Post-Traumatic Stress Disorder (PTSD) is a mental health condition that arises after experiencing a deeply distressing event. While it may not be as extreme as surviving a war zone, the events of 2020 may leave you with similar emotional responses.
For many business owners, the year started off as expected—until everything suddenly changed.
Out of nowhere, a global health crisis took hold. Major events were canceled, and businesses around the world were forced to shut down.
This left a major impact on your business unless you provided essential services. You may have managed to stabilize, or you might still be struggling to recover. Regardless, it’s likely that this experience has altered you in some way.
As things slowly begin to return to normal, you may notice changes in your perspective. According to mental health experts, PTSD symptoms include:
- Intrusive memories: Recurring, unwanted thoughts about the event
- Avoidance: A tendency to push the trauma out of your mind
- Negative changes in thinking and mood: Destructive thoughts about yourself or others
- Changes in physical and emotional reactions: Increased fear, overwhelming guilt, or a reliance on unhealthy coping mechanisms
Do any of these resonate with you?
If so, you might be feeling the psychological effects of a major event. However, there are three proactive steps you can take to address it:
Option #1: Speak with Someone
Just as those facing PTSD may seek counseling, talking with a business advisor or therapist about how the crisis has affected your company can be very helpful. Speaking openly about your struggles can be a therapeutic first step.
Option #2: Build a More Resilient Business
Another effective response to this challenging time is to focus on rebuilding your business in a way that makes it more robust and capable of handling future disruptions.
Option #3: Consider Selling
For some business owners, particularly those who have lived through previous economic downturns, the recent crisis may have been so impactful that they feel unprepared to face another disaster. As a result, they might consider proactively planning an exit from their business.
Whether you decide to focus on rebuilding or selling, your immediate plan should involve making your business more resilient and potentially more attractive to buyers. Here are six key actions to help you achieve that:
- Emphasize your unique offerings: Focus on the products and services that give you a competitive edge. This will help you command better pricing, improve cash flow, and increase the attractiveness of your business for potential acquirers.
- Establish recurring revenue streams: Develop business models that generate revenue automatically, such as through service contracts, subscriptions, or maintenance plans. Aim for the majority of your income to be recurring.
- Diversify risks: Avoid relying too heavily on a single customer or supplier. Spreading out your dependencies reduces risk and strengthens your business.
- Systematize your operations: Create standard procedures and an employee handbook to minimize reliance on specific individuals, including yourself.
- Organize your financials: Ensure your bookkeeping is in order, which will make your business more appealing to investors or potential buyers.
- Generate upfront cash: Work to secure payments from customers in advance to maintain healthy cash flow.
For many owners, their business is an integral part of their identity. When that is threatened, it’s normal to feel a sense of trauma. However, by redirecting that energy into making your business more resilient, you can better protect yourself from similar challenges in the future.
Leave a Reply