Four Steps Smart Business Owners and Investors Take in a Crisis of Confidence like the fall of #SVB

Four Steps Smart Business Owners and Investors Take in a Crisis of Confidence like the fall of #SVB

In California, when there’s a minor earthquake, keyword searches like “earthquake kit” and “damage assessment” skyrocket.

It’s also at these times that individuals check the batteries in their flashlights because they know they weren’t prepared and feel lucky they were not hurt.

It’s also too late to be doing that.

Emergency managers think of disasters as recurring events with four phases:

· Mitigation,

· Preparedness,

· Response, and

· Recovery

Business owners and investors should do the same.

Even though the FDIC, Fed, and Treasury are offering a backstop for business owners to “make payroll,” events like the fall of #SVB are reminders to business owners to de-risk their business now.

Mitigation reduces the severity of an unforeseen event.

· Take proactive measures to reduce the impact of a disaster:

o Reducing dependence on single suppliers

o Increase customer diversity by industry and revenue percentages

· Develop and Implement risk management plans

Preparedness develops and implements plans to respond to disasters.

· Communication and training ensure you aren’t the bottleneck and will ensure your business responds quickly to customer and internal business needs.

· Consider multiple changes that could create cash flow disruptions. How will your company respond?

Response allows you to act when disaster strikes.

· Implement financial contingency plans

· Secure alternative funding

· Communicate with stakeholders.

Recovery helps restore financial stability.

· Implement financial recovery plans that reduce debt, increase sales, and find new revenue streams

· Invest in new opportunities that were not visible before the disaster

De-risking your business and investments is part of #exitplanning.

Don’t wait until disaster strikes to “check the batteries in your flashlight.”

Manage things on your terms.

We have been through several market cycles and know how to maximize the value of your business or commercial real estate investment.

Give us a call today and start your path to success with your business, personal, and financial goals.

I write seven days a week to help business owners and real estate investors:

✅ Accelerate value,

✅ Become better leaders,

✅ Access capital

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