Effective crisis management for SMEs

A crisis can affect any company. Especially today, hardly any industry can save itself from the effects of the corona pandemic. However, due to the current situation, it is mainly small and medium-sized enterprises (SMEs) that face major challenges. For more than a year now, the corona virus has had an impact on the economic situation and thus on a large number of German companies. Many entrepreneurs fear for their existence. Restaurateurs and retailers are missing out on sales, with fixed costs such as rent, electricity and wages having to continue to be paid. There are around 4.5 million small and medium-sized enterprises in Germany, which contribute a large part of the German economy. The corona crisis is hitting this sector particularly hard. But this crisis can and must also be overcome.

In addition to government funding and assistance, crisis management within a company also contributes enormously to crisis management. We will show you how you can implement effective, modern and long-term crisis management in your company, particularly with regard to the corona pandemic.

Prepare yourself for potential crises!

Successful crisis management requires a functioning structure and smooth processes and processes within the company. Crisis situations often arise some time in advance. A sophisticated infrastructure enables you to identify at an early stage and therefore act quickly. Despite all of this, companies can also be hit suddenly by crises. This is shown recently by the corona pandemic, which has had an enormous impact on the economy for some time. This crisis hit many companies unexpectedly and suddenly, which is why they had to resort to acute crisis management. Such a situation has never existed before and is particularly challenging for SMEs. An existing crisis team enables you to always act safely, even in acute situations. Therefore, prepare emergency measures for various crises as early as possible, which you can then immediately fall back on.

Early process optimization, such as sophisticated infrastructure for using the home office, is ideal for this purpose. An organized arrangement of customer contacts so that you can reach them directly also allows you to act quickly in acute crisis situations. Sector-specific measures can be taken with regard to small and medium-sized enterprises. For entrepreneurs in the catering sector, it is a good idea to focus on taking food with them. As a result of the recent events of the corona pandemic, a large part of the catering industry is already offering “to-go” food. In order to be able to save valuable time in this case, consider in advance which measures you can implement and to what extent. For example, you are already setting up your homepage for ordering food online. Inform your suppliers about your planned project and calculate in good time which orders they should place and what costs they must expect. Prepare to communicate with your customers as well. Social media channels such as Instagram or Facebook are ideal here, where you can inform your customers directly and quickly about the new “To-Go” offer.
Precautions can also be taken in the fitness industry. Specifically, this includes preparing online courses or virtually conducted sports sessions. For example, find out early on the options for conducting online courses. Here, too, you should pre-calculate the time required and costs.

‍

Don't panic!

The initial reactions to new and acute crisis situations are usually panicked at first. Bad news often comes to you all of a sudden. However, it is important to keep cool even in such situations. For many entrepreneurs, the current situation regarding their company in the midst of the corona pandemic seems hopeless. The lockdown, which has now been extended once again, and the expanded requirements and measures are making it difficult for many SMEs to return to everyday business. Many companies barely generate any more revenue and are already at the lowest limit.
Even in such a difficult situation, try to collect your thoughts clearly. Keep an eye on crises that have already been overcome and orient yourself accordingly. It is important that you accept the current crisis as such. See this as another challenge that can help your company and team continue to grow.

Stay optimistic!

As already mentioned, some crises initially seem insurmountable. A lot has changed since 2020. Small and medium-sized companies in every sector are severely affected by the corona crisis. The fundamentally falling demand from customers and the resulting lack of turnover reinforce the often pessimistic thoughts of entrepreneurs.
Despite this, try to look to the future with optimism! The common message of many German SMEs is “We won't let ourselves get down!” Build on this idea and consider what positive aspects you can draw from the current situation. For example, against the backdrop of ever-increasing digitization, online sales is a good idea. Many companies now rely on online shops in order to be able to continue selling their products and/or services. Make your mindset and your company flexible and adaptable. New challenges mean change at the same time. Don't shut yourself off from this one. The basis is always a positive and optimistic corporate culture.

