3 Ways to Preserve Your Company’s Survival when in Crisis

Posted on: June 6th, 2017

preserve your company C-R-I-S-I-S is a six-letter word that can hit your business and your bottom line at any given time. Whether a loss of a large customer, a sudden lawsuit or a business accident, a crisis is unavoidable and often appears when least expected.

Small and large businesses generally spend little time thinking about the vulnerable areas of their business in the context of a crisis. They are too caught up in the day to day activity.

Nonetheless, there is a playbook that works to get through a crisis. Here are three steps to help you bring things under control:

Get clarity on the situation:This first important step is the most crucial. Resist the temptation to react without taking stock of the situation. Take time to evaluate the crisis as this will help you determine the full scope of the situation before proceeding. Try to get as much data as possible, and delegate work to get the job accomplished as quickly as possible.Depending on the crisis, a public announcement or response will be expected, so time management will be critical.
Communication is the key:Whether it is informing your team, company employees, stakeholders or the public, don’t stall and keep them in the dark. The reputation of your company depends on clear and timely responsiveness. Decisiveness and transparency are critical.A delayed response or choosing not to communicate will only increase anxiety and damages the business. People respond to leaders that get out in front and tell the truth, regardless how bad it is.
Develop an action plan:Your action plan is what will help you effectively handle the crisis. You can seek advice from mentors and/or trusted colleagues to get a clearer view of the best tactical steps to take. Both communication and management of the crisis will require sustained action over an extended time period.Things will take a will to return to normal and you cannot let up, even if you think you are in the clear. Your action plan should take you through the entire cycle.

The most important thing to remember is to never panic when a crisis threatens your business. Take a deep breath and step forward to face it. Once the crisis is over, there will be ample lessons to learn, making you stronger and better prepared to face future issues.

In the acquisition financing arena, capital availability is destiny as companies require reliable access to capital to grow over the long term. Unforeseen capital needs usually arise when acquirers least expect it. This can cause some concern for the acquisition financing provider, especially when covenants tighten up and that working capital availability is utilized faster than expected.

Mezzanine debt borrowing is usually a straightforward activity that many companies use for funding of transitional growth. Mezzanine debt lenders are highly transparent about their due diligence approach and their post-closing loan management making it easy for companies to engage with.

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