Don’t Forget To Plan For Contingencies
If one thing 2020 has taught us, it’s that you can’t predict the unpredictable!
Now, don’t get me wrong, I’m all about planning.
That’s why I preach about how small businesses need to prepare business plans. I write about marketing plans. If your small business was beginning to grow I’d be talking to you about strategic plans and risk management plans!
No, what I’m saying is that you must continue your planning habit and prepare your plans for your business so that you can look ahead, understand what might happen, and decide what you will do to take advantage of opportunities while mitigating the threats.
However, while you are doing this, your process needs to also understand that your plans must include contingencies.
This means identifying different, possible contingencies or scenarios.
You can certainly identify multiple scenarios and then plan for each eventuality, but I think that’s taking the attempt to recognise uncertainty a little too far!
The most practical way of planning for contingencies is to identify the most likely scenario (given what you know right now), identify a likely worst-case scenario, and identify a likely best-case scenario.
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