The COVID-19 pandemic has rattled all industries and dramatically changed the economic landscape. Indeed, a survey by ASU’s College of Health Solutions notes that many businesses were caught off-guard by the global health crisis, as only 36% had any emergency response plans in place. In order to cope during these financially turbulent times, a lot of businesses have made permanent reductions in staff and operations — or worse, chose to close their doors for good.
If your organization is lucky enough to still be standing despite the uncertainties that these times hold, you should make it a point to foster resilience and adaptability now. That way, you can successfully weather out the new normal and whatever future crises come your way. In that regard, let’s discuss a few ways to build your business’ resiliency in a post-pandemic world.
Embrace Diversity in All Forms
Diversity does not only mean hiring people from different cultural and academic backgrounds. Another way to instill diversity in your organization is by creating an environment that nurtures various ways of thinking and approaching things. By encouraging your staff to cultivate their own ideas and uphold their individual perspectives, they can find better ways to collaborate that you may not be able to see through your own lens.
Additionally, diversity of ideas also provides you with better insight on how to respond to future economic predicaments, create foolproof contingency plans, and guide your business to safety. In fact, a study by Boston Consulting Group reports that businesses with diverse management and teams earn 19% higher revenues. This is because having a diverse set of perspectives, experiences, and ideas help enhance innovation in business and create organizations that are effective and resilient.
Have the Right Legal Guidelines in Place
Most business owners think that they’re set for the competitive market once they comply with all the legal considerations required to run an organization. However, it’s also important to carefully study your legal options as this may have a significant impact on your operations and finances.
For one, you should think long and hard if your current business structure suits your business the best. A lot of small and medium-sized business owners don’t give their business structure much thought as the default, which is a sole proprietorship, requires less maintenance and paperwork. However, switching your business structure to a limited liability company (LLC) can help with making your company more resilient, since this separates your personal and business assets. Incorporating as an LLC isn’t that difficult to do either. Consultants at ZenBusiness explain that forming an LLC can be done in five easy steps, namely: choose a name for your LLC, appoint a registered agent, file articles of organization, create an operating agreement, and obtain an EIN. Aside from the added protection for your personal assets, LLCs avoid double taxation. Plus, the requirements for meetings, bookkeeping, and reporting are still less complicated than if you operate as a corporation.
Invest in Insurance
Another legal consideration that will further help your business become crisis-proof is having the right insurance. Business insurance will fill in the gaps when the liability protections don’t suffice. You can choose to either go with a general liability insurance, which protects your business from various legal challenges. Alternatively, you can select commercial property insurance, which protects your business from property loss due to accidents or natural disasters.
The key to helping your business survive most economic instabilities brought upon by extraordinary circumstances is making sure that it’s resilient from the ground up. If you want to learn more about how you can help drive your business to success, be sure to check our post ‘7 Ways To Build Relationships With Your Customers and Clients’.
Article written by Jessica Royce
Exclusively for lancasterleadership.com