Being an entrepreneur in a crisis is like being a sailor in a stormy time. Once you pull your head out, the wind beats your face, as well as those harsh, cold rains. Entrepreneurship involves high risk, and we suspect you understand that, for early entrepreneurs, it depends largely on inexpericedness and realism about the resources that can be mobilized.
Crisis periods, such as those caused by the coronavirus pandemic that we are currently experiencing, are similar to sea storms, when the helmsman must demonstrate self-balancing, transfer confidence to the crew, and steer the ship safely in calm waters. Of course, inferring this is similar to running a company in a crisis when the leader has to go in the right direction.
We’ll discuss these things in this article, where we’ll reveal six very important entrepreneurial tips to get through the storm:
1. Pass on the confidence and safety of the “crew”
In any crisis, leaders need to know how to keep employees, collaborators, and customers close and be the “captains” who manage the company as rescally as possible, so that critical times are not there. In a storm, each member of the team must act with care and discipline and make the best contribution. Then, company leaders must be brave but cautious, not take unnecessary risks, and motivate all employees to do the same.
Compassion, transparency, calmness, and optimism are other characteristics that convey trust and security to employees and other partners. In times of crisis, all these qualities are like puzzles, pieced together to help leaders keep the company running, and no one on the team needs to jump out of the boat.
2. Pay attention to financial management
Financial management, which can often distinguish between profit and bankruptcy, is something that any leader must consider, whether in times of crisis or not. In this case, however, it is even more important to consider this. Troubled cash flows can lead to complex situations and distract attention from basic activities.
In this regard, a convenient solution for small businesses that cannot afford their own accounting sector is to outsource these activities in order to gain a protective net in a predictable tax ecosystem, with many changes sometimes occurring on a monthly period of legislation.
3. All one by one
Another very important thing that the captain has to pass on to the whole team is that we are all in the same boat. A leadership team that is proactive and responsive, rather than just responsive, is more successful in helping people in turbulent times. Because this fact has another important resource for releasing this group: the gift of solidarity.
4. Take security measures
Strong storms mean danger, so safety measures are enforced under any circumstances. Preparing for the company and employees must be one of the tactical measures. People worry about their basic needs, their salaries, so it’s important to focus resources on action to best help the company and its employees.
For each company, depending on the type of business, this can mean narrowing the scope of projects in the risk area, slowing down development, and at least shelving projects that rely on realities that are no longer effective.
5. Communicate transparently and honestly
Even if honesty is sometimes at a disadvantage or may be painful, people want to know the truth and be prepared early. If there is a vacuum in this communication, employees will create their own stories that can challenge fear or confusion, and they will jump out of the “boat” without actually understanding that this could be a new professional experience.
6. Respect your commitments
During times of crisis, many expect previous commitments between employers and employees, customers or business partners to be “dissolved”. However, if you choose to stick to everything you promised before, these moments are the best way to increase your confidence in your business. It’s important to keep your previous commitments so you don’t lose the trust of your employees, customers, or partners and create an image crisis.
A crisis is not a disaster. Often, after such periods, people find qualities and abilities that they never knew about. If this is only a business phase for experienced leaders who have lived through these periods, for those who lead only “sunshine days”, they have the right to safely ashore the company or to be engulfed by a “storm”.