To run a successful business, there’s a lot of juggling required. However, as you try to keep on top of things, it can be easy for one thing to go wrong and this causing a ripple effect across your business. Suddenly your carefully laid plans fall through and you have no idea where to go next.
This is where having a backup plan in place can come in handy. While there are those who believe having a contingency strategy in place indicates that the business owner can’t possibly have high levels of confidence in the initial plans, it’s arguably better to have an alternative idea to implement. Here’s a look at why this is and when having a plan B is crucial.
Leap of faith
Setting up a business is a huge enterprise for anyone. Most entrepreneurs will know that when it comes to striking out on your own, the stakes are high and there is a real risk in play, from the financial gambles needed to the responsibility of being an employer with a team of staff.
With so much riding on the success of your business, it makes sense to have a couple of plans of attack up your sleeve should the first route not work out. This idea of having a backup is one of the reasons why some businesses were able to ride out the financial crash of 2007-2009 and why countries such as Spain have been able to forge ahead when things haven’t worked out.
It’s important to be ready and know what your next steps are when you face tough challenges.
Think it through
It’s essential that your plan B is as well thought out as your primary plan. While this second option isn’t necessarily something you’ll ever use, having a considered, well thought-out strategy can be exactly what you need to fall back on in the future.
When you need a backup
There are some key examples of times when having one in place can be extremely beneficial and save you from losing key things such as staff, investments and clients.
These will differ between businesses, but the key points to consider are:
- Backing up data
All businesses deal with data, much of which can include sensitive information or confidential financial details. Having a secondary system in place should something happen to this data, therefore, is important. What sort of security measures do you have now? Is there a way to introduce a backup store for all of the data that’s collected?
Remember that your backup plan must also take the GDPR regulations into consideration.
- Accounting for seasonal lulls
Many industries and sectors are impacted by seasonal trends. Whether you have to manage the drop in sales after Christmas or you’re a car dealer who has to consider the busy periods when new plates are released in March and September, plotting out when you want to provide deals and offers for customers is a savvy way to work out what’s coming up.
However, having a plan in place should this not reap the rewards you have in mind can come in handy. Maybe you’ll need to introduce that mid-season sale that you’d been keeping as a contingency plan or offer outlandish deals for a 24-hour period to shift old stock.
- Backing up equipment
How your office is powered is also a huge consideration. If the electricity is cut for any reason, work can be lost, and this can have a knock-on effect. Rather than depending on the electricity coming back on, it’s worth investing in a backup generator or similar equipment, just in case. For industries that work with and require tools, ensuring you have back up batteries is essential; by shopping the range of suppliers such as SGS Engineering, you can have added peace of mind.
Sometimes, you might even need a plan C. Having additional ideas to help you combat issues as they arise make sense. You have a lot riding on your business. By putting your plan B into action, you’re not failing; you’re taking the right steps to keep things ticking over.