3 Critical Questions to Bulletproof Your Business Against Unexpected Shocks
We were drowning in work for our top client, a cargo company from Dubai with a fleet of Boeing 747s.
They were the big fish in our little pond, and we were barely keeping up. Then, out of the blue, they vanished. No calls, no emails. Like a ghost ship, they disappeared into the mist of the business sea.
We had tons of work in process for them.
It was like sitting down to watch the season finale of your favorite show, popcorn in hand, and suddenly, the screen goes black. The cable's out. That's what losing our top client felt like (okay, not quite) — a lesson in 'don't put all your popcorn in one bowl' or, you know, clients in one basket.
The reason they vanished was because they were transporting illegal United States Dollars to Pakistan on their cargo aircraft. They got shut down without warning.
So, let's dive into how you can bulletproof your business against these kinds of shocks by asking yourself three fundamental questions.
Question 1: What is our biggest employee (strategic depth) threat/s?
Your team is your frontline, your army in the trenches of the business battlefield.
But often, just like a critical client vanishes, many businesses rely on a few key employees. Suppose someone has to leave the company due to an illness, a life change, or any other unexpected reason; everything the team has worked hard to achieve can be lost.
The talent and potential leave with the one person the company needed the most.
Ask yourself, "What is our biggest employee threat?"
Write a few ideas down, and then schedule an in-depth think session to resolve this constraint.
Remember, a chain is only as strong as its weakest link.
Question 2: What is our biggest customer saturation threat?
Then, there's customer dependence.
It's like eating the same meal every day. Sure, it's delicious, but what if it suddenly disappears from the menu? You're left scrambling to find a replacement. But the difference is finding another meal is much easier than finding a top client.
Ask yourself, what's one customer that takes up more than 20% of your revenue?
Then, again, conduct a sweet spot analysis.
Identify ways to reduce this risk — you have to find, convert, grow, and retain more clients.
Here are some thoughts:
Do you know your ideal target client?
Do you have a sales playbook?
Do you have a business development plan?
Do you know how to create value for your ideal client?
If you're not creating value for your ultimate end-user, then it's just a matter of time that your client base will churn.
Question 3: Are there any global or geopolitical issues that could topple our progress?
We live in a world where a tweet (Xing? WTF is it called?) can cause a market crash.
A pandemic that can shut down globally interconnected supply chains. An election that can ravish regional stability.
Keeping a pulse on global trends that could impact your business is crucial.
For my business in commercial aircraft maintenance, I have to watch regional trends where our global clients operate, innovations such as cargo rocket ships replacing traditional cargo aircraft within the next decade, or wars that stop aircraft operations.
You, too, have many things you need to stay on top of so you constantly stay one step ahead of the competition.
Develop a flexible strategy to adapt to these changes.
Like a skilled surfer, you need to ride the waves, not get wiped out by them.
Preparing for unexpected shocks in business is not just about safeguarding; it's about being intelligent and adaptable.
So, what's next?
Take a hard look at your business. Are you too dependent on one client? Is your team ready for an unexpected employee loss? How's your global trend radar looking?
Start by asking these critical questions and begin the journey to a more resilient, shock-proof business.
