12 Things to Ask to Stop Business Crises Before Havoc Ensues

Perhaps even more than the lure of money, optimism dominates the entrepreneurial mind.

During the recession, more Americans have become entrepreneurs than at any time in the past 15 years, according to the Kauffman Index of Entrepreneurial Activity. With the economy in a slump, more people chose business ownership.

History tells us that many of these enterprises will fail. Yet, even taking the step is an act of incredible optimism, particularly since others talk about “going into business” but never act.

Any talk about a downside is intolerable to the entrepreneurial spirit. Optimism trumps all challenges, including recessions.

While a positive attitude is essential in business, ignoring the downside can spell trouble and even worse – and the best way to avoid crises is to head them off before they take their toll.

What If?

One of the best ways to think about the unthinkable is to ask “what if” questions. Here are a dozen worth considering.

• What if we outlive our value? It can and does happen. Even though we see it in other enterprises, we have great difficulty in recognizing it in ourselves. It’s prudent to ask, “What should we do to make sure we never outlive our value?”
• What if we drag our feet with technology? The vast majority of small- to medium-sized businesses act as if customer data is unrelated to their success. They are ignorant of how to leverage technology to better target customer preferences, buying cycle stage and sales opportunities. Customers know when they are being ignored and taken for granted.
• What if a new competitor moves in on us? It’s easy to be blindsided, to wake up one morning and say, “We have a problem.” Staying on the offensive is critical, but having a defensive strategy is equally important. Getting caught off guard can lead to negative consequences.
• What if we lose a major supplier? You may think certain vendors love you. But just remember: “Love is blind.” Too often, businesses see what they want to see — and then it’s too late. Make sure your options are lined up.
• What if we don’t know what we don’t know? Businesses are often “closed systems,” more akin to “solitary confinement” than they are to classrooms. Employees know the topics that are “off limits.” Is it any wonder that some companies fail to meet new challenges?
• What if a key person leaves? It always happens. It will be the one you “can’t do without.” But that may be the person who specializes in maintaining the status quo, who impedes change. When the indispensable person makes an exit, the door of opportunity opens wide.
• What if our market changes? Acknowledging change is like pushing a boulder up a mountain. It isn’t easy. GM did it for decades and Research in Motion had to hit the ropes before admitting it was faced with a life threatening problem.
• What if we have a serious problem that impacts our customers? Plan on it. It will occur. That’s why having a plan ready is necessary. Denial is not a plan, neither is trying to put a “spin” on it or hiding from the media. That leaves one option: being candid and clear, i.e., tell the truth.
• What if marketing and sales don’t get along? Unfortunately, “sacred silos” are alive and well. Companies struggle with collaborative efforts between marketing and sales. One solution may be marketing technologies that allow flexible, response-appropriate actions based on where the customer is at the moment so data flows seamlessly from marketing to sales and vice versa.
• What if your largest customer leaves? It may be closing its doors, being sold or moving to a new vendor. Whatever the cause, it can raise doubts among employees, customers and other relationships. Many businesses rely on keeping their fingers crossed rather than asking themselves what steps they should be taking to mitigate the effects of losing a large customer.
• What if we drop the ball or mess up a customer’s order? An excuse is the last thing a customer wants to hear. Yet, we continue making excuses rather than offering explanations that make clear what we’ll do to assure customer satisfaction.
• What if we get a negative online business review? It can happen to any business today. The smartphone is driving this. Consumers can “do it now” before anger cools. If you have good reviews, a poor review should not be a problem. Customers are suspicious of 100 percent great reviews. The key is to monitor sites regularly so there are no surprises.

While every business is faced with overcoming challenges, avoiding unnecessary damage is more than worth the effort to think about the unthinkable.