From the outside looking in, businesses often seem stable, capable, agile, and robust. In some cases, they might be. Odds are, the Disney Corporation is going absolutely nowhere soon. That said, the longevity and capabilities of some firms can give us the faulty impression that they’re all like this. While some companies can weather the storm of even very difficult scandals (such as the VW emissions scandal), many can struggle for years because of issues like this.
As a business owner, it’s always important to understand that businesses can be more fragile than you expect. If you sustain that view, then you’ll be more careful about how you manage the enterprise, its priorities, and the future of its development. Now, all of that sounds good, but it’s essential to define the potential problems that could be experienced and just why a business is more fragile than expected, as opposed to simply being aware of an ominous danger and failing to do anything about it.
Never fear, because in this article, we’ll discuss exactly how that fragility can be expressed:
Reputational Damage Can Have An Effect
It’s easy to think that in the world of social media, the misdeeds of yesterday are quickly forgotten. But issues like data breaches, unfulfilled orders, rude staff, or even slightly misleading marketing can cause a real problem for your brand, and inspire others to try and avoid everything you have to offer. A staff code of conduct, regularly reviewing your copywriting and marketing standards, and being proactive about settling customer concerns are all essential measures to get right, and to keep focusing on as your business moves forward.
Claims Can Cripple Companies
Workplace injury claims, harassment lawsuits, and liabilities without the right insurance to support them, all of this can help rock smaller businesses if they haven’t planned against these outcomes with robust internal systems. For example, liability insurance can help pay for medical bills if all of your safety investments haven’t helped. You can also use commercial insurance to protect essential assets like your premises or fleet, depending on the assets you have and the comprehensive coverage of your plan. At the very least, you will have made sure that the fragility of your business is no longer defined by what coverage you’re missing.
The Supply Chain
As we saw during Covid, a supply chain interruption can cause significant fulfillment issues and problems going on. Even brands like Sony had trouble fulfilling their usual flagship product deliverables when silicon chips were no longer available. Thankfully, you can alternate most resources you may use for manufacturing or in order to keep your supply well-calibrated. That might involve curating a range of alternate suppliers, backups, or potential product substitutions you can use in the event of your supply chain temporarily failing you. With contingencies in place, this doesn’t have to damage your own reputation or client base.
With this advice, you’re sure to see how businesses can be more fragile than you had expected. This will only help you better fortify those weak points.
