Any tangible challenge that doesn’t have a readymade or an easy solution can be treated as a real life crisis. There are numerous problems in the life of every business entity. There are short term challenges, long term problems and there are the shocks from time to time which one cannot foresee or predict.

Whenever a problem has more than one solution, it is a rather simple scenario. When there is an obvious solution or a possibility of fixing the issue, that doesn’t qualify as a crisis either.

It is only those problems that apparently don’t have a solution which are eligible to be classified as real life crisis.

It is not possible to predict all types of real life crisis but you cannot be completely ill prepared to begin with. You must factor in the possibility of unlikely developments or untoward fallouts. Being aware of consequences beyond the ordinary comprehension will help you to tackle real life crisis. Every company should have crisis management plans.

There are two ways to effectively deal with real life crisis. The lessons learned by innumerable entrepreneurs have been classified into two concepts by business schools: contingency plans and redundancy. Let us begin with the latter.

  • Take a scenario wherein you are hosting an event and you have fifty additional guests at the venue. You did not factor them in, you had no plans or anticipations that they would turn up and it may even be so that some people brought in additional guests. You cannot really discard such possibilities at business events. You need to have redundancy strategies in place. From having additional seating capacity to keeping backup provisions to provide food and drinks for more people, there are simple traditional approaches to be better prepared. With lack of facilities or no provisions to account for the extra people, you can easily have a crisis that would be beyond remedying. In effect, your entire event can be a failure despite all your best intentions and efforts.
  • Contingency is really effective in averting crises. Real life crisis often stems from the reality that people discard the possibility of uncertain or untoward developments. Even those who factor in negative outcomes don’t really account for unbelievable or unprecedented outcomes. You must prepare for everything. Let us imagine a positive real life crisis. Say you have organized an event and that has gone viral leading to humongous traffic to your website. Unless you have adequate servers and enough bandwidth, your site will crash. You need to have a webhost who would be able to scale up your plan in no time. That’s a contingent plan.

 

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