Saturday, 14 June 2014
Business Contingency Planning and Curve balls
Contingency plans are vital for your ongoing business success.. A contingency plan is what will help you deal with the curve balls and unplanned events that arise. Despite your best research and planning, there will always be surprises or unexpected events. Markets and market forces are in a constant state of flux.
When you develop contingency plan you need to consider all issues that can think of that will either positively or negatively impact your business. There are a number of things that you should consider for your contingency plan including:
Your market niche - what contingency plan can you put in place if your niche dries up or turns out to be unable to support your business? Who are your competitors? How many competitors are in your market niche and how long have they been established in the marketplace? What is the point of difference with your product/service?
Labor market supply and demand - do you need a contingency plan (Plan B) for a lack of availability of employees or contractors? Where is your business located geographically?
Your products/services- if clients don't need the services you provide, are you able to move into different service markets? What is the level of responsiveness of your organisation?
A thorough contingency plan address a wide range of reasonable possibilities that could affect your ability to remain profitable and commercially viable. Your contingency plan should be revised regularly and thoroughly. The time spent in contingency planning can determine whether you prosper or perish!
At the end of the day, your company doesn't want to be caught without a contingency plan. For assistance with a range of business planning options, please visit our website.