Why Crisis Preparedness Planning Should Be An Essential Practice

A company of any industry must understand that they are always risk from potential attacks. Be it from the media, the government or even the customers, the environment a company survives in is extremely risky. It hence becomes crucial for all companies to come up with a crisis communication plan before hand.

There are only a few times when a potential threat can be predicted before it affects the company. In most cases, the company only becomes aware of the problem once the crisis has already struck. For a company to act swiftly and effectively to reduce damage, it is important for a crisis communication plan to already be in place. Here are a few steps which all crisis communication services advice a company to begin with:

Identify Risks

The first thing that any company must do is identify the risks at hand. This involves any situation which can potentially affect the company in a negative manner. No plan can be made without identifying the risks at hand. It is only after doing so that a detailed plan can be formulated which allows the company to address the risk and not lose profits.

Decide A Planning Team

Once all the risks have been identified, it is time for the company to create their own planning team. For a plan to be successful the company must create a team with both their own experienced employees as well as hiring crisis communication support & services. The reason why both are required is the fact that the employees have detailed understandings of the inner working of the companies while the consultants have experience in terms of crisis communication. Together they will be able to create an effective plan.

Create A Plan

Working together the plan that is created for the company should focus on protecting their core assets. When creating a crisis communication plan, the team must also create a guideline for how the employees of the company must interact with external stakeholders. One wrong word can severely harm the company and hence all employees must be briefed on how they should interact. Heads of the company should also be trained as official spokesman who will be the ones interacting with the media directly.

Prepare And Train Individuals

One of the core elements of a plan devised by crisis communication services and the employees are spokesman. Every company must have a few official senior employees of the company trained specifically on how to talk to the press. From vocals to body language they must be trained to help the company survive the crisis.

3 Tips on What to Do When Your Company Is Distressed

Let’s face it, running and managing a business is not easy, and truthfully, to say that it is would be a downright lie in most cases. In order for your business to succeed, you need to have a smart and proven business strategy in place, but even then, nothing is set in stone in regards to your business succeeding. Even the most efficient of managers and business owners can often overlook the early warning signs of a company in distress, so it’s important to know what to look out for, and to recognise the warning signs early on. If your company is struggling financially, if you aren’t careful, failing to act early, or taking the wrong steps could potentially be disastrous and could even lead to bankruptcy, and nobody wants that. To ensure you act early and save your company before things get worse, here are a few tips on what to do when your company is distressed.

Place an emphasis on cash – Cash, as they say, is king, and if your company is distressed, boy does this ring true. In order to achieve a successful and impressive turnaround, you should ideally place an emphasis on cash returns, and cash itself. In order to do this, you will need to go back to your business roots and take it back to its early days of conception. Basically, it very simply comes down to a case of whether your business is making money or losing it. Going a step further, it comes down to which business investments and decisions are making money, and which are losing money. Put simply, if there are investments or departments in your company that are losing you money, unfortunately they need to go, or at least things will need to change.

Seek out and hold on to talented employees – A company is only as strong as its employees, and as you know, if your company is made up of a majority of incompetent employees, well, you are going to go under sooner rather than later. If your company is distressed and you do require an extreme overhaul, you will need to let go of employees that are holding you back, and replace them with skilled and competent workers that could legitimately improve your business. Advertise wherever possible, hold interviews, seek out references, and trust your gut instinct when hiring, and when you do hire skilled employees, do all you can to retain them.

Seek professional investment from business turnaround experts – Sometimes, if your company is struggling and is sinking, seeking out investment could be your only chance of survival, so you will need to ensure that you make the right choice when seeking an investor. A lot of business go down the insolvency practitioner route, when in reality, that could only make things worse. Ideally you should seek investment from serial investors and business turnaround experts with a tried and tested record. By seeking investment in this manner, not only do you benefit from the funds required to save your company, the business turnaround expert will also help you to enhance your company valuations, as well as your marketing and advertising, which in turn will help to boost and improve your business.

The Forms of Business Risks and Practical Ways of Managing Them

Business risks are the likely dangers that a business enterprise may encounter if preventive measures or safety precautions are not put in place to avoid them. When an enterprise experiences a particular business risk, the entrepreneur should not point finger at witches, ghosts or enemies. They happen as a result of poor planning and failure to set out measures in managing these risks. There are two main types of risks that a business enterprise is likely to face.

These are Direct risks and Indirect Risks.

1. Direct risks- This is a type of business risk that could entirely collapse a business enterprise. They directly affect the enterprise and halts down all of its business activities. Due to the severity of direct risks, entrepreneurs should set out preventive measures of curtailing them. Examples of direct risks include theft, fire, bankruptcy, misuse of capital through irresponsible expenses etc.

2. Indirect risks- This type of business risk slowly causes the collapse of the enterprise. If extreme care is not taken, it can be hidden from entrepreneurs. Like a slow poison, indirect risks if left unchecked can ruin a business enterprise. They are quite difficult to control and account for greater portion of business losses. Examples of indirect risks are lack of sales due to faulty or low quality products, wrong business locations, currency inflation, introduction of new taxes, changes in labour laws etc.

Business risks whether direct or indirect can be managed or controlled. The entrepreneur should be very vigilant and alert in his supervisory role. There should be regular or routine check of stocks and finished products. Only the entrepreneur cannot do this work. An accountant or book keeper should be employed and assigned to check the accounts of the business every month or even daily depending on the size of the enterprise or the rate of purchase of products.

Also, the entrepreneur has to increase vigilance and security by beaming up the security such as employing security personnel and installing security devices. These measures would help minimize or entirely stop the cases of theft.

Most of the fire outbreaks that occur in the enterprises are as a result of faulty electrical connections and appliances. The entrepreneur must employ a qualified electrician to do all the electrical connections or wiring in the enterprise. He has to replace all weak or faulty wires and other electrical appliances to avoid the likelihood of fire outbreak.

Low sales and patronage of the products of an enterprise can be as a result of several factors. Paramount among these is due to the low quality nature of the products and wrong business location. The entrepreneur must undertake training for his staff members while constantly checking for product quality. He has to use quality and durable materials for the manufacture of his products. Furthermore, if wrong business location is causing the drop in sales of products, the entrepreneur should relocate the business to a more promising area where there would be high patronage for his products.

Inflation and constant changes in labour laws can affect the success of a business enterprise. An entrepreneur should be always alert to these changes. He can do this by keeping in touch with the relevant ministries to know what new changes have been planned that may affect one’s business.

It takes a great deal of time and efforts for entrepreneurs to set up enterprises. Owing to this, they must vigilantly guard against any internal or external dangers that might result in their collapse. Identifying and controlling potential threats to businesses is the guaranteed way to succeed.

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