Small Business Resilience

Small Business Resilience

Being resilient as a person is important, but what about your business, what support does it have? Many small business owners I talk to don’t really think about this. They think it only applies to large corporations or those businesses that carry some form of specific risk such as working with chemicals.

This is very far from the truth and taking simple steps can protect you from potentially losing your business and income. I know it can look like difficult and time consuming work that needs expertise but it doesn’t have to be. For small businesses most of it is common sense.

How to Reduce Risk in Business

At the highest national level His Majesty’s Government maintains a National Risk Register which is a list of things that can hurt the country, as well as the plans and preparations made to prevent or limit the impact.

As a small business you can take just a few steps which can help stop potential threats from putting you out of business. The key here is that whatever you do you must make those steps appropriate to your business. There are different options that you can take depending on the size or type of business.

➡️ Manage a risk yourself

➡️ Insure against the risk

➡️ Pass the risk on to someone else.

For example if you need to drive for business; the law says that you must have the appropriate licence for your vehicle, that it must have a current MOT, be taxed and insured for the purpose. By doing this you are protecting your business in the event of an incident; which would be serious in the case of serious injury.

We often assume that it will never happen to us and that our business will survive because we are insured. Of course insurance is essential but it can take a long time before any payment is forthcoming; as much as two years in some cases which is a long time to wait. Could you survive that long and would your customers and suppliers stay loyal?

Passing the risk to someone else can be as simple as asking anyone who does work for you, under your name or associated with it, if they have these things covered. Don’t take their word for it though - get documented evidence. The reputational damage of being associated with someone who lets you down badly can be devastating.

Start by writing a list of things that could impact your business and ask yourself

1️⃣ What will the impact be if it happened?

2️⃣ How likely is it going to happen?

3️⃣ What would you need to do if it did happen?

4️⃣ How will you keep track of it?

Top Risks for Small Businesses

🚨Driving for business. (You and others and any vehicles used).

🚨Fire

🚨Theft.

🚨Climate impact: Flood, High Winds, Heat, Drought. (These may be indirect impacts that bring loss of electrical power or other services).

🚨Absence from work. (Illness for example).

🚨Health, Safety & Welfare Regulation. (If you employ anyone then you are responsible).

🚨HR Regulation (As above).

Depending on what your business does the list will include other things and the key is to make sure that whatever you do to manage the risks that it is appropriate to your business and that you have a record of it all. If it isn’t recorded then you can’t provide proof if the time ever comes to need it.

It is not worth taking the risk.

Here are some government statistics that represent those events that actually get reported in the UK based on a 12 month period: (so are minimum numbers)

🚨Road Accidents - 1,607 road deaths, 29,540 killed or seriously injured, 128,920 casualties of all severities

🚨Approximately 22,000 workplace related fires per annum. (423 a week!). Most common cause is an electrical issue.

🚨26% of businesses in England and Wales experience theft per annum.

🚨Flooding is more likely than getting burgled, the UK is now 10% wetter and 6% windier than it was between 1961 and 1990. One in six homes face flood risk.

Building a Culture of Resilience

Resilience isn’t just about managing risks; it’s also about building the capacity to adapt and recover quickly when the unexpected happens. This starts with mindset. When you see challenges as opportunities to learn and improve rather than threats, you empower yourself and your team to respond calmly and creatively.

Simple steps can make a big difference:

🔷Keep your plans live, not filed away. Review your risk list regularly and update it as your business grows or changes.

🔷Empower your people. If you have a team, make sure everyone knows what to do if something goes wrong — whether it’s a power cut, a data issue, or an accident.

🔷Build strong relationships. Reliable suppliers, supportive customers, and a good professional network can all help you recover faster after disruption.

🔷Keep your finances flexible. Maintaining a cash buffer, reviewing credit terms, and tracking cash flow monthly can prevent short-term shocks from becoming crises.

Business resilience isn’t about being indestructible ; it’s about being prepared, adaptable, and resourceful.

Every business faces risks; from small disruptions to major crises; but resilient businesses survive because they plan ahead and take action before problems hit. The key is to make resilience part of everyday business thinking, not a one-off exercise.

By identifying your most likely risks, putting proportionate measures in place, and recording what you do, you’ll give yourself the best chance of protecting your livelihood and your reputation.

Resilience doesn’t come from luck; it comes from leadership, planning, and learning from experience. Taking small, sensible steps today could be the difference between bouncing back or not when the unexpected happens.

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