We have all heard the saying, “Things will get worse before they get better,” and sometimes it’s true. But don’t think that because you’re going through tough times in your business, it can only get better. I can tell you from experience that there is always another problem lurking around the corner. This doesn’t mean you should be ready to give up, but it does mean you need to be prepared. I’ve had two or three major things go wrong during a short time period, and I’ve dealt with each one separately. But if you have some type of contingency plan already in place, you can more easily weather the storm.
Take the time now to jot down a few notes in case any of the following situations arise. File them away and add to them whenever you can. If one of these situations arises, you’ll be glad you had ideas ready.
- Your business building burns down
- A key employee leaves or dies
- Sales drop 50 percent or more
- All of your computers crash
- A main supplier goes out of business without notice
- A big competitor cut prices by 50 percent
- You get sick and cannot work
- All your employees walk out
- You have a family emergency and have to be away from work for a month
- The bank calls your loan or cancels your credit line
- New technology destroys your market
- Suppliers force you into bankruptcy
The list of possible crises could go on and on, and it doesn’t matter whether there is a recession, a financial crisis, or anything else happening—any of these things could happen. But having a few plans ready and waiting can take some of the sting out of it and make recovery quicker. When a tragedy or disaster strikes, your mind is not always clear and able to come up with solutions. Even rough notes or an outline will give you a head start in the right direction.
When a financial crisis hits your business, use all the mental and physical tools you have to get through it. When creditors see your dedication to solving your problems, most will stand by you. And if another crisis happens in the future, you’ll be well equipped and ready for it.