How SME’s Can Weather Change in Business

Change is constant and inevitable. From stock market fluctuations to weather and climate emergencies, health crises, regime changes, and employee turnover, our clients are constantly reacting to change. In fact, “business” is about preparing for, adjusting to, and managing change.

If you are in an industry that benefits from a pandemic, war, natural disaster or other change, take full advantage of the increased revenue and set some aside for when the distressed market levels off. However, if you are not in a sector that benefits from distress, find ways to manage change or to distress-proof your business.

In times of change, clients sometimes panic. They table deals, delay payments, layoff staff, or the like. If we are not careful, client panic can cause us providers to behave rashly as well.

Rather than leave ourselves vulnerable to client whims, it is incumbent upon us to proactively make ourselves essential to our client base so when change occurs, we’re not the expense that gets cut or the contract that is put on hold or renegotiated.

Be prepared to be the voice of calm if your client is panicking. This calm must be maintained even if you stand to lose the client or part of your fee. Help your client think through the issues that are causing them distress. Remember, a trusted advisor is an essential. Unless they are heading toward insolvency, businesses don’t tent to cut essentials.

Of course, the best way to weather change is to not wait until catastrophe strikes. Start making yourself essential to your client base today. If you’ve historically been the kind of provider that does good work, gets paid and sends a holiday card in December, that is not a trusted advisor. Whether you realize it or not, you’re already on the chopping block when the going gets tough for your client.

The time to weather-proof your business by becoming a trusted advisor is now. Peruse your client list. How many of those buyers call you to get your take on issues that you’re not yet engaged to handle? If there is a single buyer on the list who doesn’t seek out your opinion, that’s a relationship you should work on this year.