Business

10 Examples of Business Crises and How to Overcome Them

In this article, we delve into ten unique experiences shared by CEOs and founders on how they navigated their businesses through crises. From adjusting products and strategies regarding the pandemic to recovering from a Google algorithm update, these leaders share their stories of resilience and adaptation in the face of unexpected events.

Adjusting Internal Strategies and Product Post-Pandemic
Adapting to Cryptocurrency Taxation Guidance
Navigating Global Supply-Chain Disruption
Overcoming the Loss of a Key Employee
Scaling Up Amid Pandemic Demand Surge
Responding to a Major Cybersecurity Breach
Investing in Digital Marketing Post-Pandemic
Pivoting After Significant Asset Withdrawal
Turning Tragedy into Action Against Domestic Violence
Recovering from a Google Algorithm Update

Adjusting Internal Strategies and Product Post-Pandemic

The pandemic affected us on a few fronts because, as we internally adjusted our strategies and team to the constant change, we also had to adapt our product as a background-checking company. What our clients needed from us was shifting just as quickly as what we needed.

With so many workforces moving remotely for the very first time, we worked to adjust our products and created content to educate our clients, other businesses, on how they could maintain compliance, fairness, and quality while hiring. It’s been an interesting shift and will continue to be as we usher in a more remote-friendly new normal.

Fortunately, we have the tools to help our clients succeed and we’re continually monitoring how the need for our products continues to change.

Max Wesman, Chief Operating Officer, GoodHire

Adapting to Cryptocurrency Taxation Guidance

In 2019, our business at CoinLedger faced a significant challenge when the US Internal Revenue Service issued more detailed cryptocurrency taxation guidance. For us, as a crypto-tax compliance platform, this sudden change meant more consultations with tax experts, and a necessity to rethink our tool’s design and integrations to adhere to the new regulations.

On the surface, it appeared as a hurdle. But we saw it as an opportunity to make CoinLedger even better. We swiftly adapted to the changes, improving our platform to ensure full compliance with the new rules. This response not only kept us in line with regulations but also provided our users with a more comprehensive tool.

David Kemmerer, Co-Founder and CEO, CoinLedger

Navigating Global Supply-Chain Disruption

One significant time when a crisis impacted my business was during a global supply-chain disruption. Our major supplier faced unexpected production issues, leading to a shortage of essential materials for our products.

To respond swiftly, we immediately communicated with customers about potential delays and set realistic expectations. We also explored alternative suppliers and adjusted our production processes to minimize the impact on delivery timelines. Additionally, we launched a proactive communication campaign on social media and our website, assuring customers of our commitment to resolving the situation.

Transparent and open communication, along with adaptability, played a crucial role in mitigating the effects of the crisis and maintaining trust with our customers.

Brian Clark, Founder, United Medical Education

Overcoming the Loss of a Key Employee

About three years ago, one of our key employees quit abruptly to start a competing business. The loss of this key employee was devastating enough (he was literally our third employee), but the fact that he also started a rival business compounded the problem.

This person knew all our vendors, customers, business processes, confidential information, everything. It was a truly cataclysmic event in my mind. But the nice thing was that out of that crucible, I discovered a new capacity in myself to lead. Despite the turbulence, I somehow maintained a level of calm and inspired a couple of younger employees to really step up. I didn’t frame the situation as life or death, or fall into a frenzy.

Funny enough, I was actually calmer and more relaxed than I normally am. I think weathering the storm in a strong, steady fashion really helped to inspire the rest of the team to stay focused and step up.

John Ross, CEO, Test Prep Insight

Scaling Up Amid Pandemic Demand Surge

When the pandemic started in the United States, all of my writing clients suddenly needed to update communications. New clients flooded my inbox. I had to work double-time to keep up with demand. The revenue increase was nice, but I found myself having to homeschool two children while also trying to work full time.

