Crises are an inevitable part of life for startups, as they are for businesses, institutions, and the economy as a whole.

This crisis can be financial, it can be organizational and productive, and of course any institution or startup can suffer from it regardless of the field

In which it operates.

These companies usually need highly skilled people to do many things, as there are not many people and a single person can do

With so many tasks to handle each day, some of them may involve managing crises facing the company.

Of course, teams at these companies need to understand the scale of the problem and respond intelligently. People in these organizations are often not experienced in

dealing with it, and it may even be the first time they have faced a particular crisis. But once they overcome it, they gain significant experience and invaluable lessons.

At the same time, failure in crisis management in these companies can lead to collapse or failure that negatively reflects on the company's ability to compete.

In this article, we’ll discuss five fundamentals that guide crisis management at startups.

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1. Staying calm and keeping emotions and nerves under control

A financial crisis—or a crisis that negatively affects production operations and delivery schedules—is very bad news and can leave a business or company owner feeling

worried and sad, and perhaps even having a panic attack.

The same goes for the employees with him, what is happening may affect their feelings and therefore the whole system in this regard will be negatively affected at the level of productivity and behavior

And making decisions that will not be rational, but rather emotionality will govern a lot of the team's control to make matters worse.

The founder or CEO of the company must be calm and able to manage the problem without causing anxiety to himself and the team.

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2. Investigations to identify the root cause

We’re not dealing with a large company where investigations can take days to determine the cause of a particular problem. We’re dealing with a startup that needs to

The problem is clearly visible and easy to identify.

If the crisis is the result of a delay in delivering orders and shipping them to customers, this means it is from production or those responsible for distribution and delivery, and it must be determined

Is the problem in production mechanisms, transport vehicles and poor distribution, or another reason.

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3. Communicate with everyone

While the crisis is being resolved, all team members should be kept informed. In addition, you should stay in regular contact with affected customers

about the issue and keep them updated.

Communication breaks the deadlock in the company's relations, as it clarifies things for everyone and does not leave an opportunity for rumors and doubts to spread in this sensitive environment.

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4. Prevent further damage

Suppose we have a startup where a breakdown of some production machines caused the cancellation of shipping operations and delayed delivery operations, in this case we must prevent further

From damage.

First, the problem must be fixed on the same day so that more orders are not canceled, including orders for the next day, while also canceling the launch of a new product

Under these circumstances until production operations are fixed.

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5. Learn from the crisis

After you have taken control of things and succeeded with your work team in solving the crisis, you must reconsider things and learn lessons.

For example, a production crisis like the one we’re discussing could prompt you to allocate part of your budget to purchasing backup equipment that can be put to use immediately if the current equipment fails

so production doesn’t stop, and to improve the company’s production environment and keep operations running under all possible circumstances.

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In startups, crisis management should be faster than in large companies. Teams need to act as one—committed and disciplined—without seeing

crises as the end. Instead, they should see them as the true beginning of many of the giants they admire today.