Starting a business is an exciting process for entrepreneurs. The development of a great business model and efforts to convince investors to participate with their money can generate an adrenaline rush for many business owners. It is hard to imagine that your great business idea can fail so planning for problems is not something that comes naturally. Problems and errors in execution do arise in business and proper planning allows for consideration of a few of the possible ways failure could occur. Proper identification of the potential issues allows for development of contingencies that will increase the odds of success.
It is not possible to identify every possible glitch that may arise in your company’s future so you must prepare for pivots in critical situations. The early identification of certain issues can shorten the response times and improve on actions taken. Planning can be weeks or days before an issue arises, it is not necessary to be years ahead. For example, suppose your company is working on a tight budget and you learn one of your suppliers or customers is having financial problems. Strategy Considers can lead to alternate sources of materials or changes in spending prior to an impending issue.
You are the leader of your business and your team may be of great assistance in considering alternatives. It is hard to bring the team together and alert them to impending doom at the last minute and the useful options presented will be fewer. Engaging them earlier and having their ideas and strategies discussed and vetted may help them be ready to execute more quickly so the company can avert catastrophe. It may be that early discussions with the potential initiators of the problems can help identify solutions if the discussion takes place early. It is critical that you evaluate your options of who to bring to the discussion and determine whether you believe they can be helpful or hurtful in the planning and preparation.
Some areas are worth consideration early and planning can take place with your team. Single supplier manufacturing can be a complication if something happens to your partner. Having backups ready and knowledgeable about the production of your products gives you alternatives. Perhaps you have a customer with financial problems that may default on a payment. Halting additional delivery of products may lessen your potential losses. You may even wish to cut back on certain expenses to ensure you can make payroll. The potential problems properly identified will dictate the consideration of your alternatives. You cannot prepare for all problems but alternative execution plans for those you know about may help lessen or avoid the ones identified.
Everyone knows that standing under a tree or in a pool of water in a lighting storm is a BAD idea. Still people end up in the wrong spots and hear about it on the news. It can be poor planning or the individuals were just unlucky. You can eliminate the poor planning and learn to pivot when unlucky. This will increase your chances of successful execution and build out of a great and profitable business.
You can follow Taffy Williams on Twitter by @twilli2861 and you can email him with questions at firstname.lastname@example.org or contact him via company contact info in the website. More Startup information is contained in his personal blog.