Do you remember the short story of the ant and the grasshopper? If you have no idea what I’m talking about, take a minute to read it now. The lesson hits hard, and it’s the foundation of solid business contingency planning.
Failing to prepare is essentially setting yourself up for failure. Staying proactive is the only way to make sure you have any real chance to recover from the unexpected surprises that will inevitably pop up in and around your business. Surprises are guaranteed. Your response to them is what separates the businesses that survive from the ones that don’t.
When Technology Lets You Down
Recently, I had a laptop I rely on heavily fail me over and over. It killed my ability to produce content for my podcast, blog, and email newsletters. That also killed my ability to generate revenue. To make things even more challenging, my wife and I are business partners who focus on completely different revenue streams, and we often need to use the computer at the same time. By the way, how does that always seem to happen?
Nothing about that scenario was good. Honestly, it was just asking for problems.
So, what was the solution? We now each have our own computer, and we keep several backups on hand. After reflecting on what went wrong, we stacked the odds in our favor for any future failure.
Unfortunately, if something can break or malfunction, it eventually will. Technology is especially guilty of this. You have to prepare for anything. For example, I lost a computer to lightning even though I had it plugged into a surge protector. Then I lost another laptop this year because of a mystery power loss that nobody could diagnose. This unlikely stuff happens to people every day, so why not you?
What Happens When Your People Walk Out
What’s your plan if your most valuable person suddenly quits, or if several of them walk out at once? Can you ever really prepare for that? The answer is yes.
As an employee at more than one company, I watched this scenario play out, and I was always amazed that nobody had a plan in place. Everyone should have defined roles, and they should be allowed to own their process in everything they do. Judge people on their results, not on whether their process matches yours.
This insight comes from my HR background, so pay attention. If the people working for you hate what they do, they will quit. When you don’t pay them well, they will quit. Beyond that, if you don’t give them a real stake in the success of your business, they will quit. None of this is groundbreaking, and none of it is hard to implement.
Cross-Training Is Business Contingency Planning 101
A huge mistake some companies make is leaving someone on their own island so long that nobody else knows how to cover their responsibilities. Cross-train your people, for God’s sake. If you don’t, it’ll come back to haunt you, disrupt your operation, and cost you money. Sometimes it’ll cost you clients, too.
Cross-training is one of the simplest pieces of business contingency planning, and yet most companies still skip it.
The Single Client Trap
Another situation that makes me shake my head is building an entire business off one big government contract or one anchor client. What are you going to do if that relationship goes away, besides fire everyone who works for you and then fire yourself?
Build multiple streams of income. Whether that means more than one product or service, multiple clients, or better yet, both, the goal is the same. Reduce the risk of any single point of failure tanking your entire operation.
Build Your Plan A, B, and C
These are a few common scenarios that no business owner wants to think about, but you’re crazy if you don’t. Expect the best and prepare for the worst, always. You can rest your hat on that statement. That mindset is the heart of business contingency planning.
I strongly recommend evaluating the products and services you offer, the people who work for you, and the technology and tools you depend on for daily operations. Ask yourself where the risks are. Try to imagine the worst-case scenarios, and then build a plan A, B, and C for dealing with each one. Murphy reminded us that “if it can happen, it will.”
For anyone reading my thoughts for the first time, I want to assure you that I approach life with an extremely positive attitude. However, I’ve fallen into the trap before of focusing on the sunshine and ignoring the uneven ground under my feet. I’d like to save you the same headaches, so I hope you can take something away from this for yourself.
Is that cool with you?
Have you ever had an unexpected surprise sneak up and rock the foundation of your business? How did you prepare for the next one? Drop your story in the comments. Sharing it might help someone else, so don’t be shy. The book Managing The Unexpected digs into how unexpected events develop and how you can build a more reliable organization. Grab a copy if you want to go deeper on this.
Thanks for reading, and I’ll catch you again soon.
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