In difficult situations, business owners usually calculate all possible risks. But there is still a great percentage of uncertainty. Fortunately, there is something that will help you add some clarity. And this is thinking through various scenarios and developing action plans within each of them.
Expect the unexpected, they say. Be it the spontaneous investor’s withdrawal, the dismissal of a top manager, a supply problem, or a lack of funding – you must anticipate all of this. This can also include policy changes, falling demand, too much competition, or natural disasters. With no fallbacks, you will have to apply for government stimulus. But you’d rather avoid such a course of events, right?
Therefore, in this article, we talk about Plan B and what to keep in mind when creating it. But we warn you, you’d better free up as much time as possible to think things through. So, why not order custom writing at EssayPro before your deadlines get too close? A reliable assistant is a fantastic rescue from unpleased teachers – what do you say? And now, let’s move on to plan B!
You Ask the Necessary Questions
Of course, before starting a business, you analyze all your opportunities and possible paths. Working on Plan B is different as you are looking for alternative answers. This doesn’t mean that you are setting yourself up for failure. This is just a realistic approach that will prevent you from finding yourself overwhelmed. It will also help your business be more sustainable.
Remember, it’s all about being flexible and adaptive. Perhaps, all game-changing tips include this piece of advice. So, begin with global issues.
- What can I do if the main strategy can’t be applied?
- If my business faces an existential threat, will I be able to respond appropriately?
And here are more specific questions:
- What is the main purpose of my business? What problems am I trying to address? How can I reach the goal?
- Who is my target audience? Who else can I offer my idea/product to?
- Is my location static or flexible? What technology do I need for better flexibility?
- How can I communicate with my team and clients if the means we use now are broken?
- What funding sources are available to me?
- What raw materials are needed, and what are the alternative sources of supply?
You Review All Possible Scenarios
Some people know how to improvise on the go, having a better drive and mind’s eye. If their world is turned upside down, they easily accept a completely new reality. But most of us need a thorough evaluation, and that takes time.
Analysts recommend starting from three scenarios. The classic ones are pessimistic, realistic, (basic) and optimistic.
- A pessimistic scenario includes zero sales within the first three months.
- An optimistic one would meet the previously planned sales target.
- A realistic scenario would include 50% completion of the optimistic plan.
Your action plan must outline what you will do in each situation to keep your staff. This is a priority as reputation and human capital are the most valuable! Times change, crises come and pass, but with great people on your side, you will still move on. Plus, you should realize which financial cushion will be enough to support the business in hard times.
You Reduce the Damage
Plan B should mitigate any damage caused by the failure of Plan A. How do you limit losses? How do you win more time? Indeed, the main drawback of launching a business is losing all money. Therefore, all risk mitigation measures are essential. By the way, it is thanks to them that we often don’t know when something goes wrong with well-known companies.
You Allocate Finances
Сommercial expenses (those associated with the sale of the main product) should be paramount. They are cut last. On the contrary, back-office expenses and executive bonuses are limited almost immediately.
First and foremost is the staff: avoid pay cuts as long as you can. The second is everything related to marketing, SEO and PR, software, and other business-supporting things. The third is the release of branded products, snacks for the office, etc.
It is necessary to tell the team about what’s going on and what measures are being taken to stabilize the situation and reduce risks. If someone doesn’t support the chosen tactics and isn’t ready to adapt to changes, they should leave. After all, team spirit and unity are essential for a company to survive.
You Improve Internal Communication
When we say that almost all companies are faced with uncertainty, we primarily mean people, their employees. It is important to help them reduce stress, so think about the following measures.
- Making changes to corporate ethics. In times of crisis, it’s better to prohibit discussing political, religious, or other sensitive topics in work chats or at meetings. Explain that everyone has their own opinion, and work isn’t a place for debate.
- Real help to employees. Some are anxious, and some can’t save money. So why not invite a psychologist for consultations or conduct financial literacy lessons so that everyone can analyze their situation with an expert?
- Individual approach to each employee. This supports people and ultimately increases their loyalty to the company. If a person is stressed and needs an extra day off, give it. It’s the least you can do to earn an employee’s trust in a crisis.
You Boost Your Confidence
Nothing compares with the confidence you get from being prepared! When you have a plan B, you are more likely to boldly follow plan A since you know what to do if something goes wrong. Courage will give you the ability to take risks. After all, you have a fallback. Of course, we hope you never have to use it, but it’s still nice to know that it’s there.
Plan B will broaden your perception, save you time, and protect you from future frustrations. After all, your own business should be more fun than a nine-to-five job. You are your own boss, and everything is in your hands. So, make your journey unforgettable!
To Wrap It Up
If the COVID-19 pandemic has taught us anything, it is that you should always have a backup plan. Therefore, many entrepreneurs have chosen the phrase “Be ready for anything” as their creed.
Indeed, successful business owners are adventurers who see every problem as a challenge. They don’t get discouraged; they just move on. Recall the quote by Thomas Edison, whose journey was full of failures. He said: “I have not failed. I have just found 10,000 ways that won’t work.” After all, each finish is the start of a new course!
Yes, moving to a plan B can be a tricky decision. Sometimes, this means abandoning previous achievements or the entire client base. But remember that it is necessary for you to function in the long run.
“Unable to type with boxing gloves on. Freelance organizer. Avid analyst. Friendly troublemaker. Bacon junkie.”