During a crisis, it's easy for startup leaders to panic and make things worse. Here, we'll discuss how staying grounded will get you through a crisis. Miguel Tovar/University of Houston

The great pandemic of 2020 has brought to the surface the issue of crisis management. Especially with nationwide business shut downs in the last eight months, many companies are on a rocky road of uncertainty. Entrepreneurs are unsure of what the future holds after seeing revenues slow or halt in some cases. Layoffs, RIFs, budget cuts, departmental downsizing; all inevitable.

Way too many startup founders aren't equipped or experienced when it comes to crisis management. "In order to keep your startup going, you have to know how to identify a crisis before it spreads like a cancer and how to make big changes and big decisions fast and often," says Gael O'Brien, the ethics coach for Entrepreneur.com.

"Any time in which the world stops functioning in a way we're used to, a deviation from the norm, that might be the biggest early sign of a crisis about to rear its head," she continued.

Admitting you have a problem

O'Brien stresses that a leader should create an easy process whereby one can identify a crisis in its infancy. The key here, she says, is to make sure to recognize a crisis before it starts to consume your company. You'll have to learn how to contain the crisis by leading the charge in rapid decision making. Many entrepreneurs simply refuse to admit there's a problem at hand. Many times, admitting there's a crisis means admitting one was wrong. It also means they may have been wrong for years.

These entrepreneurs that refuse admitting there's a crisis often do so with common refrains like "I didn't want to scare anyone" or "if I admit I was wrong this whole time I'll lose respect."

"Great leaders aren't afraid to put their company first, even if it means a blow to the ego. These leaders are not afraid to inform everyone that might be affected know there is a crisis," O'Brien explained.

"They contain the problem and prevent it from becoming unmanageable. Good leaders don't opt for a temporary Band-Aid-like fix either. They aim for a permanent solution."

Casting for a crisis management team

There are two common mistakes startup leaders make when it comes to crisis management. The first is that they can miscast a crisis management team. Meaning, they put the wrong people in decision-making roles. You want people on your crisis management team who are not going to feel they will be blamed for a crisis or for controversial decisions.

When one is afraid of being blamed for something, they are more likely to obstruct and lie so that the team's focus is diverted. "These are people that will omit objective and relevant information if it means saving their own reputation or job. You want people that put the team first," said O'Brien.

Communication during a crisis

The second common mistake startup leaders make during a crisis is that they tend to under-communicate. It becomes habitual to keep things close to the chest. To become secretive during a crisis. Managers might feel that the less people know, the less chance there is of panic. However, doing this opens your company up to wild speculation among employees. Assumptions. And these assumptions are never good.

"You have to be forthright. It's not just that people have a right to know what's going on in their own company. It's also that if you leave yourself up to speculation, people will grow frustrated and worse, scared. Scared people make crises worse," said O'Brien.

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This article originally appeared on the University of Houston's The Big Idea. Rene Cantu, the author of this piece, is the writer and editor at UH Division of Research.

When faced with a crisis, it's essential to deliver clear, authentic messages to your target audiences. Getty Images

Houston entrepreneur shares communication tips for today's coronavirus environment

Guest column

The reality for business owners is that everything you say matters; your words are reverberated and felt throughout the company and all of your stakeholders.

During times of crisis, your voice is amplified to the max, and people listen to every word you have to say, which is why — if not completely thought-through — your voice can breed misinformation, confusion and stress. As we face the increasing uncertainty in our community due to the spread of COVID-19, it's critical for business owners to say the right things, to the right people, that will inform and motivate, and use their presence and organization to be leaders within the community.

Practicing what we preach, we understand that as communication experts, it is our mission and responsibility during this time to help our local business community. We are putting our money where our mouth is and for the last week have been offering free communication and marketing consultation to any business in need.

So, what is top of mind to our team right now, as we work with these businesses? Besides following recommendations from the U.S. Center for Disease Control and Prevention to curb the virus's spread, companies should actively be communicating to all stakeholders about the impact COVID-19 is having or could have on operations. Here are a few dos and don'ts to get you started.

Offer valuable tips to prevent the spread of respiratory diseases, but we all know to wash our hands by now.

You have to make sure that you are communicating valuable information with internal and external stakeholders — but through your own authentic voice. Offer suggestions on how to "social distance" or use your service/product remotely.

Internal stakeholders need to understand what's hard facts, what's soft facts (opinions and feelings) and what's just hearsay. They need to understand clear expectations when working from home and employees need to feel safe, accommodated and heard. Externally, be sensitive to what your customers and the community at large are going through and update your business practices and communications accordingly.

Communication with customers can be in an email, but you can also connect through text, through an online chat, via infographics or memes on social media, or an "on-brand" (and possibly witty!) reminder on what social distance may mean.

Don't stay silent — even if you don't know everything.

Don't let others control your company's narrative. As humans, we naturally fill in gaps in communication to understand what's going on around us. Rather than letting people assume information about your business, get in front of the conversation and share real-time updates as you adjust business-as-usual.

Consider alternative ways to reach external audiences and vice versa.

