With all the recent news stories and financial experts discussing the potential of an upcoming recession, it’s hard not to get a little uneasy about the future of your business. Amidst all the red signs, do you sit back and hope for the best or do you start preparing in advance? The answer is simple — if you don’t have a plan already in place to help you stay afloat in stormy weather, it’s time you build one.
Having a contingency plan for your business can help you to mitigate any risks and react appropriately in the face of a setback, no matter what that is. To demonstrate our point, we’ll show you exactly why we recommend having a contingency plan for your business and how you can set one up today.
A recession isn’t the only thing that could sink your business if you’re not prepared. A simple disruption like a power outage, a critical illness, an early death, or a natural disaster could reduce the production of your company and put you out of business. A contingency plan is designed to keep your company running and minimize loss, no matter the circumstance.
Keeps Everyone Calm
When a business-related disaster happens, people panic (naturally), especially if there are no specific instructions to follow. This can exacerbate the situation and impact the recovery time needed for your business to get back on its feet. Fortunately, a contingency plan can provide a clear plan of attack so that everyone knows exactly what they need to do and who to turn to for instructions. This ensures that your employees respond quickly and your business gets back to the status quo as soon as possible.
Protects Your Business
A contingency plan is similar to an insurance plan — it’s put in place to protect your business. It starts by looking at your main risk factors and what makes your business vulnerable. Then it puts policies in place to protect your business as much as possible from these risks. That’s why a contingency plan and insurance plan go hand in hand — your contingency plan helps you minimize the risk factors, and your insurance covers you when these unforeseen (or foreseen) circumstances do actually happen.
Gets You Back on Your Feet
Would you know what to do if a natural disaster destroyed your computer programs or critical machinery? A contingency plan ensures that your corporate records and intellectual assets are properly backed up so that your business can get back on its feet right away. What if you fell ill and couldn’t run your business — do you have a second in command ready that you trust? A contingency plan ensures your management team is adequately trained and prepared to step up and take over your business if you can’t.
Creates a System of Checks and Balances
Contingency plans also create a system of checks and balances. This is designed to prevent any problems that can arise during and after a crisis, such as operational errors and mismanagement. In the event that something does happen, it will provide the tools for you to evaluate and reorganize your company to prevent any future incidents from happening again.
When you need a contingency plan for your business, we’re here to help. At The Beacon Group of Assante Financial Management Ltd., we can give you the advice you need to protect your business wealth and legacy no matter what speed bumps or setbacks arise. To learn about our professional business services, contact us today.