I see approach too many small companies which might be solely depending on the CEO/proprietor, and that sometimes overlook the necessity to have a contingency plan. Whether it is pushed to the facet as a result of it isn’t perceived as “mission critical” or whether or not the proprietor refuses to face the truth that catastrophe can strike (“I’m Superman and my will to move forward overpowers the ability to get sick”), the very fact stays {that a} small enterprise may very well be crippled by the proprietor having critical well being points.
Undertaking contingency planning could appear daunting and sophisticated. But taken step-by-step it turns into a lot simpler and manageable. Ten matters to assessment and get began on a Contingency Plan:
Access to monetary paperwork and accounts. Does somebody have data of and entry to your monetary information and key accounts? If multiple individual, have they got entry to 1 one other? Do they belief one another?
Immediate money readily available. Do you will have a “rainy day” fund or liquid property (each private and enterprise)? Does the identical individual (or individuals) listed in subject #1 have the flexibility to liquidate property?
Cash movement. Typically in a small enterprise the president/CEO is the general public face to the purchasers (oftentimes the important thing salesperson). Are your purchasers uncovered to the breadth of your crew, not simply the depth of your skills? Do they know your crew and belief their skills?
Insurance. Do you will have life and incapacity insurance coverage to supply funding to the corporate for a transition? For instance, permitting the corporate to rent further govt/s to assist run the enterprise till issues stabilize.
Operations. How dependent are day-to-day operations on you, your data, and your efforts? Have you documented your processes? Have you delegated your key capabilities and transferred your data to others in your group?
Advisors. Have you outlined an executor to comply with via on the contingency plan? Do you will have in place a robust group of advisors (e.g., lawyer, accountant, property lawyer) for the executor to show to for help? Have you had this troublesome dialog with every of them?
Employee accountability. In your absence will your staff proceed enterprise as typical, will operations slowly degenerate over time, or will the staff work aimlessly? Will your crew come collectively and proceed ahead (virtually) seamlessly? More importantly, are particular person staff accountable to you – is that this a job for them? Or are they accountable to the complete group – are they supportive of the imaginative and prescient and mission?
Leadership. Who takes the reins if you’re out of the workplace (on trip or taking a sick day)? Do you belief them totally along with your imaginative and prescient? Are they a short lived substitute or potential successor? If a successor is not lined up, what would that individual appear to be?
Vision. Have you shared your lengthy and short-term visions along with your group? Is it embraced and embodied by everybody? Is there a transparent path of motion within the short-term?
YOUR well being. Don’t overlook to care for your self: eat nicely and train. It’s vital to keep in mind that your well being not solely impacts you and your loved ones, however impacts the enterprise which has a domino impact spanning past your staff and their households to distributors, collectors, purchasers, and anybody who actually transacts along with your group.
It’s by no means straightforward to debate all these “What if” eventualities, however having a contingency plan helps ease the burden and turns into one much less factor to fret about.
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