How many small business owners have a crisis management plan?
Far too many owners of small businesses think that crises only happen to large companies that spill oil or inadvertently release toxic fumes into the atmosphere.
This is not always the case.
Over the course of a month, think of how many people you have done business with. Is every one of them happy or is there someone out there ready to make trouble for you? If that happens, what will you do? How are you going to respond?
Just losing one or two principle customers, particularly for a small business. can have a really negative effect.
Every company, big or small, needs to have some form of a crisis management plan. Don’t wait until you are in the middle of a crisis to try and figure out what has to be done.
Public relations experts when talking about crisis management use the analogy of the words printed on a rear view mirror — objects in the mirror are closer than they appear. This is a segue the first step in crisis management which is to take a close look in the mirror to examine where your company is vulnerable.
When you do look in the mirror the key is to be honest and objective. Your vulnerability may not be the big crack in the tank but something as simple as how your employees deal with customers or even your suppliers.
However, if you do find yourself in a difficult situation, you need to have a plan that will enable you to communicate effectively and with the appropriate answers.
Assuming you have taken the time to do some self-analysis and now find yourself in some form of crisis, big or small, here’s some basic strategies that you can put in place to protect your business.
If you work for yourself you are on the hook for everything, that’s pretty obvious, but if you have a number of employees you should establish a crisis team to help put together a plan of action to deal with the issue at hand.
One of the first tasks for the team is to determine an appropriate message or position with regards to the crisis. Was it caused by poor judgement, poor quality control or something beyond your company’s control? Who will be the designated spokesperson, you the owner or a manager who deals specifically with the area of your business facing the crisis.
The team should decide whether is it something that can be contained within the company, a small external audience or is it an issue that has been given media attention and will require a broader approach?
What communications vehicles are best used to communicate the message? What kind of collateral materials will be necessary to support your message?
If you feel that you cannot afford to hire and expert, there are plenty of self-help publications and literally thousands of websites where you can get information on how to prepare for a crisis.
When it comes to dealing with a crisis, your best chance for a favourable outcome is to develop a sound crisis management plan well in advance.
Here’s some 'dos and don’ts' you should keep in mind when dealing with a crisis.
First the 'dos'
Act quickly to deal with the situation.
Identify your key audiences.
Choose a spokesperson.
Tell the truth. If you are wrong, own up to it.
Do whatever is necessary to correct the situation.
Be accessible.
Ensure your communication’s messaging is consistent.
Now here’s some 'don’ts'
Don’t try to avoid the issue.
Don’t try to wing it.
Don’t assume news items are your only vehicle for communications.
Don’t ever say, “no comment” or “this is off the record”.
Don’t be caught unprepared.
One final thought — don’t ever think it will never happen to me. Even charities, religious organizations and those with good intentions can find themselves in a crisis situation.
Joe Smith is a communications consultant and an accomplished fine artist. He can be reached via email at joesmith@shaw.ca