s more, digitization may help companies understand their predicaments better and expedite their way back on track.
2. Seek reliable backup services
In today’s world, where every major business decision is based on data, backups are extremely crucial. In light of this, you could be forgiven for thinking companies are serious about creating copies of their digital data. Most IT teams are so focused on streamlining sales, marketing, analytics, and customer support automation that they forget a single cyber-attack can cripple the whole company.
Ignorance is not the only reason companies don’t back up their data. Others don’t have the resources for it. If you fall in the latter category, you need to invest in Backup as a Service (BaaS) storage. This way, you can bypass the massive in-house storage costs and rest assured that your data is in the safe hands of professionals.
3. Develop more than one path to the ultimate business goal
Change is inevitable, but that shouldn’t alter your vision. Solidify your business’s objectives by establishing more than one strategy to attain the goals. This means factoring in all the possible contingencies in your initial plan and creating a backup approach that is more resilient to the projected turns of events.
4. Don’t invest all the profit.
When a company is still in its infancy but making significant headway, the urge to inject as much of the profit into production is irresistible. But that is not always a good idea. Some misfortunes can only be fixed with cash. Take the Covid-19 pandemic, for instance. Whoever thought a virus would bring entire sectors to their knees, cause mass unemployment, and have SMEs struggling to stay in business?
Many businesses in the tourism, entertainment, catering, and travel industries are on the verge of collapse thanks to the massive loans they are servicing and the losses they are incurring from the vast amounts of stock expiring on their shelves. Most of them would have a place to start post-pandemic if they had refrained from investing all their money.
Corporate resilience is underrated because it doesn’t pay off as often as today’s profit-oriented entrepreneurs would like. You don’t have to follow in those footsteps. Recklessness may work out well for others, but that’s a gamble you don’t want to take with your company. Follow the above tips to stay prepared for the tough times without taking your focus off your business goals.