In the months leading up to summer 2012, the UK conducted one of the most comprehensive crisis preparation exercises in modern history. Multiple, detailed scenarios – from terrorist attacks to data breaches and from transport failures to public disorder – were anticipated and prepared for. With practical simulations for some of these risks involving more than 50,000 people, it was a model in contingency planning.

But at the same time, thousands of athletes were also carrying out their own, much smaller, crisis preparations. They were working out what could go wrong in their chosen event and playing out how they would respond to each to ensure the biggest moment of their sporting careers wasn’t ruined by something outside their control.

It’s no surprise that multi-national organisations devote time to war-gaming nightmare scenarios, but if some of the most elite and responsive individuals in the world are also planning for future crises, then maybe small businesses ought to do the same.

As founders or leaders of small businesses, planning for your worst day is about protecting the organisation you have spent years building up, in many cases from nothing. With non-tangible assets like reputation forming a significant part of your enterprise’s financial value, a reputational crisis can do huge damage in a very short space of time. But they can be opportunities too, as the army of firms that pivoted during the first lockdown of 2020 proved.

Predicting risks🔗

The first step is to know what you could be facing. A comprehensive risk assessment can help you map out your biggest business fears, giving each a score based on how likely it is and how severe the outcome would be.

With any luck, there won’t be any risks that are both highly likely and very severe, but if there are, take steps as soon as you can to either prevent them or, at least, to minimise their impact. For the rest, work through each in order of priority to anticipate how they might play out. Think through what the first warning signs might be, how each could unfold and what the potential impact on your business would be at each stage.

Pay particular attention to any crises that undermine what you have previously said about your business, what it stands for and the values it lives by. A company that says it is open and transparent with customers will be undone if, when a crisis strikes, it pulls up the drawbridge and tries to hide.

As soon as you know what your biggest risks are, start taking steps to equip yourself for that first 15 minutes and the hour or two that follow.

What you will probably want most in that time is the security of a strong reputation. Think of your business’s good name as being like a bank account – the more credit you can build up in advance by saving little and often over a long period of time, the greater your ability to withstand any shocks. Consistent and positive good news build trust and reputation, while a network of allies who might speak up for you in your darkest hour is invaluable.

But if you’re the type of team that like the security of a clearly laid out strategy to guide you, spend time anticipating the key decisions you will need to take and setting out a path through them ahead of time. Either way, ensure your crisis starts with assembling the right team and setting a clear strategic objective of what you want to achieve. Communication protocols and even draft holding statements for different audiences can help you hit the ground running.

When a crisis does occur, you need respond not only quickly but authentically. There’s an old adage that you find out who people really are in a crisis. How your business responds when the chips are down will tell stakeholders far more about its real character than anything else. Respond well and people might even end up thinking more of you as a result. Be transparent in your communications, take responsibility for any mistakes – without writing cheques you cannot cash – and provide clear information about what has happened, why it happened, what steps you are taking to address it and when you will say more.

Training and Exercises🔗

A team with a plan is good, but a team that has rehearsed that plan is even better. At a basic level, this could be a desktop exercise where you work through a scenario, assessing the situation at each stage and deciding your next steps. If you can afford the time and resources, assemble your leadership team and get them to work through a situation together, while another team pushes the situation along in ways you may not have thought of before. These war games will sharpen your decision-making under pressure and they will uncover ways the scenario could develop that you hadn’t previously anticipated.

Finally, as a start-up owner, you may need to be the face of your organisation during a crisis. This will mean having a team in place that can run the crisis response so you can free up time to engage with stakeholders, be they investors, customers, regulators, local or national government or the media. Each group requires specific skills and, just like with rehearsals, training undertaken in advance will keep you match-fit when (not if) the moment comes.

Final Thoughts🔗

Crisis preparation isn't about predicting the future. It's about building organisational resilience. And it can be about opportunity. With the right preparation, a well-prepared business can turn a potential threat into a demonstration of its core values. By all means start small, but start now. Then update your plans as if the crisis is your career-defining gold medal moment. It very well might be.