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Is Your Contingency Plan In Order?

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The economy is struggling, a vital customer quits ordering, you loose a key employee, or a natural disaster strikes – is your business ready for these types of scenarios?  Great businesses answer YES and they may even be offended if someone asks.  

The reality is that most businesses have not given the time to create a contingency plan.  Why? Below is short list of reasons:

  • Business is thriving
  • It requires discussion on tough issues that typically are avoided
  • It takes too much time
  • We are rock solid and do not have to worry
  • Poor management

Contingency planning is equally as important as your annual business plan or your strategic plan.  Remember that you have a group of employees, owners and their families counting on the fact that business survival means their own survival.

Without a contingency plan, recovery from a tough situation becomes difficult and may lead to the death of the business.  Gather your key people, talk about the issues that could drastically impact your business and create a plan to cope with the issues.  Contingency planning should be a part of sales, profit and stock growth planning. 

Do not wait for the storm to happen, make sure you are equipped and ready when the storm arrives!

Victor Aspengren

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Comments

Excellent recommendation to make sure your contigency plans are in order. 50% of businesses struck by disaster don't reopen. Even in Cedar Rapids, with massive state and federal assistance, only 75% of business affected by the 2008 flood had reopened in six months.

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