How well have you planned for a change in circumstances that are inevitable in our personal and professional lives?
Do you have contingency plans in place in case, you lose your top salesperson or a competitor lures away your best customer? How would you handle being told you are being transferred to another city or your spouse unexpectedly loses their job?
According to an article from Indeed, a contingency plan helps you prepare for unanticipated occurrences that might cost you time, money, or even your entire business.
Here are 7 Steps to help create your business contingency plan:
1. Identify the essential components of your business - Determine which employees, resources, and processes are necessary to keep the business running.
2. Determine your risk - Identify potential risks such as natural disasters, economic downturns, labor strikes, material shortages, distribution problems, etc.
3. Organize your group of risks into categories - Risks come in a multitude of forms but they can usually be broken down into the following categories: Financial Risks, Time Risks, Technical Risks, Environmental Risks, and Resource Risks.
4. Prioritize your risk based on impact and likelihood - Put more work into the events that pose the greatest threat to your operations.
5. Determine how to resume normal operations for each risk event - Identify what would need to be done to get the company up and running and who is responsible for each activity.
6. Share your contingency plans with essential personnel - Distribute your contingency plans across the organization so that everyone knows their role and the roles of everyone else on the Contingency Team.
7. Update your contingency plans on a regular basis - Contingency Plans should be reviewed quarterly to make sure the right people are in place and understand their roles as part of the plan.
Please check out the short video below to learn more about the importance of developing a contingency plan for your business (or personal life.)
Also, please leave me a comment about any contingency plans you have developed for your business or personal life.
Author & Motivational Speaker
Terry is a sought after speaker who believes in the power of a story to motivate, inspire, and help others lead their uncommon and extraordinary lives. By combining his eleven-year cancer journey with his diverse business, athletic coaching, and hostage negotiating expertise, he delivers compelling yet relatable presentations for conferences, on-line events, panels, meetings, and seminars.