Build a resilient business

By Dr Norah Clarke - Dr Clarke is the Director of Entrepreneurship at Universities South Africa (USAf), and a resilience expert.

Have you noticed that the word “resilient” has become quite popular in the past two years? This makes sense, given that the pandemic tested the resilience of individuals and businesses in uncommon ways. But how should we understand the word “resilience”, especially as it relates to our entrepreneurial ventures?

On a personal and psychological level, resilience can be considered the ability to endure, recover and – the often forgotten third characteristic – grow through trauma and hardship. Given that the entrepreneurial path is usually fraught with challenges and hardship, resilience is an important characteristic of the entrepreneur who manages to establish and grow a sustainable and resilient business venture.

Much like a resilient person, a resilient business/startup is one that can endure in the midst of external changes and challenges, that can recover from setbacks and losses, and that can grow and thrive against the odds. You need your business to be resilient to improve its sustainability, especially because you operate in a VUCA environment – Volatile, Uncertain, Complex and Ambiguous.

Our list of tips for building a resilient business starts therefore with the resilient entrepreneur.

1. Become a resilient entrepreneur

Much has been researched about developing one’s own resilience, but a key requirement is the ability to establish and maintain a strong social support structure. This is, of course, common in traditional and rural lifestyles, but it could be challenging in the urban and university environment. A thoughtful strategy and effort might be needed to grow a strong personal and professional network in this case. And do remember to manage your family’s (financial) expectations of you and your entrepreneurial venture.

2. Educate the founder – yes, you!

A resilient founder knows to remain informed and knowledgeable. Invest in your own development and become a lifelong learner. Yes, you’re a student with coursework, but add to that selectively and strategically by utilising the many free resources available through the university and online. Specifically, learn about the practicalities of running a business and working with money.

3. Understand your ecosystem

A key area of learning that deserves special mention, is your understanding of the ecosystem within which you do business. Your business is closely connected to a dynamic environment that changes continually. This includes your customer base or clientele, your supply base and the social systems upon which your business depends. Global events such as the war in Ukraine might, for example, not initially seem relevant to your small business, but the subsequent fuel price hike might very well have a significant impact on your operations. Listen, observe and adapt.

4. Be agile and adaptable

Talking of adaptability, this is a key characteristic of both the resilient entrepreneur and the resilient business. The word “pivot” has become synonymous with the startup environment in recent years, given the need to accept the complexities and uncertainties associated with doing business. Accept and adapt – swiftly. Consider the challenges your business is faced with and look for the veiled opportunities that might accompany those challenges. How can you reframe the negative into a positive for your business?

5. Have a Plan B. And a Plan C

Challenges to our business ventures confront us with our own expectations, some of which turn out to have been unrealistic. There’s the plan and there’s reality. The two are never identical. Go all out to make the plan work, but expect that there will be curveballs. Identify potential risks. Take time to think through possible scenarios that you might anticipate, along with some relevant responses. If it turns out that your course of action wasn’t the best, stop. Regroup. Rethink. Ask for advice from experienced persons, then proceed with the new plan.

6. Play a long game

Forget about instant gratification. To succeed as an entrepreneur, you should be willing to sacrifice on a personal level – think time, luxuries, friends – and on a business level. Start small, perhaps with a side-hustle that can grow into a full-time business. Live within your means. Stay humble. Plan well and manage your personal and business cash flow carefully. In business, you sometimes need to trade-off present efficiency or operation in the interest of sustainable performance in the future.

7. Prioritise relationships

Most importantly, both the resilience of the entrepreneur and of the business depend on the nature and quality of their relationships. As much as the entrepreneur needs a trusted support network, the business needs healthy relationships with customers/ clients, suppliers, partners, and especially employees. Your business is only as strong as your team, so you as the leader need to protect those relationships. Lead with empathy and mindfulness. Recognise and reward special efforts. Make time to celebrate. Finally, apologise sincerely when you have inadvertently caused harm. Building strong relationships is a process that takes time.

8. Be kind to yourself

Sometimes you’ll get it wrong. Sometimes you’ll feel isolated. Often you’ll think of giving up. Be kind to yourself and try again tomorrow.