Consultancy House was growing rapidly. It had a presence in several Libyan cities and planned to expand further during 2011. The Libyan conflict changed everything; our business plans were no longer about growth, they were only about survival. In this article I describe how CH survived the Libyan conflict and some of the steps we took to make that happen.

The gathering storm

What became known as the Arab Spring began in Tunisia and quickly spread to Egypt. After the collapse of the Tunisian and Egyptian governments unrest started in Libya.

Anarchy followed. Many companies lost equipment and premises. Later the Transitional National Council restored some order but this was too late for some businesses. Fortunately we were not one of them.

Planning to survive

The first step we took was to stop operations across Libya from 19 February 2011. We gave all staff a week off while we took stock of the situation and made plans.

A week became a month while we waited for the unrest to calm down. In mid-March we decided to start work again but even after a month we could not operate to our full capacity or to any degree of normality.

Overcoming adversity

Once we decided to reopen for business, we had to think about the issues we would face and the steps we would take to help us work around them.

Moving from Tripoli

Tripoli was too dangerous. We decided to operate from our Al Baida office – being in eastern Libya, Al Baida was far enough away from the major conflict. This meant moving some key staff from Tripoli and Benghazi. Although we now had an office to work from there were many other problems to overcome.

Communications

We were cut off from the rest of the world. We had no mobile phones, no Internet and all post offices were closed. And couriers like DHL and TNT had stopped operating in Libya. We organised access to the Internet by using a two-way satellite connection. For voice communications we used a satellite telephone. These were expensive solutions but the ability to communicate with clients was vital.

Access to cash

All the banks in Libya imposed caps on cash withdrawals of around $600 a month per account. This made paying salaries and other expenses difficult. We had to minimise our need for cash, but how?

We agreed with suppliers that we would pay them by cheque. While this affected our bargaining position it meant the liquidity problem became the supplier’s. We also paid employees by cheque.

Power supply

Power cuts became the norm. As our business relies heavily on electrical equipment, especially computers, a power cut means we cannot work.

Our Al Baida office regularly experienced power cuts lasting six hours or even longer. This meant we couldn’t work conventional hours but had to work when the power was on. We also maximised our use of laptop computers and searched out other premises equipped with generators.

Problems beyond our control

While there were problems we could mitigate, there were other problems that we could do nothing about. For example, our non-Libyan employees left Libya creating a staff shortage, our international client businesses and their employees left Libya, and records were lost when tax offices were destroyed.

What we have learned

The experience we have gained from the conflict means we will be better informed and prepared should similar circumstances arise again.

Other businesses can learn from our experience and taking the following steps will stand you in good stead.

• Hold enough cash in case the supply should dry up.
• Leave some cash overseas as an alternative source.
• Keep your records up to date and regularly take backups. Do not rely on the authorities for records.
• Issue invoices immediately as these are records of what you have supplied. Your clients’ records may not be so reliable.
• Do not delay discussions with employees and customers once problems start. You will be amazed at how accommodating people can be.