Prepare for the unexpected when creating an operating plan and budget
The last ten years have taught many of us that the unexpected can, and will, happen. It would be naive of us to think that all bad things are behind us and that the sky will be blue for the foreseeable future. How many businesses failed because their operating plans and budgets only assumed hockey-stick like growth? Business owners and managers need to have contingency plans (in the last two years, they have been called survival plans — meaning, all the steps that will be taken if the worst possible thing(s) happened to the business, the market or the economy). Many businesses that survive an economic meltdown or other unforeseen challenge often thrive in the long term.
When you plan for your business, have a second plan, which you will follow if the unexpected happens and “survival” suddenly becomes your short-term goal. Being prepared for the unexpected could put you at a competitive advantage if others in your industry do not take the same preparatory steps. Furthermore, developing a plan when not in the middle of a catastrophe often will be more clear and better develped, than one created when in the middle of a crisis.
How many predicted the economic troubles we have faced since 2008? Not many, but many were prepared for the unexpected and quickly took steps to ensure the survivability of their businesses, and these businesses then had opportunities in the recovery that competitors may not have had.
