Council Post: From Transition To Recovery: How To Plan Ahead In Times Of Uncertainty

When a crisis hits your business, it’s all about thinking quickly on your feet. You put out fires and make the best decisions you can with the information you have at the time. After the initial shock passes, you move rapidly into a transition period, creating a new, temporary way of doing business that becomes the “new normal” while you work toward recovery.

And, while recovery is unknowable in many ways, there is one certain thing about it: You will get there just as you did when you started your business — one step at a time.

Planning for recovery while still in crisis management isn’t about having all the answers; planning for recovery isn’t linear. It’s a formula that will be built as you do the math. Your ability to be agile and adaptive will be part of the equation. It will be a learning curve that requires flexible thinking. And if anyone can be tested in this way and become stronger and wiser, it’s a business owner.

In leading my businesses 23 years and coaching other leaders, I’ve realized that unexpected crises can and do happen to everyone. It’s not a matter of “if” but “when” it will occur. Getting through the immediate shock is only the first hurdle. It’s the aftermath of transition and recovery that is the true test of our ability to triumph. Here’s what I’ve learned about what you can do to move forward in the most effective way after a crisis:

Forecast cash flow in more than one way. If your business needs financial direction in ordinary times, it needs exponential management when the future is unpredictable. To that end, forecast with more than one set of assumptions in mind. Consider creating, for example, three versions of your cash flow prediction: One that assumes a “best-case scenario” of your return-to-normal plan, one that assumes permanent modifications to your business model and one that assumes a slow lift into recovery.

Involve your team in decision-making. If your team is still standing by you as your business pivots and recovers from a crisis, it’s key that you continue to build trust and encourage their contributions. Your employees need to know that their place in the company matters — that their voice matters — even as you create the road map into recovery mode. Find areas where they can help problem-solve. Ask for their feedback. Show them you value their input. Lead with gratitude first, and show genuine appreciation for their work.

Get more efficient with your product or service. If there’s anything you might learn from a crisis, it’s how you might need to change parts of your business for future survival. I’m not saying you’ll need a complete overhaul, but a crisis is an unparalleled opportunity to fix a lot of “ugly” in your business model. This is an opportunity for your business to improve, not merely recover. Restoring your business after a crisis not only means an opportunity to implement new efficiencies, products or services in your process, but also an opportunity to stop doing, creating and selling things that no longer serve you or your customers. A word to the wise: As you yearn for a return to “normal,” be careful how much crazy from your old schedule and to-do list you let back in.

Communicate with confidence and respect. The exact picture of your business might not always be clear as recovery comes slowly into focus. Even so, it’s important to have consistent communications with your client base to keep them informed. They want and expect to see your strong leadership, even if you don’t have all the answers. Send messages at regular intervals that thank them for their loyalty, highlight the positives your business is doing and assure them that your company is taking every measure possible to come back stronger than before.

Remember your identity as a human. In times of crisis, business owners go all-in. Sleepless nights, endless news reports, time-sensitive phone calls and ever-evolving choices are grist for the mill of initial crisis response. But, crisis recovery is not a sprint. It’s a marathon. Remember to pause and come up for air. During your company’s transition to recovery, you must find moments to put aside the business and check in with yourself. Don’t forget your own humanity. Eat. Exercise. Read. Spend time being present with your family. Marathon runners don’t go into race day on empty, and neither should business owners.

Business ownership might not come with a play-by-play handbook, but it does create an opportunity for you to make your own. Make it the best one you can. I believe that as leaders, we are made to be tested — and made to grow. And it’s up to us to design what that growth will look like.