The question hit Sophie Sweet like a splash of cold water. She had spent years growing her lollipop business, scaling from a modest $1.5 million in sales to pushing towards $10 million. But until now, she had been focused on growth—expanding into new markets, streamlining production, and strengthening her brand.
What she hadn’t considered deeply enough was resilience — how to ensure her business could survive and thrive no matter what challenges came its way.
Covid seemed like a distant memory & she’d being so busy building her lollipop business she hadn’t taken the time to really think about things. Sure she’d done an exercise on enterprise risk, but it just all seemed like she was going through the motions. It will never happen to me she thought. Or could it? Reality suddenly set in.
Could her business withstand supply chain disruptions, shifting market trends, or an economic downturn? The thought unsettled her. Sophie knew she had to build a resilient business model — one that could adapt, change if needed and endure.
Many business owners focus on scaling their operations, but few stop to consider how robust their business is against unexpected challenges. Rapid growth often comes at a cost—over-reliance on key suppliers, stretched finances, and operational inefficiencies that go unnoticed until it’s too late.
Sophie realised that while her company was growing fast, it wasn’t necessarily built to last. A single disruption could throw everything off course.
Determined to fortify Sweet Spot Confectionery, Sophie sat down with her advisory board and senior leadership team. Together, they identified three core areas where resilience was needed: Financial Strength, Operational Agility, and Leadership & Culture.
Sophie knew that cash flow is the lifeblood of any company. Without financial resilience, businesses struggle to survive during economic downturns, supply chain issues, or unexpected costs. She needed a stronger financial foundation to protect against uncertainties.
- Built a financial buffer: Sophie worked with her accountant to ensure they had at least two months’ worth of operating expenses in reserve. She never wanted to be in a position where she couldn’t pay her staff or pay her bills as they fell due.
- Be smarter with stock turns: Sophie knew she had to keep an eye on inventory management by reducing excess stock and improving demand forecasting, ensuring cash wasn’t tied up in slow-moving products. The boxes in the warehouse were in reality boxes of cash she couldn’t access quickly.
- Shifted focus from just revenue to profitability: She analysed product margins to ensure that growth wasn’t just about sales but also about sustainable profits.
- Diversified income streams: Sweet Spot Confectionery expanded into corporate gifting and online direct-to-consumer sales, reducing reliance on traditional retail.
A business that can’t adapt is a business at risk. Sophie realised that to stay competitive, she had to make Sweet Spot Confectionery more flexible and responsive to change.
- Diversified suppliers: Instead of relying on a single supplier for key ingredients, she knew she had to build relationships with multiple vendors. This reduced the risk of production halting if one supplier failed.
- Invested in automation: She decided it was time to look at streamlining packaging and order processing with technology, allowing the business to scale efficiently without excessive labour costs.
- Created contingency plans: Sophie and her leadership team developed “what-if” scenarios, preparing responses to potential challenges like sudden price hikes in raw materials or shifts in customer demand.
A resilient business isn’t just about numbers—it’s about people. Sophie recognised that for her business to thrive under pressure, her team needed to be empowered and adaptable.
- Trained her team in crisis management: Every department leader now had a clear plan for handling disruptions.
- Encouraged innovation: Sophie fostered a culture where employees could propose new ideas, ensuring the business stayed ahead of industry trends. She wanted feedback, good or bad.
- Built leadership depth: Instead of all decisions flowing through her, she developed her managers’ decision-making skills, reducing dependence on all decisions having to go through her.
With these changes in place, Sweet Spot Confectionery would be a business designed to survive and thrive, no matter the obstacles. Sophie knew she no longer had to lose sleep over supply chain disruptions or economic downturns—she had built a model that allowed for adaptability and sustainability. Now, instead of just reacting to problems, Sophie’s business was proactively prepared for them.
Most businesses plan for growth, but few plan for resilience. Ask yourself:
- If a key supplier shut down, would your business keep running?
- Do you have a financial buffer to handle unexpected expenses?
- Can you find ways to improve your cashflow.
- Can your team operate smoothly without your constant oversight?
If you’re unsure, it might be time to strengthen your business model — just like Sophie did.