Guide and motivate your employees!

A motivated and productive team is sometimes one of the main components of successful companies. In crisis situations, however, this too is enormously burdened by often high levels of stress. Try to encourage your team to support and understand them. Individual needs often take a back seat in exceptional situations. A variety of tasks, a stressful working day and overtime are hard to avoid. However, these should not last over a longer period of time. The appreciation and perception of the individual team members of the company is particularly important when dealing with difficult tasks and new challenges.

In the current situation, working from home provides support for the majority of employees. If you have the opportunity in your company, take advantage of it. In addition to equalization, for example in open-plan offices, working from home also plays an important part in crisis management.

However, ensure adequate communication, especially if you are working from home for a longer period of time. Many employees miss direct contact with colleagues and feel left alone, sometimes even clumsy. To counteract this, there are daily meetings, for example, in which all team members can briefly exchange ideas. A consistent but also understanding appearance on the part of management is decisive for motivating employees. It is important that you can provide peace and security despite the current crisis situation. The corona pandemic and also the economic situation affected by it are of great concern not only to entrepreneurs. Employees also often suffer from the fear of permanently losing their jobs. In such situations, encouragement and cohesion within a company is particularly important.

‍

Support each other!

The corona crisis is affecting many other companies in a similar way to your own. Don't be afraid to ask your network for assistance. Also offer your help in return. In this way, you can also stabilize and expand your network. Your business partners also play a fundamental role in crisis management. Therefore, always look for reliable and steadfast partners in your corporate network. Business partners and/or consultants can point out and assist you with possible points of contact regarding government assistance. Here You can find further information and a detailed list of possible bridging aids.

‍

Plan for the future!

The best way to keep your crisis management effective in the future is to look to the future. On the one hand, you give yourself and your company the chance of a positive outlook after a severe crisis period, and on the other hand, planning is important to prepare for future crisis situations in the long term. In principle, you should define the levels and areas in your company and, if necessary, assign them to departments. If you have the capacity, a crisis manager is also available. This person can plan how to deal with current and future crisis situations. In this way, you can take a differentiated look at problem areas, products or services as quickly as possible in order to identify how the individual areas are affected. Parts of your company are often affected to varying degrees.

Future-oriented planning is also crucial for future crisis communication. Try to clearly define the direct channels of communication even before a crisis situation occurs. A specific example of this can be found in the catering sector or in retail. Depending on the initial situation, companies are offered the opportunity to open up or resume sales under strict conditions. This is often dependent on incidence and is therefore decided within a few days, sometimes even hours. Managing directors of a catering establishment must therefore be able to reach employees, suppliers, authorities and customers as quickly as possible in order to be able to distribute both the goods and the staff, etc. in good time for opening.
Take up the digitization offer as well. This enables you to communicate quickly and directly. This has also proven effective when it comes to working from home. Many companies will continue to build on this concept in the future. This can sometimes be attributed to government support for the digitization of companies, for example by Bridging aids, promotes. The digital infrastructure, particularly in small and medium-sized enterprises, is constantly being expanded. With the corona pandemic as a trigger, many companies saw the opportunity to take advantage of technical progress. When it comes to modern crisis management, hardly any aspect is more serious than the factor of digitization. With regard to the future, companies that have already set up the home office concept, for example, have a decisive advantage, because crisis management benefits enormously from existing and sophisticated processes and structures in the company.

conclusion

The corona pandemic is challenging many companies. In some industries, this is causing an existential crisis that has never happened before. Some of the particularly severely affected SMEs see little way of surviving them. Many are already forced to close their company permanently. Even though the current situation presents many entrepreneurs with a major challenge, this too can be overcome. With effective crisis management and an optimistic view of the future, you and your company will overcome this crisis!

With our WLAN marketing package, your customers/patients/guests advertise for you, are happy and recommend you to others.