Since the pandemic began in early 2022, there’s been a lot of talk about small business resiliency and business continuity. While we hope there’s no repeat soon of a pandemic, other disasters, whether they are economic or natural disasters, will occur at some point.
What does a resilient small business look like? How can small businesses build resilience? Here we explore ways to prepare your business to prepare for unknown challenges.
How Do Small Businesses Build Resilience?
Writing in the Harvard Business Review, researchers identified several factors that appear to have contributed to small business owners’ success navigating the rapid change in the business environment during the past couple of years. Understanding these factors can help other entrepreneurs prepare for what’s next.
The report, Lessons on Resilience for Small and Midsize Businesses, included these recommendations for building a resilient small business:
Make sure you have access to capital. Businesses with stronger financial cushions are able to invest in new products or technology to pivot to the next opportunity. While cash in the bank isn’t the only option here; having access to small business financing can also be helpful.
Take advantage of digital tools. Accelerated digitization allowed businesses to meet with clients by video call, for example, or to take and fulfill orders through technology such as apps. One interesting finding from the survey was that those businesses that were successful with a digital strategy didn’t wait until the pandemic to get started. They already had a head start.
Adapting flexible and/or remote work options. Many workers discovered they enjoyed working from home or another remote location, and they don’t want to go back to a full-time 9-5 office environment. Small businesses that can offer remote or flexible work will have an advantage over more rigid employers and may be less likely to experience labor shortages. Some employers are finding great success with a 4-day workweek.
