Achieving Global Resilience: 7 Essential Internal Changes for Small Businesses

Did you know that over 3 million small US businesses closed in 2020 due to Covid-19? 

The surviving companies found ways to pivot their operations to meet new demands. A 2020 International Journal of Disaster Reduction survey found that over 60% of American small companies altered their customer service approaches, and 56% adjusted their supply procurement methods.

The pandemic was a wake-up call. Organizations must develop adaptability to thrive in the coming decade full of uncertainties. A 2021 McKinsey & Co. analysis indicates that catastrophic events will likely unfold more quickly and in less predictable ways in the coming years.

Adaptability is a cornerstone to thriving amidst the chaos. It allows any business to remain robust while future-proofing it. Being agile and flexible can help you find solutions more quickly to take advantage of the opportunities that arise from adversity. 

This article explores internally driven strategies for small businesses to become more adaptable to endure global tough times and transform challenges into catalysts for growth and success. 

Here are seven internal changes you should make to position your firm to adapt to new circumstances and navigate global challenges. 

1. Adopt a problem-solving mindset 

Approach challenges with a problem-solving gaze instead of dwelling on the negatives. Remember, the solutions will get you out of the slump. So, ensure that you:

• Analyze the scenario, break it into manageable parts, and tackle each issue systematically with your team. 
• Work together to recalibrate strategies and develop innovative solutions to harness the opportunities from adversity.

2. Stick to the core mission 

Tough times demand you always stay ready and respond when necessary. But you still have to maintain your core mission. In this regard, ensure that you:

• Evaluate your business and financial operations and identify areas you can tweak without compromising fundamental values. 
• Use the business’ core mission as the guiding light to overcome challenges and chart a new path effectively.

3. Build team morale

Staying attuned to your employees’ feelings and needs during challenging times is essential. Uncertainty can take its toll on workplace morale. So:

• Ensure that you boost your team’s confidence during difficult periods. 
• Foster a positive and supportive work environment.
• Encourage regular communication, empathy, and a sense of unity amongst your employees.

4. Drive innovation 

Pursuing innovation initiatives during a crisis can be vital to navigating and emerging even more robust. So, it’s best to:

• Build a culture that encourages creativity, innovation, and forward-thinking.
• Encourage the team to explore new ways to deliver value to your customers.
• Drive transformation from within to support and scale new solutions.

5. Rethink business operations 

Engage your team to brainstorm new ideas on how your business could be run more efficiently. In this regard, consider: 

• Reexamining your business operations and identifying areas of optimization.
• Staying on top of your financial goals.
• Streamlining the budgeting for cash flow.
• Investing in new technologies or reconfiguring workflows to better align with your current situation. 

6. Bring people together 

If the pandemic taught us anything, community and solidarity are essential. A supportive community can provide the strength and resources needed to navigate the challenges. Thus, ensure that you:

• Create a sense of community within your business and your customers.
• Build a support network of like-minded entrepreneurs and advisors. 

7. Embed financial resilience

Instead of waiting for a crisis to worsen, take proactive steps to build financial resilience for your business. In this regard, it’s best to: 

• Adopt frugal living tips.
• Reassess expenses and make strategic cuts.
• Renegotiate vendor contracts.
• Inculcate cash-conscious behavior in the organization.
• Build an emergency fund to fall back on in case of hardship.

The final word

Remember, an enterprise can only last if it responds nimbly to environmental changes. Use the strategies above to prime your small business to adapt, withstand continued uncertainty, and emerge stronger afterward.

Want to know more about risk management for your small business? 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.