Contingency Plans - Can You Handle Curve Balls?

ngency plans are absolutely critical for first yearare mergers or alliances in your industry have you
business success. A contingency plan is what willthought of how your business can react and stay
help you deal with the curve balls that get thrownalive?
at you. Despite your best research and planning,A thorough contingency plan address 15 - 20
you will encounter surprises: good and bad.reasonable possibilities that could affect your ability
When you start your contingency plan you needto remain profitable. These are things that are
to list out anything you can think of that will eitheroutside of your control that you must react to.
positively or negatively impact your business.Your contingency plan only needs to cover a
There are a number of things that you shouldone-year time horizon but it should be revised
consider for your contingency plan including:often.
Concentrating on a niche - what contingency planThe Bottom Line On Contingency Plans
can you put in place if your niche dries up or turnsYou don't want to be caught without a
out to be unable to support your business?contingency plan. Things happen - some positive,
Labor market issues - do you need a contingencysome negative. Your ability to weather the ups
plan for a lack of availability of contract workersand downs of your business will depend heavily on
or employees?the thought and time you put into your
General comfort with ASP software - if clientscontingency plan. Your ability to deal with the
don't need the services you provide, are you ableunexpected is what will keep you on track for
to branch into different service markets?success, or derail you completely.
Strategic alliances between competitors - if there