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Smaller businesses often get little warning of any difficulties. It is down to the Business Owner/Manager to react quickly on his/her own initiative to overcome these business setbacks.

This is as important for ensuring business health as are the actual forward plans. Any unwanted obstructions must be set aside quickly. Recognise that crisis management is a continuous learning and improvement exercise!

Two examples of business setbacks

Example 1: What happens if your lawyer or accountant gets wound up?

Most people have never heard of lawyers or accountants ‘going bust’, and that is because the Authorities will not let it happen. Client interests must be protected. But…restoring stability can take up valuable time and any delay is costly, especially if your business is in the midst of complex negotiations regarding its future development.

It is important to act fast. Everyone knows that if a supplier goes down, you must do all possible to get your goods back before the shutters come down; if a customer goes down, you must pull out all the stops to get all outstanding invoices paid before closure. So, your relationship with suppliers and customers needs to be strong so that you get to hear of things first.

In the case of professional services, the situation is trickier to detect, if only because no one is prepared for something they have seldom heard about. ‘Lawyers and Accountants don’t go bust, do they?’

The most difficult thing is discovering what has happened before your records are passed over to some Regulatory Authority, requiring you to go through the rigmarole (which can take weeks) to get them back. If you find out soon enough, you must act immediately. In the case of professional services, you must visit their premises to physically collect the paperwork.

In some cases, e.g. a lawyer holding reserves on your account, you must try to secure repayment during your visit. Otherwise you will have to wait weeks to claim your OWN money back from the Regulatory Authorities, who of course don’t know you from Adam!

Speedy action is vital to secure your own interests and minimise the impact on your business so that your business plans are only slightly disrupted. You must do everything to get ahead of other claimants, who may not act as fast as you do. Suppliers, customers, professional services – if they go wrong, you must act selfish to keep your business intact and going forward without hindrance.

Example 2: What happens if you have a grievance with a large company?

Sooner or later, one of your larger company contacts may deal you a rough hand, say by overcharging you, or mishandling a key transaction. Such developments can be highly detrimental and it is sometimes hard to get the perpetrator to admit their fault, since they will often try to hide behind procedures ‘which you should have been aware of’. You end up being shortchanged through no fault of your own.

So, you have a grievance with a faceless monolithic organisation. What can you do about it? Allowing for the fact that all situations are different, here are just a few simple ‘Do’s’ and ‘Don’ts’

1. Don’t lose your temper

When you first raise your grievance, it will often be with someone who does not know you or is too junior to put things right. If you ‘lose it’, you will raise a defensive screen immediately and your task will be much harder and distracting. You must get juniors to understand your predicament and proffer some support.

2. Be prepared

Make sure that your grievance is well documented and supported with recorded evidence, including (if possible) a summary of any emails or telephone messages. Use that grievance file in all contacts with the Organisation, right from the start. Try to get your first contact to understand the difficulties you are facing and request that your grievance is raised with a senior manager (in the first instance).

3. The formal complaint

If you feel you are getting nowhere, don’t give up. If you have documented your grievance carefully, this would be the time to file a formal complaint. This triggers a number of internal procedures which an Organisation is obliged to follow. It also sends nervous shivers up the spine of any large corporate, because no one wants to risk a time-consuming and costly internal investigation. This may be enough to get your problem resolved perhaps with some compensation for inconvenience. (If not offered, then always ask for it!).

4. The power of ‘escalation’

The key word that can trigger a formal complaint and a load of unwelcome but obligatory procedures is ‘escalate’. Somehow, larger Organisations dread hearing this word, because it suggests that the complainant is serious, well-prepared and documented, ready to challenge authority. Many SMEs are either unaware of this, or are unwilling to make the effort, because they have other things to do. But remember that the effort invested by a smaller complainant is far outweighed by the burden imposed on the larger Organisation in responding according to laid down procedures.

5. The threat of the ombudsman or the trade association

The ultimate escalatory threat occurs when the organisation has conducted its own investigations and declined to act. In that case, the SME can refer a grievance to the relevant Trade Ombudsman. Also, the relevant Trade Association may be able to exercise an influence; no senior member of such an association wishes to tarnish his reputation amongst his peer group!

6. You’re in it to win it!

If the business owner is passionately dedicated to his cause, he will be well placed to turn a potentially damaging grievance to his own advantage. And the SME community is full of passionate players who just need to feel confident of their standing alongside their more senior compatriots and demonstrate that they will stand their ground with just cause. Despite all the fears and threats that may come their way, the ultimate prize of victory is the ability to sustain the business development plan in adversity and win respect for so doing.

7. You’re on your own!

As an SME business owner or CEO, times like this make you realise how lonely your position is. You must show leadership and courage in handling these tricky situations. If you follow the simple guidelines outlined above, you will win respect and momentum internally and externally, thus underpinning your prospects for long-term success.

And you’re not as isolated as you may think. There are many who have experienced such challenges and who will happily share their knowledge.

If you are experiencing similar challenges or any other business setbacks and you would like to explore pathways to success, CMC are here to offer advice and guidance to help you navigate the obstacles. Get in touch today to see how we can help.