Even in the best-managed, constantly growing and profitable businesses, bad things can happen.

There is an endless list of possible business reversals, such as wide swings in customer needs, causing sudden sales volume downturns, which then causes inventory and cash flow problems.

Somewhere in every company there are prima donna or rogue staff members, alienating other staff members or customers. Adverse weather changes the normal business landscape, transportation issues arise, causing sourcing and delivery problems and the list goes on, seemingly forever.

I've seen many businesses go through difficult times. Some affected companies survive these calamities, others fold. Why?

The most critical element is the expertise and leadership of management. Excellent leaders have the courage to acknowledge that there is, in fact, a problem, instead of denying it.

Then they take the time and effort to assess the problem and devise a series of solutions instead of trying to perform a Band-Aid-type quick fix. The solutions are implemented all while keeping that proverbial "wolf at the door." If the solution works, they don't just go back to business as usual; they figure out early warning systems to wave big red flags if the problem reoccurs.

To the outside observer, these excellent companies seem to be paddling in placid waters. But they just make it look easy because the leaders are aware that potential internal and external problems are lurking and ready to seriously damage the unwary and complacent. They constantly play the "what-if" game, assessing potential land mines and create contingency plans to disarm them whenever they show their ugly head.

Those excellent leaders work hard at becoming even better. They attend seminars. They counsel with outside advisers. They always are looking ahead, working to make themselves, their staff and their company better at serving their customers, improving their products and services, updating their internal systems and processes.

But even then, bad things are guaranteed to happen. But in great companies, those bad things are spotted fast and minimized to the greatest extent possible, because of effective leadership who constantly work at becoming still more effective.

Opinions expressed solely are those of the writer. Larry Galler, of Larry Galler & Associates, is a marketing and management consultant for small and mid-size companies. For more information or to get his free report, "Tolerations driving you nuts? Eliminate them now!" contact larry@larrygaller.com or call (219) 464-9463.