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How Small Companies Should Prepare for a Crisis

Small businesses face a unique set of challenges when it comes to dealing with a crisis. It’s important for owners to be proactive and take preparatory steps. The following tips will help small businesses prepare for and manage a crisis.

  1. Develop a crisis management plan: Small businesses should develop a crisis management plan that outlines how they will respond to it. The plan should include who will be responsible for managing the crisis and what steps will be taken. It should also include a communication plan that outlines how the company will communicate with employees, customers, suppliers, and the media.
  1. Monitor the news: Small businesses should monitor the news for potential crises that could affect their business. If one is imminent, the business should be prepared to take action quickly.
  1. Consider the potential risks: Small businesses should assess the potential risks that could lead to a crisis. This includes evaluating the potential for natural disasters, cyber-attacks, product recalls, or other types of crises. The business should also consider how it could mitigate these risks.
  1. Create a crisis team: Small businesses should create a team that is responsible for managing the crisis. The team should include representatives from various departments, such as marketing, customer service, and operations.
  1. Prepare a statement: Small businesses should prepare a statement that outlines the company’s position on the crisis. The statement should be clear and concise and should be reviewed by legal counsel before it is released.
  1. Communicate with stakeholders: Small businesses should communicate with stakeholders, such as employees, customers, and suppliers, about the crisis. They should provide accurate and timely information and should be prepared to answer questions.
  1. Take responsibility: Small businesses should take responsibility for their actions and should be prepared to make necessary corrections. This may include issuing a public apology or issuing refunds.
  1. Review and adjust: After the crisis is over, small businesses should review the situation and make adjustments to their policies and procedures to prevent a similar occurrence in the future.

By being proactive and taking steps such as developing a crisis management plan, monitoring the news, assessing risks, creating a crisis team, preparing a statement, communicating with stakeholders, taking responsibility, and reviewing and adjusting policies and procedures, small businesses stand a strong probability of successfully navigating and managing a crisis.


Eric S. Degen, CPA Titan Accountancy, LLC