A crisis can happen in any business in any industry, and leaders must be prepared to take action when one does. Whether a newly launched business is affected by a natural disaster, inadvertently sells a defective product or has an employee publicly criticize the company, it’s important for its leaders to have a strategy in place to deal with a crisis.
Leaders at larger companies may have a board of directors to turn to for guidance, but many entrepreneurs lack that sort of advisory presence when they’re first starting out. Below, 15 Forbes Coaches Council members share their best advice for new business owners. See their insights for steps to follow when managing a crisis.
Forbes Coaches Council members share steps every new business owner should take when a crisis arises.
Photos courtesy of the individual members.1. Stay Grounded
When managing crises, it is essential to stay calm and grounded while assessing the situation by gaining much-needed clarity before starting to make calls or decisions. Stepping up in a calm, confident and courageous way will minimize escalation and mobilize others to provide needed support. Asking the right questions is essential in addition to seeking help. This is an excellent opportunity to shine as a fearless leader. - Izabela Lundberg, Legacy Leaders Institute
2. Be Honest And Responsive
If you need to handle a crisis as a manager, taking ownership when things go wrong or simply sharing what’s real shows responsibility and integrity. Being responsive shows your care and attention and allows you to direct the story and action, instead of having other people make assumptions ahead of you. To get there, gather your team, get feedback and take action. - Cheryl Breukelman, Epiphany Coaches Inc.
3. Seize The Opportunity To Make Big Changes
Engaging an outside expert—a business attorney, for example—is always helpful and reassuring when handling a crisis. But the one thing that many business owners miss is the opportunity to seize the moment to make big changes that would otherwise not be possible. Winston Churchill’s famous quote from the 1940s during World War II was prescient: “Never let a good crisis go to waste.” - Ben Levitan, Cedalion Partners
4. Don’t Handle It Alone
In the face of a crisis, speak with trusted family or friends with business experience. If that’s not an option, a professional such as your accountant, business lawyer or coach is a good choice. However, as many new businesses aren’t flush with cash, look at free resources that are offered by the government or your industry/professional association. Mentors are often available through these resources. - Kim Neeson, Kim Neeson Consultancy
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5. Figure Out Who Can Help
Define the following when dealing with a crisis: Who do I need to talk to? Who can help me find a solution? Are there any employees who have experience in this area? What are my options? What are the pros/cons of each option? Which choice will allow me to better serve my customers and maintain brand image? What resources do I have available at my disposal (time, money, people)? How much time do I have before it’s too late? - Willena Long, Career Boss Academy
6. Reflect Before Acting
When a crisis arises, the first instinct of most leaders is to act. However, the most complex situations often require reflection rather than immediate action. That moment of pause to critically evaluate response options and to seek out other perspectives will enable better outcomes and ensure that the leader’s ultimate actions reflect the best collective thinking of their network. - Precious Williams Owodunni, Mountaintop Consulting
7. Prioritize Important Issues
Prioritize the issues that, upon resolution, will have the greatest impact on the crisis at hand, and begin tackling one thing at a time. When an issue arises that requires a broader perspective than you alone can provide, reach out for support from your existing networking. During this time, build the foundation for ongoing, mutual support to ensure that help and idea-sharing flow both ways. - Cathy Lanzalaco, Inspire Careers LLC
8. Listen To Understand The Impact On Stakeholders
When a crisis arises, a business owner should listen to understand the impact on stakeholders. Ask questions to understand the crisis and discern its impact so that you can respond without emotional duress. With a thorough understanding and emotional control, you will be better equipped to solve the right problem, involve people who can help, outline a communication strategy and manage your reputation. - Kelly Byrnes, Voyage Consulting Group
9. Seek Advice From Experts
Seek out experts with whom you can collaborate in times of crisis. I would suggest a contract crisis manager or organizational effectiveness consultant. They can help gauge the true scope of the crisis and help formulate a plan of action. They also will likely have resources or contacts who could be pulled in to help. - Karan Rhodes, Shockingly Different Leadership (SDL)
10. Pause The Fight-Or-Flight Response
The immediate reaction is to put out the perceived “fire.” Often, the crisis isn’t as big or bad as the new business owner is experiencing it at that moment. Reacting emotionally is a fight-or-flight response. It wastes energy and precious time. Pausing allows blood to reach the most powerful part of our brain—the frontal cortex—so we can be thoughtful about how to respond. - Angela Cusack, Igniting Success
11. Be Agile And Focus On Proactive Actions
Find the right people and empower them to make the decisions they need to make. At times of crisis, organizations need to be agile and not limit themselves to reactive thinking. Organizations that try to focus on proactive actions do better in the long term than those that may have collapsed due to crisis conditions. - Shamila Mhearban, Shamila M. Ltd
12. Create A Personal Board Of Directors
Just because a new business owner does not have an official board of directors doesn’t mean they don’t have friends or former colleagues or classmates. I would recommend anyone going into business have a “personal” board of directors—people who are willing to give guidance when objectivity is required. They can also join small business advisory organizations or other peer coaching networks. - Wendy Fong, Chief Gigs
13. Gather The Team And Start Acting While Talking
The first thing business leaders need to do in a crisis is to gather the team and identify the type of crisis, its impact, its mitigation and who owns action items—and start acting while talking. Don’t try to solve it on your own. Trust the team of experts you have in your organization. - Aina Alive, Bee Agile
14. Assess The Situation Calmly
Take a step back to assess the situation calmly and rationally. Notice when thoughts and decisions are being driven by emotions and when logical, rational and calm thinking is able to add some balance. Always be communicating as clearly and openly as possible. No one expects you to have all the answers, but they do expect you to be working toward answers and to let people know where things stand. - Michele Cohen, Lead to Growth Coaching
15. Slow Down And Gain Clarity
Emergency responders are taught to remain calm when they encounter an emergent situation, to never run in the direction of the emergency. Why? Because they may miss key details and/or become injured, leaving them incapable of helping anyone, which would not be ideal. The first thing to do when a crisis arises is to remain calm—do not panic. Sit. Close your eyes. Slow down. Breathe slowly and deeply. Gain clarity. - Natasha Charles, Intuitive Coaching with Natasha Charles
