What Is your Plan B?

It’s more than likely that, as an entrepreneur, you have heard much about having a “Plan B.” The $64,000 question, of course, is whether you have one... or even thought about having one.

Readiness is a valuable business characteristic. Being prepared to tackle any eventuality can be the single thing that will separate you from others. Having an “emergency” plan, an alternative or backup plan, that can be implemented should an unpredictable situation occurs, can be the difference between failure and success.

There are loads of solid reasons to write your PLAN B. Here are a few:

• Markets change. The market for your product or service may suddenly and unexpectedly be impacted. The greater your success in the market, the more likely a competitor will try to impose itself in your territory. What if the demand for your product or services deteriorates?

• Economic conditions change. Interest rate changes and recessions happen.

• Mistakes happen. It’s not possible to be successful in business without making some mistakes. Some may be inconsequential. Others not managed properly can be devastating. It is critical to be prepared with a Plan B. Recovering quickly and decisively can make a huge difference in getting back on track.

• Circumstances beyond anyone’s control or foresight can devastate a business. Knowing what you might do IF a natural disaster or pandemic were to occur, might lessen its impact.

Among the critical responsibilities of an entrepreneur is, whenever possible, to reduce risks and protect their personal investment and those of their stakeholders. Your Plan B is the business tool that is no-cost insurance, that minimizes potential challenges, threats, and setbacks. Oh yes, and a bonus: having one sets a positive example of delivering a proactive message of security to your team.

Consider the guidance and support of one of our retired executives in creating your Plan B. If you have one, ensure it is up-to-date and considers the current environment.