13 Tips to Help Small Business Leaders Plan for the Unexpected
Whether you are just starting out in business or have been a credible brand name lauded in the industry for decades, it's always critical to take a regular assessment of your areas of potential vulnerability—from business deals and investment opportunities to customer behavior patterns and satisfaction with a product or service. This will enable the organization to better prepare for and navigate through marketplace uncertainties—and be more likely to overcome the odds.
In a global economy that is constantly evolving in a digital age, it's essential for company leaders to protect their teams and their business by staying up to date on the latest consumer trends and market regulations so that they're able to exceed expectations and remain in compliance at all times.
Here are 13 tried-and-true best practices from Forbes Business Development Council members.
1. Be Equipped to Fill Unexpected Consumer Needs and Trends
Be nimble—if outside factors could impact your business, be ready to “move” into adjacent areas. Instead of focusing entirely on investments for new product development, think about how your existing products can benefit adjacent industries with minor adjustments. For example, during the pandemic, clothing manufacturers transitioned into producing face masks, and cosmetics manufacturers began making hand sanitizer products. - Matt Lowe, MasterControl
2. Continue to Test Potential New Products and Services
I think the best risk management plan is actually more about evolution. Resting on your laurels is a surefire way to get caught off guard by changing market conditions. Are you constantly evaluating your selling approach, general and administrative expense layers to see how you can drive efficiency? Do you have a solid biz development team testing the market fit for new products or services? - Ryan Northington, Simplus
3. Create a Strategy That Is Flexible, Adaptable and Proactive
In the culture of a “new normal,” leaders should have a risk management strategy that is flexible, adaptable and proactive to navigate uncertainties. Implement a comprehensive risk management plan that includes identifying potential risks, assessing risks, developing risk response strategies based on the risk assessment, implementing and monitoring risk response strategies and continual reassessment. - Quyen Pham, Swoon
4. Seek Legal Advice from a Regulating Authority
Always refer to any current regulatory framework, or as close as it can get, and seek legal advice. Penetrating new markets comes with the risk of regulatory changes, especially when there are little to no regulatory guidelines. Contacting and communicating with a representative from a regulating agency that could look over the technology or products you are building could also save you from future challenges. - Laura Vidiella del Blanco, LedgerPrime
5. Apply Contingency Plans That Are Sound and Reduce Negative Impact
A sound risk management plan will identify potential risks, assess their likelihood and impact and include strategies to minimize or mitigate them. This can include establishing contingency plans and implementing controls to reduce the likelihood of negative events occurring. By putting these measures in place, organizations can be prepared to handle unexpected challenges and uncertainties. - Chris Schmidt, Esq., Le-Vel
6. Lean on Market Intelligence and AI Insights
Market intelligence is vital during uncertain times. In addition to the usual resources, seek insights from industry peers, vendors and customers. Determine scenarios (best, worst and most likely) and possible actions based on those. Reevaluate assumptions frequently and adjust the plan accordingly. Management of working capital and allocation of investments to top priorities are also crucial. - Rosandra Silveira, Dell Technologies
7. Invest in Smart Ways to Upskill Your Best People
The best risk management investments you can make in down markets and uncertain times are investments in your people. Make sure you retain your best people and spend any downtime upskilling your team. Coaching, training and mentoring good employees will position your organization for creative problem-solving, rebound growth and maximizing future opportunities. - David Mattson, Sandler
8. Delegate Responsibilities to Key Stakeholders
Risk management plans need to be proactive and prescriptive so that businesses can navigate risks with confidence, not panic. Plans should consider pending regulations on the horizon, and outline contingencies should those regulations occur. It is critical to assign roles for team members central to the plan, delegating responsibilities that enable a fast-paced adoption of relevant new protocols. - Matt Bradley, Crisis24
9. Apply Automation to Eliminate Process Errors
Business leaders can put in place a risk management plan that includes the use of intelligent automation to eliminate any errors by automating operational processes. This can help you navigate uncertainties, such as market regulations, by reducing the potential for human error and improving efficiency. Another important part of your plan should be regularly updating the plan to ensure it remains effective. - Gilberto Marcano, OpenBots
10. Keep Your Plan Active and Solid for the Ever-Changing Market
A solid risk management plan is a moving target. It should be more than just a document that sits on the shelf. It reflects the dynamic state of the business and adjusts based on the ever-changing conditions, such as market regulations, competitive dynamics and financial situation. It should include business continuity and disaster recovery planning to ensure the brand and reputation of the business. - Oscar Chavez, Growthly Group
11. Monitor And Review the Risk Regularly
Leaders should consider monitoring risk and review on a regular cadence in leadership meetings. Among the many risks that leaders face, market regulations are crucial. If your company is not in a position to influence policy, the next best thing is to be ready to turn each of those policies into your business advantage. - Serrah Linares, Change Healthcare
12. Stay Informed About Proposed Legislation
Frequent contact with your government affairs team and routine listening to publicly available federal and state legislative activities go a long way to understanding where the regulatory winds are blowing. Anyone can monitor public comments for proposed rules at regulations.gov or subscribe to one of many legislation tracking providers to understand the legislation being proposed. - Barry Reicherter, Finn Partners
13. Equip Your Team for Long-Term Success
Reinforce your team and focus on preparedness. Risk management starts with you, your team and your level of readiness. Ensure that you have the proper tools, outlets and counsel in place in advance to help navigate any existing and potential future uncertainties that may come your way. - Ray Schultz, Liquid Rubber
This article was written by Expert Panel® from Forbes and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to legal@industrydive.com.