To accommodate these changes, I built a team of trusted freelance writers to help me handle my client overflow. This allowed my writers to continue working during the pandemic when other revenue streams had dried up, plus it allowed me to scale my own revenue without working day and night.

Alli Hill, Founder and Director, Fleurish Freelance

Responding to a Major Cybersecurity Breach

A few years ago, we faced a major cybersecurity breach that threatened our client data. Recognizing the gravity of the situation, we immediately assembled a crisis-response team. We prioritized transparent communication, informing our clients about the breach and the steps we were taking.

Simultaneously, we engaged cybersecurity experts to address the vulnerability and restore our systems. Post-crisis, we invested heavily in bolstering our security infrastructure and conducted regular training for our staff. This experience reinforced the importance of preparedness and proactive measures in business.

Khurram Mir, Founder and Chief Marketing Officer, Kualitatem Inc.

Investing in Digital Marketing Post-Pandemic

COVID created a massive demand for remodeling contractors. We couldn’t keep up. Once everything slowly opened back up, it seemed like the entire world had remodeled and sold their homes.

Of course, there was a huge decline in demand. We had to tell employees to stay home when we didn’t have enough work scheduled, and action had to be taken. Instead of tightening our belts and weathering the slowdown, the decision was made to invest in our SEO and other digital marketing. Turns out, everyone who moved here during COVID wanted to make changes to their new homes. We just needed to make ourselves easier to find digitally.

Rick Berres, Owner, Honey-Doers

Pivoting After Significant Asset Withdrawal

Following FTX’s exit, 40% of AUM was withdrawn on our platform, ultimately closing Midas. Remaining assets, including Midas tokens, were allocated as refunds to be transferred to Locus Finance.

For six months before Midas’ closure, we formulated the Locus model, dubbed CeDeFi Strategies. Despite challenges like our past and financial losses, launching this asset management protocol was initially viewed as a response to guilt and shame from Midas.

However, as the product was built, a new team formed, and strategy development and protocol collaboration were immersed in, a true passion emerged. The ultimate goal is to onboard retail investors into DeFi, granting global access to nascent yet transformative technology.

Embracing this innovation and nurturing it for users’ long-term prosperity is a driving force. With polished products, an insurance fund, and resilience against DeFi’s long-term risks, the vision propels Locus to potentially become a premier asset management platform.

Chris Were, CEO, Verida

Turning Tragedy into Action Against Domestic Violence

One of our business’s most heart-wrenching and defining moments was the tragic loss of Jenni Robertson, a dear co-worker, and her son, to domestic violence. Jenni was more than just an employee; she was a beacon of inspiration, a mother, and a cherished friend to all of us at Voltage Control.

Faced with such profound grief and shock, we felt an urgent need to turn our sorrow into actionable change. We resolved no one should ever have to endure what Jenni and her son went through. In honor of Jenni’s memory, and with a renewed purpose, we forged a partnership with SAFE of Austin. Our collaboration wasn’t just about corporate social responsibility; it was a deeply personal mission.

In facing this crisis, while we deeply mourned, we also discovered a powerful, overarching purpose. We are committed, now more than ever, to ensure that Jenni’s legacy propels forward a movement to create a world free from the horrors of family violence.

Douglas Ferguson, President, Voltage Control

Recovering from a Google Algorithm Update

Last year, my website got hit hard with a Google algorithm update, and I lost 92% of my traffic. This was a crisis that I hadn’t expected, and it had a significant impact on my business. I spent several months trying to recover the lost traffic, working diligently to understand the underlying issues and make necessary adjustments.

However, as the months wore on, I realized I was, metaphorically, beating a dead horse. My website was not what I truly wanted to blog about. This crisis, as painful as it was, opened my eyes to the opportunity to align my work with my passion. I made the bold decision to start a new website in a niche that resonated more with my interests.

By embracing the change, rather than fighting it, I’ve been able to find joy in my work again and see consistent growth.

Juliet Dreamhunter, Founder, Juliety

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10 Examples of Business Crises and How to Overcome Them