Posts Tagged ‘planning’

Crucial planning ahead for problems

Wednesday, August 13th, 2008

Contingency planning and being prepared are important steps for a business owner – but steps that are not urgent so can easily be left behind in the day to day busyness of business and making a profit.

I was reminded of this topic today when I read an article called ‘When bad stuff happens’ – being about small business owners needing to think ahead to potential problems. And having procedures in place to cope when problems do arise.

Back in 1999, I had a contract to prepare some contingency plans for a major Australian company. We did various things, but one key task was preparing a checklist and contingency plan for the morning of 1 January 2000 – the day computers were going to fail and planes fall from the sky! The checklist included things such as ‘turn on a light switch. If it doesn’t work, try a second switch. If it still doesn’t work, look at neighbouring buildings and street lights – do they have power?’ We thought ahead and gave staff options to get all the information before emergency procedures were put into place.

So what sort of things do you need procedures for in your business? Obviously, that depends on your business, but some simple procedures you could start with are:

  • make sure someone else has a list of key contacts in case you are suddenly out of action. For example, my key clients and contacts are on a list with my husband so they would not be left wondering about me if I disappeared for a while
  • give someone else access to your PO box, or at least permission to get your mail redirected
  • prepare a list of essential business passwords so someone else can manage things – for instance, passwords for your blog, email and online shop administration
  • if you send out products, writing a procedure on how to package and send them is crucial for another person to be able to pick it up for you
  • if you are a service provider, establish some relationships now so there are people you can refer clients to or outsource work to if you can’t complete promised work
  • give your bookkeeper, accountant or a trusted person the means to be able to complete IAS/BAS statements for you, including how to pay any tax owing, so you avoid fines and problems with the ATO while you are ill or unavailable
  • prepare some standard responses to emails so the same message can be sent out even in your absence. Think about adding some of that common information to your website, too, to reduce how many people ask the same question – much easier for someone trying to fill in for you, but also a great time saver for you in the mean time!

If you start implementing some of these plans into your busienss, I’d love to hear about it – although I hope it never becomes necessary to use the procedures for a negative problem (using them because you win a trip around the world is a different story!)

Use your words and time wisely!

Be prepared

Sunday, June 8th, 2008

Back in April, I wrote about cuboree – a camp for Victorian cubs and leaders. I wrote that I expected to be able to use cuborre as examples in business behaviour and strength.

As I mentioned, cuboree was affected by strong winds that have since been called a cyclone. The entire campsite of about 4,500 people (mostly 8 – 10 year olds) was locked down for an entire afternoon.

It was certainly an experience to remember and thankfully there were no major injuries, but it wasn’t something anyone had expected or hoped for!

There were various things put in place over the storm period that kept us all safe. For instance, leaders were told a storm was coming the previous night so we could prepare our campsites and warn the cubs in the morning that there would be strong winds. Programs were adjusted to suit the conditions and regular updates were provided to pack leaders. The fact that there were high wind rated marquees available, as well as permanent buildings,  shows how the organisers had planned for problems. The cuboree website was already in place so it was simple for the camp to keep parents and others ‘at home’ informed about the cubs, rather than having 3,000 parents ringing or visiting the campsite.

In business, being prepared for possible problems is called contingency planning and is very important. Planning doesn’t mean you think the problem will arise, but makes it easier to deal with the problem if it did arise. It’s like having some paracetemol in the cupboard – you may never get a headache but if you do, you want the medicine quickly.

Contingency planing depends on the size and potential impact of the problem. For instance, running out of ink for the printer is probably covered by having a spare cartridge in the cupboard and ordering a new spare once it is used. However, the plan for how to cope if your business premises are burnt in a fire will be a lot more complex and detailed.

Some contingency planning is simple and practical – having spare ink for printers, spare light bulbs and a first aid kit – while others are much better if written out and added to the procedures.

How much contingency have you planned for in your business? Have you done this formally or just built up a supply of spare materials for instance?

I would love to hear some examples of how contingency planning has saved your business in some way, too.