You love your startup and, like a protective parent, you don’t want to see anything bad happen to it. Unfortunately, bad things happens to good startups and you need to have a plan in place for when problems arise. Don’t be the founder who gets by caught surprise by unforeseen circumstances – be ready for anything by creating a contingency plan for your startup.
For all founders, their focus is on growth during the initial stages of building their startup. Startups are a financial risk because a lot of experimentation goes into them and there is no guarantee that every idea will reach profitability. Contingency plans are unique to each individual business and as such, the founder needs to appreciate this plan just as they would their business plan.
A Contingency Plan:
- Identifies the risks that can affect your personal and your startup’s financial health and professional image
- Identifies what is absolutely necessary for your startup to operate if a crisis was to occur
- Has instructions on how your startup will respond to each of these emergencies or threats.
- Empowers a startup to handle emergencies swiftly and in a time and cost effective manner
- Empowers a founder to be composed and rational during a time of crisis.
- Should be based on the business goals of the startup. For example, what happens if the startup proves to not be as profitable as the founder thought? When should the founder walk away and terminate the business?
- Clarifies what should be done during and post-crisis. This could include apps and plugins used on the company website. Check out our Toolkit for the things that we use for the safe-running of the Beauty Founder website.
Contingency plans are unique to all businesses and so your Adult Homework is to complete your own contingency plan for your business. Consider getting public liability insurance for your business or a policy that covers your type of business. Finally, back-up your website frequently and check your contingency plan bi-annually as your business grows.