As many people are experiencing the impact of the ongoing pandemic, business owners and corporate leaders are enacting short-term recovery measures to keep business operations afloat. Implementing short-term recovery measures has benefits, but focusing solely on the short term can also keep you from tackling more issues that can carry long-term implications. In this blog, we discuss the pros and cons of short-term business recovery, and how you should always prepare for the long-term effects of disruption so that your business remains viable and successful.
Pros of short-term business recovery
Builds confidence among customers
With a short-term recovery plan, you can build the confidence of your customers by displaying transparency. When you’re open with them and communicate clearly the company’s efforts to ensure that they’re supported amidst a crisis, they can feel reassured that your business is moving in the right direction. Showing accountability and a high level of commitment to business continuity builds trust not only among your customers but also among outside parties that you do business with.
Preserves brand value
Your ability to handle disruptions with immediate action, and recover operations quickly after interruptions display a level of competence to the public. Short-term business recovery plans can generate a smooth recovery, and this only adds to the reputation you’ve worked hard to create.
Ensures compliance with industry standards
Adopting a set of standards for short-term business recovery makes it easier for your business to become compliant with industry mandates and other regulatory requirements. It also shows that you’re running your business responsibly, and ensures that everyone on your team is on the same page.
Helps mitigate your financial risk
With the proper implementation of your recovery plan, your business can continue trading during a crisis. Joining platforms such as Bartercard allows your business to collect outstanding debt, and this that can help reduce financial losses.
Cons of short-term business recovery
Lack of certainty for the future
Though short-term business recovery plans can make coping in a crisis easier and provide temporary relief, they may not be enough to meet the increasing demands of continuous business operations. While short-term plans allow you to survive, you need a long-term plan to avoid becoming unable to adapt to post-crisis changes.
There are no guarantees
Nothing is 100% certain. Even with the best research, best workers, and best short-term recovery plans, there’s always a chance that things will not go your way. Long-term planning can help you prepare better for the unexpected.
Reshaping strategy for long-term business recovery
Focusing on short-term recovery plans runs the risk of creating tunnel-vision. While it’s essential to have a short-term recovery plan when a crisis hits, you should look into creating long-term business continuity plans too.
Whether that means stress-testing financial plans for multiple scenarios, considering alternative supply options, or communicating with relevant stakeholders now instead of later, you need to ensure your business can handle the shift in the economy, and ultimately survive the long-term effects of disruption.
Let Bartercard help you plan for the future! By joining Bartercard, you gain access to thousands of other members in our growing network, who you can barter with using trade dollars. Increase your sales by selling old stock and filling in downtime. Become a member today!