Preparing your Business For a Crisis

preparing your business for a crisis

What would happen to your business if you got sick?

You don’t like to think that the worst is going to happen. You want to be positive.

However, it might be worth spending some time thinking about the worst and developing an
action plan.

If the worst does happens, then it might be too late to make any preparations or changes.

If you prepare now, then if something bad happens, you can lessen the impact.

Large companies use several strategies to prepare for emergencies:
-Disaster Recovery Plans
-Business Resumption Plans
-Exit Strategy Plans
-Succession Planning

Each strategy is a little different, but the important thing is they take the time to anticipate
unusual circumstances and walk through the details of what to do.

In some cases, they do tests, experiments or even drills to road-test their plan.

As a small business owner, what can you learn from these strategies?

Prepare for the Worst

So, what should you consider?

Here are some considerations to help you plan for emergencies:
-Cash flow
-Paying bills
-Customer Service
-Delivery of products and services
-Website security
-Client support
-Computer and systems access issues
-Website logins
-Responding to emails

What if you are a solo-preneur? What if you are the only one in your business?

What would happen to your business if you were admitted to the hospital?

What kind of business structure do you have? Sole proprietorship, C Corp, S Corp, LLC?

How does that affect things?

Does anyone else help to handle your finances, either personal or business?

It’s a scary thought to think that your life and business could just unravel in an emergency.

They say an ounce of prevention is worth a pound of cure.

Reduce Risks with Proper Planning

What preventive measures can you take now that will reduce risks and increase the continuity of
your business in a time of crisis?

This is a valuable exercise.

It might actually expose some risks you were not aware of.

It might also help to identify the need for additional support, by hiring employees or contractors.

And you might even want to prepare your family with details about your business.

It might encourage you to determine ways to simplify your business.

It’s one more task you have to do.

But, what if the worst happens?

If you are in a panic and have not taken time to plan in advance, you will have to deal with it all
in the present moment. And that’s frightening.

You suddenly have to prioritize your health over your business demands.

If you have a written plan and you can call upon others to help you, it will allow you to focus on
your health. You’ll worry less and feel more confident.

Communicate with your Team in Advance

Remember that communication is essential.

If you have taken time to develop communications in advance, you will simply have to send out
announcements to initiate your contingency plans.

You can’t just assume that everything is going to go perfectly in your business.

Sometimes, you have to act like a contrarian. You need to predict the future, even if it is
negative.

Great leaders plan for both good and bad circumstances.

Get on it!