Although it isn’t very nice to think about, planning for the worst case scenarios for your business is really important. It might require some upfront investment, but it is certainly worth it to make sure that if the worst does arise, then you and your business are protected. So, we are here to introduce the basics to help you prepare as best as you can for the future.
Cover Each Area of Your Business
The first thing you need to do to start planning for worst case scenarios is to work through each area of your business, run risk assessments and create a contingency plan. For example, if all of your products are stocked in one warehouse and there is a fire, what would you do? Or, if you get the majority of your products from one supplier and they go bust, what would happen? Working through your business with the assistance of your employees and creating plans for as many eventualities as you can is important.
Delegating is important here, as of course it would be difficult to cover every element yourself. However, overseeing the process is vital.
Invest In The Right Insurance
The first step might seem quite overwhelming, as it is a big task. So, the best thing you can do is to make sure that you have the right insurance cover for your business. Going back to our first example, if your warehouse did have a fire and stock got destroyed that needed to be sent out to your customers, insurance would cover you to give them all refunds. If for some reason your one supplier didn’t send you the products after you had paid, if you had credit insurance, you would be covered for the amount of money that had been lost. There are so many different types of cover, so it is worth working with a credit insurance broker to make sure you get the right one!
On that note, when it comes to insurance for your business, working with an experienced broker for all the different kinds of insurance for your business is advised. This way, you won’t be trying to chase claims with lots of different people, but you have one point of contact who will resolve the issue for you.
Succession Planning
Another thing that can have a big impact on your business is someone leaving, especially for smaller businesses. If a significant member of your team leaves who carries a lot of responsibility, it can really impact a business. Similarly, if a really great account manager decides to leave, that could have a direct impact on your clients. So, having a succession plan for all executives, managers and key personnel in the business is key. For example, if a senior account manager leaves, you might have been monitoring the performance of other account managers and decide who would step up.
It is normal for companies to rely a lot on important employees, and you might have a great relationship with them, but having a plan is vital.
Final Thoughts
Although no one likes to think about the possibilities of something bad happening to a business, you will seriously regret it if you don’t! The best way to avoid disaster for your business is to plan for it properly, so you are as ready as possible to handle any challenge that is thrown your way. Make this a priority now for your business and it will certainly benefit you in the future, as well as giving you serious peace of mind.