Courtesy of Black Enterprise
It’s no secret the best time to overcome a financial crisis is before there is one. It’s also no secret that financial crises can be sparked by any number of reasons including recessions, terrorist attacks, overvalued assets, stock market activity, poor debt management, or regulatory failures.
Some are foreseen, others cannot be predicted. Regardless of the underlying cause, having a reliable sense of your future cash flow and a strategic plan in place can provide the tools to manage or avoid any potential problems.
Karl Hardesty, CEO of Hardesty LLC, a national executive services firm, realizes overcoming a financial crisis has its challenges, but it doesn’t have to be cause for panic. He offers the following steps any organization should implement to prevent or overcome a crisis.
1. Establish a communications plan. Every organization has a chain of command, but in a crisis, the rules change. Assign a spokesperson to speak with media calling with sensitive questions. Make certain someone is ready to speak for the management team when investors come knocking, and someone is responsible for contacting customers and vendors. Knowing who will carry approved messages to key audiences before a crisis occurs may make the difference between satisfied investors who are well informed of your cash management or disgruntled