12 tips on overcoming business crisis

In recent weeks, I’ve read and heard a lot of stories about President Noynoy C. Aquino’s worst crisis — his perceived mishandling of the Mamasapano massacre of 44 SAF policemen. I also recently read about the tragedy of a Taiwanese businessman who died with his entire family after a reported financial crisis. How can we overcome crisis without hiding or just giving up?

Although I do not consider myself a “success expert” yet, I think I could write a book as a “crisis expert” ever since my childhood of experiencing life’s vicissitudes. Whether for leaders of a business or a nation, or an ordinary person with problems, here are some of my suggestions on how to overcome them:

1. Don’t allow emotions to mess up your life. When in crisis, I believe we should learn to psychologically and emotionally adjust by compartmentalizing the crisis, not letting it negatively affect the rest of our life and daily existence.

During crises, a lot of people tend to lose hope and self-control, thus causing the worsening of problems instead of really resolving them. I’ve learned that in life, we shouldn’t allow emotions of extreme grief, excitement or happiness to cloud our sense of objectivity and judgment.

2. Keep a positive mental attitude. From experience, I’ve found this adage is true: “Success is often not permanent and neither is failure permanent.” Let us never feel that the world is ending, that there is no hope. Let us always hope and work for a better tomorrow.

As long as we are still alive, there is still hope. Each crisis that we encounter in life is an opportunity to strengthen us and to teach us valuable lessons; they are not insurmountable obstacles to success.

3. Don’t look for scapegoats or excuses; take responsibility. Although this is the lunar new year of the goat, this is not an excuse to look for scapegoats to blame. Whether or not we are leaders whom people look up, the first step to overcoming and getting on the road to recovery is to be truthful to ourselves and to others. Be accountable. Admit errors and shortcomings; don’t keep blaming others.

4. Maintain good physical health. Many people in trouble tend to neglect their physical health by losing sleep, losing the appetite to eat and just loafing around aimlessly like zombies. Worse, others in crisis make the mistake of going on eating binges, drinking alcohol, taking illegal drugs and other self-destructive vices.

In times of crisis, we should all the more take care of our fragile physical and mental health with good habits like eating healthily, resting and sleeping, and exercising regularly (which produces the feel-good chemical endorphin in our bodies).

5. Surround yourself with positive and supportive people. Even in good times, I believe in choosing good and positive people as friends and colleagues, and not associating with rotten apples who’ll affect us negatively like contagious diseases. In the small businesses that I run, I’m the most allergic to hiring staff who are negative in attitude, who love to complain, because I believe they’ll affect the whole team.

When we are in crisis, all the more avoid bellyaching or negative people like the plague! However, this doesn’t mean a leader should only surround himself with “sipsip” eunuchs and sycophants; they will ensure his doom faster than even the worst foes!

6. List down the changes you need and do them decisively. It has been said before: only a crazy person expects different results without making changes to himself or his behavior. In crisis, analyze what changes are needed and act on them decisively!

7. Don’t take things personally. When things do not go our way or when some people do not cooperate or become selfish, we shouldn’t take things too personally. Whether as an entrepreneur, professional or leader, let us maintain our emotional, intellectual and physical composure in order to address and fix a crisis.

8. Cut losses and let go. I’ve heard a Hokkien or south Fujian dialect phrase from wise old folks called “siaw chay” whenever a misfortune happens to someone, like a fire that burns a factory or a robbery. I think this phrase means we should view a mishap as “a lessening of misfortune” from our lives and be grateful that we’re still okay.

In crisis, whether financial, emotional or even political, this principle is very wise. For example, a businessman tells his banker to just take his mortgaged property in a “dacion en pago” deal so that he can stop the bleeding in interest charges, penalties and litigation costs as well as to clear his record for future businesses. Let us be pragmatic, unemotional and cut our losses so that we can go on to rebuild.

9.  Live simply, take away non-essentials. I believe in this principle of living simply at all times, during good times or bad times. It is not more correct but my personal preference. However, in times of crisis, we should live simply and tighten our belts as part of our recovery efforts financially, emotionally, psychologically and even politically.

10. Pay all your obligations; keep your word. Almost all the top, self-made entrepreneurs I’ve known, interviewed or studied have had their share of problems and setbacks. One trait that distinguishes those who recovered from crisis is that the good entrepreneurs keep their word and safeguard their creditworthiness by endeavoring to steadily pay off all their obligations to creditors and suppliers.

Renegotiate terms or ask for discounts on debts, but pay them all. Be honorable and think long-term. Even for non-businesspeople in other kinds of crisis, always keep your word.

11. Forgive others, but do not forget. First of all, forgive yourself and do not be too harsh on yourself because it is okay to make mistakes. Forgive others because it is human nature and natural — though not right — for them to betray or abandon us when we’re in crisis.

 One way to hasten our recovery process from crisis is to unburden our hearts and our consciousness by forgiving others who have wronged us. I believe hatred and personal grudges, like fears and worries, are so inefficient and irrational emotions that detract from our goal of accomplishing more important things in life.

Forgive but don’t forget, meaning we should be wary of unreliable or dishonest people we encounter or we’ll have to deal with them again!

12.  Don’t forget to pray. I am not religious, but I believe that we should work hard as well as seek divine guidance, strength and wisdom, whether in crisis or not. Maybe we should also be grateful for a crisis, because there are often many unintended good consequences out of crises that happen in life. Pray without ceasing.

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