Insights From Our Experts
COVID-19 has shined a light on how a global crisis can wreak havoc on a local business.
But it doesn’t take a global pandemic to feel the effect of an event on the other side of the globe.
We live in a world where a global supply chain is the norm, and geopolitical issues can throw a wrench into your business plan even if you don’t have an office on another continent.
Following a magnitude 9 earthquake in 2011, a 50-foot tsunami caused the meltdown of three nuclear reactors in Fukushima, Japan killing 19,000 people and destroying or damaging over a million buildings. This triple disaster was devastating to Japan, and the ripple effects could be felt around the globe.
For example, at that time, my agency was working with a golf shaft manufacturer whose supply chain was disrupted.
This impacted their ability to fill orders to their dealers which led to a decline in sales for both, and less money to spend on marketing and advertising (us).
It wasn’t just the manufacturer whose business was impacted, it was also the dealers, the agency, the advertising outlets, etc. and that was just one company out of thousands.
There was a ripple effect felt on the entire global business ecosystem.
Sometimes it’s politics that get in the way.
I was all set to work with a Russian vodka brand looking to launch its product on the U.S. West Coast. We had done the research, put together a strategy, and laid out an integrated marketing plan, complete with Ukrainian folk dancers ready to bust out the Cossack Hopak in the middle of bustling dance floors.
We were ready, it was going to be our coolest project yet.
Then we got the call.
Tensions between the U.S. and Russia had suddenly worsened. The head office in Russia pulled the plug on all US promotions, and we got the rug pulled out from under us.
Fast forward to the global COVID-19 pandemic of 2020.
It’s hard to make any money when your customers can’t leave the house (unless you’re Amazon).
Even with the PPP and government attempts to stimulate the economy, more than one million small businesses have closed and close to 200,000 people have died (as of this writing) in the US alone and many more won’t make it.
Owning and operating a small business is a daunting task in the best of times, let alone amid multiple disasters.
Don’t forget that much of the country is either battling storms or massive wildfires.
The moral of the story is that there will always be something to affect your business that is out of your control.
Whether it’s a tsunami, a pandemic, or a random dignitary insulting the Sultan of Brunei—you need to be prepared.
No business is an island unto itself anymore.
Businesses need to have a plan in place to keep customers coming in, a sales funnel to ensure continued business, and enough savings stashed away to see you through the hard times.
Most entrepreneurs are passionate about their business, creating what they sell, or providing a service that they love.
It’s everything else about that business they find tedious: financials, HR, insurance, marketing, and that’s where you find other small businesses to give you a boost.
That way your business feeds into their business and on to the next—building back up your business ecosystem that strengthens as it expands, making us all more resilient.
