For small businesses in the UK, and across the world, the last three years have been extraordinary. From the tail end of the pandemic to disruptions in the supply chain and a significant shift in the habits of consumers, rapid and unpredictable change has left its mark on the business landscape. Resilience has been about more than simple luck for those who have thrived, it has been the result of carefully planned strategy. As we look towards the future there are some significant lessons to be learned and some key principles to consider if you want to build a resilient small business capable of withstanding the storms.

1. Embrace digital transformation as a core strategy

During the pandemic, digital adoption became a necessity in order to survive. Those businesses with a strong online presence, on all levels, were able to move all their efforts to their digital platforms when physical doors closed. This offers a very clear lesson. Having a digital footprint is a necessity and no longer a luxury. It should be at the very heart of any good business model. So, invest in a website that is robust and mobile friendly, use online tools for all your sales and communications and ensure you are using data to better understand your customers. When you have a digital infrastructure that is flexible you can continue to serve customers and operate your business, no matter what happens in the world.

2. Diversify your revenue streams

Relying on just one source of revenue has always made people vulnerable. This has been brutally exposed over the last couple of years. Those businesses dependent on in-person-sales were hit very hard. Conversely, those offering online sales as well, or servicing a mix of B2B and B2C clients had more adaptability. Diversification was shown to be a financial shock absorber, making sure if one channel struggled others were there to help.

3. Prioritise agility over rigidity

Being able to adapt quickly to a change in circumstances was what made some small businesses thrive.  Continual policy changes during the pandemic, in combination with market shifts were kind to those businesses making fast decisions and implementing new strategies overnight. This agility is a mindset that businesses need to embed into their future structure. Be willing to experiment, learn from any failures, and above all be responsive to market feedback. This could mean adopting a lean startup approach when it comes to testing new product lines, adopting flexible work arrangements for your team, or reviewing operational processes regularly in order to eliminate bottlenecks.

4. Invest in strong customer relationships

In times of crisis, brand loyalty is invaluable. Any businesses that can maintain open communication, demonstrate empathy, and go that extra mile for their customers is someone a community is more likely to champion. Technology can help with this, but the human touch is what really builds a resilient small business. Email newsletters help to keep customers informed, and  social media is great for engaging in two-way conversations; a personalised service makes every customer feel valued. Strong relationships do not just help drive repeat custom. They also create a dedicated base of loyal customers who are with you all the way

5. Build a resilient supply chain

Supply chain issues have been plagued with issues, meaning many businesses have been unable to source products or materials. It may not be possible for a small business to influence global logistics. However, being resilient by diversifying suppliers can make all the difference, as can sourcing locally. Partner with several vendors to reduce your dependency on an individual point of failure. Explore local and regional suppliers. This can shorten your supply chain and also supports your local economy whilst reducing your environmental footprint. Again, this is something which is increasingly important to consumers.

Lessons learnt during the last three years can help in the future. Building a resilient small business is not simply about hoping to survive the next crisis, but creating a business that is stronger, more agile, and better connected to its customer base and community than ever before. When you embed these principles into  business operations, you make sure you are not only prepared for change but ready to navigate your business through it.