BUILDING RESILIENCE
WHAT DOES RESILIENCE LOOK LIKE IN 2024 ?
Resilience is a word we ’ ve got very much used to over the last few years – it ’ s become a byword for surviving a very turbulent decade in business so far . Some of us ‘ do resilience ’ better than others and we ’ ve all had to dig deep to survive over the past few years . Some of us have , of course , thrived .
Factors which have affected business brutally have included :
• the pandemic and subsequent lockdowns .
• the conflicts in Ukraine and Gaza .
• Brexit and its impacts over the long term .
• the uncertainty caused by political instability both in the UK and overseas .
• the disruption to supply chains most recently caused by the issues in the Red Sea , and ongoing economic sanctions .
This year the impacts of all of the above are likely to continue , coupled with continued political uncertainty , a cost of living crisis , a General Election on the horizon in the UK and the fact that we are in a recession – it remains to be seen if we ’ ve begun to pull out of it .
Then there are stress factors which are unlikely to go away any time soon – dealing with the climate crisis , the need to be more sustainable and the ever-growing threat of cyber crime and cyber attack .
Yet for most businesses the day-to-day work continues and those impacts can trickle down quite slowly – often that can lead to a false sense of security and then overnight a price rise or a cyber attack can scupper well-laid plans even for the smallest of businesses .
We ’ ve spoken to several Wiltshire business owners for their tips on being resilient and they fall into a few broad categories – planning , knowing your numbers , stress testing your IT , strong communication and crisis management strategies and being flexible .
HAVE A WORKING & FLEXIBLE PLAN : Planning is one of those activities in business which often gets done – and then forgotten about . Once a year it might get dusted off and updated yet it ’ s a working plan – understood by all in any team - which can make the difference when a business is under stress .
Being able to plan or strategise with a team quickly when a difficulty arises has huge benefits and it helps in working with key partners .
Emma Skinner , Associate Director at Haines Watts provides us with her opinion :
“ Resilience takes on many forms in the business world . Resilience to me is the ability to adapt to my clients ’ everevolving needs and to be pro-active in providing relevant advice .
“ Businesses built on the right foundations have the best chance of success . It is important to set clear objectives with a plan to achieve them – and don ’ t forget contingency planning in case something goes wrong or in case something goes so ‘ right ’ that you have to move forward far more quickly than you had ever anticipated .”
LOOKING AT THE MONEY : Nicki Kinton , runs Confident Cashflow based in Swindon , and supports SMEs around getting paid and getting paid on time . “ You can create financial resilience by having a good spread of clients and having a clear and consistent process for following up on overdue invoices . Your money won ’ t help you weather any storm if it ’ s in your client ' s bank account .
“ I ’ ve seen businesses fail because one large client entered insolvency and couldn ’ t pay their invoices . They all had a relaxed approach to credit control , not wanting to chase clients for payment for fear of upsetting them and losing future business .
“ The loss of just one client puts an enormous strain on cash flow and it can become an uphill struggle , both for the business and mentally for the owners . Don ’ t let one client be the breaking of your business .”
BE READY FOR CYBER TROUBLE : Unsurprisingly this is something that concerns Andy Cuff , CEO of Computer Network Defence ( CND ), and his team , based in Corsham .
“ In the realm of cyber security , Business Continuity ( BC ) and Disaster Recovery ( DR ) are critical components of resilience . BC ensures the maintenance of essential functions during a disaster , while DR focuses on restoring normalcy after a disaster .
“ They both require a proactive approach . This involves conducting comprehensive risk assessments to identify potential threats , carrying out impact analysis to understand the potential consequences of these threats , and performing regular testing to ensure the effectiveness of strategies in place .
“ Cyber threats are evolving , making it imperative for businesses to have robust strategies . These should encompass data backups , crisis response , and recovery plans , ensuring minimal disruption and swift recovery .
“ In essence , a resilient business is not just about surviving a disaster but thriving amidst challenges . Investing in strong BC and DR strategies is not just a necessity , it ’ s a strategic move that can give a business a competitive edge .”
MONITOR YOUR SUPPLY CHAIN : Many businesses have found that their supply chains have been disrupted beyond recognition over the last few years .
For those who import and export , some routes to market that once seemed ‘ safe ’ have been disrupted and that disruption could continue . Some goods have been in plentiful supply and some in short supply – the latter pushing up costs ( semi conductors being one example ). Only recently there have been stories around a lack of medicines available to treat certain conditions including ADHD and Type 2 Diabetes .
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