Can Your Business Survive a Crisis? A Reality Check

 

"Houston, we have a problem."

This winter has been a mess in the Midwest. We’ve been hit with frigid temperatures, snow up to our eyeballs and weather record-breakers.
But it’s to be expected, given the geography, history and climate of our area.
Which is why I was sort of surprised that so many businesses were caught with “their pants down” and operating so poorly, (if at all) this year.

Earlier this week, for example, I had to wait an hour after a store’s designated hour to open, because the bad weather “caused an outage” and prevented the electronic cash registers from operating properly.
In the time I waited outside the store, I counted close to 10 people (potential customers) who walked away and took their business elsewhere, due to frustration and time constraints.

According to the National Federation of Independent Business:

A quarter of small business owners experience significant crises each year

Forty percent of owners who experience crises close up shop

Disasters happen.

A similar scenario happens with freelancers who are not “equipped” for unexpected emergencies: a computer virus, loss of a major client or vendor, an illness, a tax audit.

• Are you prepared for potential “storms”?
• Do you have a “plan B” for your business?
• A worse case scenario strategy to protect your bottom line?

Of course it would be totally unrealistic to expect to protect and provide for all types of emergencies and acts of God. But that doesn't mean that we should not have a contingency plan in place, think strategically and operate from a greater position of strength in 2019.

1). Have a back-up for important information stored on your cell phone.

So many folks today practically "live" on their phones. They store credit card information, passwords, clients' phone numbers, security codes, intimate photos, etc.
What happens if your Smart Phone is stolen? Or compromised? Or gets in the wrong hands? That's not a "smart" idea.
Believe it or not, I still keep and use the old-fashioned address books where you actually write down names, addresses, birthdays. I also take zerox copies of my credit cards and keep them in my financial file folders, just in case. This is not a bad idea for you to do as well.

2). Have an emergency fund set aside to cushion the blows of the freelance life.

You know the script: one month you're drinking champagne and "ballin'," the next month you're eating Ramen Noodles and searching for loose change under the couch cushions.
Whether it's an unexpected government shutdown, the loss of a major client, or an illness that prevents you from working for a week or two, you've got to cover your asset$.
Consider this alarming statistic. Careerbuilder.com reports that about 78% of Americans live from paycheck to paycheck.

3). Never wait until the last minute to complete important tasks.

Sometimes we create our own "fires" by not using our time wisely, not prioritizing properly, or simply procrastinating. Then situations and expectations can quickly go into "emergency mode."  You have a looming deadline with a client; or a deadline with an editor; or you have to work late on your 9 to 5 gig, without much advance notice. To be on the safe side, always work ahead of your deadlines and leave "wiggle room" for assignment turn in dates.
Rushing can cause needless errors, diminish the quality of your work and your reputation.

4). Have supportive alliances and trusted relationships.

My computer guy, Emmanuel, has been a blessing over the years. I can count on him to fix my computer on the spot; troubleshoot technical issues; and give me flexible payment plans in an emergency. You'll find that your long-term survival may depend on help from other freelance writers, or tech support people, or book store owners. To quote a popular song: "I get by with a little help from my friends."

5). Consider Legal Pre-Paid Services.

Having the legal support of qualified attorneys is priceless. Depending upon your legal plan, your geographic location, your budget and your desired coverage, these attorneys can help you: secure copyrights; pursue clients that fail to pay you for your work; and evaluate publishing contracts to ensure that you don't lose your shirt. Read more at Legal Shield. Note: results may vary.

6). Have adequate insurance.

Whether it's health insurance, home owner's insurance or car insurance. A lack of coverage can be detrimental to your finances and the future of your freelance business. Did you know that many writing organizations offer different types of insurance through your membership benefits?
Here's a relevant listing for informational purposes:

https://pen.org/health-insurance-for-writers/

7). Preserve your health.

It's your most important "commodity" and resource. "Health is the greatest wealth."
 --Ralph Waldo Emerson


WRAPPING THINGS UP HERE...

In the words of actor and entreprenuer Will Smith: "If you stay ready you don't have to get ready."
Ready, set, grow!


Ready to hear your thoughts today.
Agree or disagree?  In which category are you lacking?


Image credit: Pixabay.com