1. Foresee where your business is at risk
To survive a crisis, you must understand both the external and the internal risks your business could be exposed to. Natural disasters are an example of an external risk, while the loss of key staff is an example of an internal threat. As calculating risks is an abstract task, we found it helpful to visualise your businesses’ risks. Using a matrix, as shown here, you can quantify the level of impact and how likely the risk is to occur.
2. Track your finances
Keeping your risks in mind, it is essential to have an action plan for your finances that addresses all types of risks. Two key indicators are your burn rate (the monthly spending of your business) and your runway (the amount of time you can operate if you bring no more revenue into the business from today). Set aside cash reserves that get you through at least three months without any revenue. Involve your team in your action plan, as your staff could also be affected by reorganization through part-time solutions or interim contracts.
3. Create a communication plan
As your business probably depends on staff, customers, or suppliers, identify your key stakeholders first. After that, create a communications plan based on your response to the crisis, and make sure to define which members of your team are responsible for taking action on the plan.