In 2005, a powerful and surprising hurricane stuck us in South Florida. Power was out, roads were blocked, and employees were displaced. Responsible for the operations of a contact lens distribution company, I thought we had an adequate business continuity plan, but after an unthinkable ten days without power, that plan was tossed aside. We had built our plan around “reasonable” risks. This hurricane was anything but “reasonable”.
Today, you and I have stepped into the next unthinkable disaster. Business continuity plans built on “reasonable” assumptions have once again been tossed aside as irrelevant. If business continuity plans aren’t working, how can you plan for the next unthinkable disaster?
Maybe it’s not about the perfect business continuity plan, maybe it’s about consciously building your company to be disaster resistant.
So what are disaster resistant models? I don’t pretend to have all the answers to this important question, but I can share three business models that companies who successfully weathered Hurricane Wilma in 2005 and are now successfully surviving and even growing during this pandemic have in common.
After reading these, I would urge you to consider how these might apply to your business. Why? Because these models will support you, your business and your employees to remain whole during the next unthinkable disaster. Also, they will contribute to the overall value of your company even in times of calm and prosperity. In short, a true win-win in business.
Ok, here are three business models many companies growing in this pandemic have in common:
- They have an E-commerce Business Not Fulfilled by Amazon
- Their Management and Support Employees Already Regularly Work Virtually
- They Operate in a Regulated Industry
As you might have guessed, E-commerce businesses, those without retail locations, are faring pretty well during this pandemic.
What you might not know is that thousands of E-commerce businesses have been forced out of the market when the ‘Fulfilled by Amazon’ (FBA) program shifted its focus to essential products only. FBA customers, those who let Amazon be their sole fulfillment partner, are scrambling to recover. While businesses that invested in their own warehousing and fulfillment capabilities are still able to meet all of their customer demands. In fact, businesses with fulfillment capabilities are now adding those customers that FBA can’t or won’t service. You having an E-commerce Business Not Fulfilled by Amazon is a critical differentiator for your company in this market.
In the past few weeks, we’ve all been in meetings with Zoom virgins. It’s clearly their first time on video. And when they’ve incorrectly muted themselves, you can hear them mutter they can’t wait until they get back into the office.
It may be hard to believe, but there are management teams out there not missing a beat in their communication. They know how to use chat, the breakout rooms, how to raise their hand… all of the Zoom features that enhance productivity.
They have this level of expertise because they’re practiced in remote video communication. Instead of joining from their kitchen table with a thirty-year-old green refrigerator in the background, they have a place already set up in their home to communicate.
In addition, these virtual management teams have a real time app active during business hours so they can instantaneously communicate with each other. Please consider how your management and support teams will maintain their virtual work skills after the pandemic.
Highly regulated businesses such as pharmaceuticals, medical devices, and alcohol tend to grow and decline in a way that doesn’t match the overall economy. The drivers in these businesses are hard timelines or “essential” life purchases. For instance, pharmaceutical drug discovery is done with an urgency not often seen from outside the business. While a drug is being commercialized, a day delay directly transfers to a day of missed sales in the market. As a result, companies providing services to companies engaged in pharmaceutical discovery and commercialization will seldom see a break in the urgency for any disaster or economic downturn.
This is one example of Operating in a Regulated Industry business model. How could this work for your company?
How is your company disaster resistant? I’m interested in your thoughts and experiences. Would love to hear from you, please comment or share. Wishing you safety and health.