What happens if the majority of your customer acquisition model is door-to-door and no one wants to open the door to a stranger, or you have a centralized call center to handle customer service complaints, but these employees are now all working from home? Now is the time to reconsider how you'll engage with your audiences and win customers.

We recommend a significant shift to digital acquisition as people are going to be spending more and more time online in the coming weeks from home and there is a ripe opportunity to stay top of mind through targeted display campaigns and send interested customers to your website.

Create a proactive plan for shut downs.

Coronavirus is still an emerging, rapidly evolving situation and we have no idea what could happen but create contingency plans and have a crisis comms plan ready to deploy. Think through possible scenarios (closures, supply limitations, employee diagnosis, etc.) and have social media posts, email blasts and internal messaging ready to deploy should worst case scenario occur.

What your business says is just as important as who says it.

A spokesperson is your organization's mouthpiece. Choosing the right person is just as important as saying the right thing. Without the right person to speak on behalf of your organization, your message could be lost — or worse, they choke.

Your spokesperson should be credible, empathetic and authoritative.


Bottom line: When faced with a crisis, it's essential to deliver clear, authentic messages to your target audiences, stay true to your brand voice and position yourself as a leader – both internally and externally. Your company will thank you later.

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Allie Danziger is the founder and president of Houston-based Integrate Agency, which focuses on digital marketing and public relations.

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Houston SaaS startup closes $12M series A funding round with support from local VC

money moves

A Houston startup with a software-as-a-service platform for the energy transition has announced it closed a funding round with participation from a local venture capital.

Molecule closed its $12 million series A, and Houston-based Mercury Fund was among the company's investors. The company has a cloud-based energy trading and risk management solution for the energy industry and supports power, natural gas, crude/refined products, chemicals, agricultural commodities, softs, metals, cryptocurrencies, and more.

"We led the seed round of Molecule upon their formation and are excited to participate in their series A," says Blair Garrou, co-founder and managing director of Mercury, in a news release. "Molecule's success in the ETRM/CTRM industry, especially in relation to electricity and renewables, positions them as the company to beat for the energy transition in the 2020s."

The company will use its new funds to further build out its product as well as introduce offerings to manage renewables credits, according to the release.

"In 2020, we realized that electricity — the growth commodity of the 2020s — represented over half of Molecule's customer base, and we decided to double down," says Sameer Soleja, founder and CEO of Molecule, in the release. "We were also rated the No. 1 SaaS ETRM/CTRM vendor. With this fundraise, we have the fuel to become No. 1 SaaS platform for power and renewables, and then the market leader overall.

"Molecule is ready to power the energy transition," Soleja continues.

Molecule's last round of funding closed in November 2014. The $1.1 million seed round was supported by Mercury Fund and the Houston Angel Network.

Houston-based afterlife planning startup launches new app

there's an app for that

The passing of a loved one is followed with grief — and paperwork. A Houston company that's simplifying the process of afterlife planning and decision making is making things even easier with a new smartphone app.

The Postage, a digital platform meant to ease with affair planning, recently launched a mobile app to make the service more accessible following a particularly deadly year. The United States recorded 3.2 million fatalities — the most deaths in its history, largely due to the coronavirus pandemic.

After losing three family members back-to-back, Emily Cisek dealt first hand with the difficulty of wrapping up a loved one's life. She saw how afterlife planning interrupted her family's grieving and caused deep frustration. Soon, she began to envision a solution to help people have a plan and walk through the process of losing someone.

The Postage, which launched in September, provides a platform for people to plan their affairs and leave behind wishes for loved ones. The website includes document storage and organization, password management, funeral and last wishes planning, and the option to create afterlife messages to posthumously share with loved ones.

"Right now, as it stands ahead of this app, end-of-life planning is really challenging. It's this daunting thing you have to sit down and do at your computer," says Cisek. Not only is it "daunting," but it's time-consuming. According to The Postage, families can expect to spend nearly 500 hours on completing end-of-life details if there is no planning done in advance.

With more than 74 percent of The Postage's web traffic coming from mobile users, an app was a natural progression. In fact, Entrepreneur reports the average person will spend nine years on their mobile device. Cisek wanted to meet users where they are at with a user-friendly app that includes the same features as the desktop website.

"What we wanted to do [with the app] is make it so easy to plan your life and the end of your life using one click — as easy as it was for posting and commenting on social media," explains Cisek. "People are so used to reflecting on those behaviors and clicking one button to add a picture ... we wanted to make it that simple," she continued.

Cisek and her team focused on providing a "seamless experience" within the app, which took approximately four months to build, which mirrors the desktop platform.

Though The Postage's website had mobile functionality, the app includes the ability to record and upload content. Whether snapping a picture of their insurance policy or recording a video to share with loved ones, The Postage app allows users to capture photos and videos directly within the app.

After snapping a picture, "the next step inherently is sharing it with your loved ones," says Cisek. Photos, family recipes and videos can easily be shared securely with loved ones who accept your invitation to The Postage so "that legacy continues on," she says.

Since The Postage's fall launch, the company has grown a steady base of paid subscribers with plans to expand.

"We're really starting to change the way people plan for the future," says Cisek.