Small-business crisis management – why and how forward planning can save you

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There’s a reason people take out insurance – car, home, life, asset, health, pet – because just as the sun sets and the moon rises, things can and will go pear-shaped. 

No one wants to be caught with their pants down, unprepared, nowhere to turn when it does? Not I, said the wolf…and neither should small business. This is why dedicating time to planning for a crisis can be the difference between a ruined reputation and coming out on top.

While crisis management plans are often associated with big business, small business operators should plan how they’ll handle whatever comes their way.

Small businesses work hard to build their reputation and marketplace street cred. That can disappear instantly if the worst happens. With no idea how to handle a crisis, what to say or do, they flounder and look untrustworthy. 

Bad things happen that are out of a business-s control – COVID is a great example. Having a plan in place means a business can respond quickly and with certainty, instead of stress and panic. 

Crisis management planning, incorporating a media management strategy, covers all bases and scenarios, which can mean the difference between surviving a crisis or shutting up shop.

It’s not good enough to ‘cross that bridge’ when a crisis looms. Being unprepared is a recipe for disaster. When a crisis hits, all that prevails is panic, stress, and a sense of being caught in the headlights.

A crisis doesn’t give time to be methodical and strategic about response if the business is acting in a void – that’s catch-up land territory. A plan gives breathing room and space to deal with the crisis with a level head and open mind.

A crisis management plan is insurance for your business – reputation insurance.

A plan is developed by workshopping all potential crisis situations – from the worst possible outcome to the least – and how to respond. It takes the stress out of dealing with the media and all parties involved.  The business knows what to say – key messages, media templates and statements, and everyone knows what’s expected. 

A business needs to put structure around:

  • How to handle the crisis.
  • If the media get involved, who is the spokesperson, what will they say?
  • What about other stakeholders, what do they need to know?
  • How will the business recover? Think about what needs to be in place to get through the crisis.

Tips on managing a crisis

  1. PPPPP – be prepared. Plan for possible scenarios in advance, and practice implementing the plan. 
  2. Be clear on what your key messages are – manage messaging, and don’t  forget social media is a great communication tool.
  3. Lock in who the spokesperson is and get them media trained.
  4. Determine what PR tools will be used during a crisis – media relations, social media, media conferences, media alerts.
  5. Don’t try to be slippery or avoid questions – work with a professional to help cover the business’s rear end legally and reputation-wise. Ban the words “no comment”.
  6. Know the topic – practice key statements.
  7. Stay calm – planning in advance means most bases are covered.
  8. Only speak the truth – if the spokesperson doesn’t know, do not guess the answer.  Reply honestly and find out the answer.
  9. Acknowledge the crisis – don’t hide from it.  Have a statement ready to go to the media.
  10. Show empathy and concern – while a business shouldn’t admit guilt or culpability until checking with a legal team, the spokesperson can still convey humility, concern and empathy.