Running a business means constantly having to deal with various challenges. It is one problem after another. Most are minor and easy to deal with. Some are harder to tackle and potentially damaging. A few are able to threaten the existence of a business. Only the prepared are able to move quickly in the face of challenging situations. They can recognize threats and mitigate the impact. They can also recover faster and come out of the experience even better than before. Many are now preparing for the following triggers of business disruption knowing that they can occur at any moment:
Global Health Crisis
The COVID-19 pandemic has forced people into their homes and kept countless businesses closed for extended periods. Millions lost their jobs and exhausted their savings. Companies had to deal with supply chain disruptions, labor shortages, and government restrictions. Although vaccines are becoming available to boost immunity, the emergence of more infectious variants is slowing down the return to normalcy. Offices had to implement remote work, some indefinitely. Restaurants, hotels, and other hospitality-oriented businesses also had to innovate.
Climate Crisis
Global warming has been gradually changing the world’s climate for decades. Extreme weather events are now more common. Places that used to cold now experience massive wildfires while regions that rarely saw floods now see raging waters destroy homes. Ice caps continue to melt at an alarming rate. All of these have spurred governments to act and they, in turn, are putting the heat on businesses. Higher energy efficiency standards, stricter ecological measures, and other regulations will force companies to adapt fast.
Technological Shifts
Technology moves at an incredible pace thanks to increased competition and innovations. New products and services come out to solve perennial problems. Others cause business disruption by making older technologies obsolete. For example, streaming services virtually destroyed the CD and DVD market. Most people prefer the immediacy and convenience of on-demand online content. This has gotten more popular with increasing reliability and connection speeds. Film cameras are also rare these days with digital cameras taking over. Now solar panels and other green energy solutions are threatening fossil fuels. The sales of electric cars are increasing as well.
Economic Downturns
Economic downturns affect the ability of individuals to make purchases. Of course, this also affect the ability of businesses to source raw materials or products from other businesses. This can last for years or even decades depending on the depth of the problem and the ability of governments to intervene. Businesses cannot always afford to wait on the powers-that-be to move. They have to be ready to save themselves.