Leadership & Growth

Prepare for the Worst: How to Safeguard Your Business in Times of Financial Crisis

Mapping your path to success amidst local economic upheaval.

  • 4 min Read
  • December 10, 2023

Author

Escalon

Table of Contents

An entrepreneur’s life is a roller coaster ride filled with multiple scenarios that can be exciting as well as disruptive. However, most new business owners are well-equipped to handle these as a part of their entrepreneurial journey. 

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But in addition to that, a business is also controlled by external factors such as economic crises, environmental disasters, wars, and conflicts that affect the entire global economy. 

However, keep these scenarios from getting in the way of your growth. As a business owner, you must remember that each crisis is different and needs a dynamic response. 

While multiple global events can disrupt your business, this article focuses on how to deal with a local financial collapse spurred by economic turmoil or external shocks. As an entrepreneur, you must prepare to navigate the fallout and continue running your business amid shifting dynamics. 

Here are five must-have strategies for entrepreneurs and small business owners.

1. Foster local partnerships


Building solid local partnerships helps entrepreneurs overcome marketing challenges and foster growth. Through collaboration with other companies and organizations, business owners can broaden their reach, share resources and expertise, and establish stronger connections with their target audience.

2. Support grassroots initiatives


Grassroots initiatives in partnership with communities help resolve localized problems. Individuals power these projects, which gives them momentum and outreach at the local level.  Allocating funds and resources to these local projects and initiatives helps entrepreneurs improve infrastructure and services and promote sustainability and resilience. 

3. Hire local talent


Recruiting locally provides employment opportunities, which help eradicate poverty and inequality. As a result, it helps boost productivity and enhances social cohesion and inclusion. 

Furthermore, it betters the community’s quality of life by boosting city revenue, fostering self-sustainability, and promoting stronger community connections. Remember, when you empower a community, you also fortify your business against future turmoils.

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4. Embrace local sourcing


Sourcing goods and services from local suppliers, vendors, and contractors gives flexibility and control to entrepreneurs. Localizing the supply chain also cuts down on warehouse and shipping costs. 

Moreover, local sourcing leads to a circular economy where funds stay within the community. At the same time, you create jobs, reduce environmental impact, and foster relationships. 

5. Engage in social responsibility projects 


Businesses committed to social responsibility attract customers and have higher engagement opportunities. Additionally, customers feel confident about positively impacting the planet by supporting such companies. As a result, when asked to choose, they will opt for a product made by a socially responsible company. This gives you an edge over your competition in times of crisis. With these advantages, entrepreneurs should seize the opportunity to attain long-term financial success while making a difference.

The final word


Local economic upheaval presents unique challenges for entrepreneurs. The key to staying afloat in these times is fostering local partnerships, supporting grassroots initiatives, and engaging in social responsibility projects to contribute to the economic recovery of communities.

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Want to know more about startups and what it takes to get started? Since 2006, Escalon has helped thousands of startups get off the ground with our back-office solutions for accounting, bookkeeping, taxes, HR, payroll, insurance, and recruiting — and we can help yours, too. Talk to an expert today. 

This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.

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