3 Steps To Building A Successful Contingency Plan For Your Business

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Life is full of surprises and we can't control what happens to us. BUT we can be proactive and put a good contingency plan in place to help us deal with these events when they occur. Think of it as a first aid kit for your business. Here are 3 steps to building a successful contingency plan for your business.

Step 1

Figure out what main areas of your business would be at risk in the event of an emergency. For example, if you live in an area that is prone to weather emergencies you may want to put a plan in place to deal with power outages or safe evacuation procedures.

Step 2

Determine what it really takes to run your business. If you work from home and use technology to run your business then ensuring that you have a data back up plan is essential. Also having a system to get internet service is important if your main internet supply goes down. Are you providing services that are prone to lawsuits? If so making sure you have good professional liability insurance plan in place is a must. Eric Michaels from Hiscox USA an industry leader in small business insurance states, "Lawsuits are not just stressful and distracting; they can actually shut down your business if you’re not prepared to defend yourself. This year alone, small businesses may face a bill of $152 billion in tort liability costs, according to the U.S. Chamber Institute for Legal Reform."

Step 3

Will your business continue uninterrupted if you get sick or need to care for a family member? If not then it's time to identify a trusted colleague who can step in to assist your clients if you are not available. This trusted colleague can also be your backup plan for fun things like family vacation leave.

We all need to think about planning for the unexpected. Being an entrepreneur is fun and exciting but it can be very stressful if we don't act in a proactive way to plan for emergencies before they happen.

What about you? Do you have a current contingency plan in place and if so can you share some of your best tips?

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