The COVID-19 has taught us lots of things. We all know that our lives and businesses have been touched in one way or another by this pandemic. In fact for some, it will take months or even more than a year to fully recover from the effects of this health crisis. So when this is all over, we should try to correct some of the mistakes we made before the outbreak of this pandemic. One of such mistakes is designing a plan B or contingency plan for our business.
If a business lacks a contingency plan, it will be hard to cope with a sudden crisis or emergency such as COVID-19. So here are 3 reasons why you such have a strong backup plan for your business:
1. Pandemics or other disasters may happen again: Yes, that is true. Nobody expected COVID-19. We never planned for it. All of a sudden, movement was - and is still - limited. Social distancing was enforced. Isolation and quarantine became normal. Just in an instant, businesses started struggling to remain in business. So the question is: Once COVID-19 is done and dusted, will we ever have such a pandemic or other emergencies again? You know the answer - YES. Going by what happened during this period and how businesses closed down will help you think and prepare for future emergencies so that your business can ride through any new waves. For example, you might have seen that your business needs more online presence or can explore other avenues to provide its services or sell it products. You might also make plans for staff to be able to work remotely. These and other plans put in place ahead of a possible disaster will fully prepare your business to withstand any strongly economic downturn in the nearest future.
2. Change in government or business regulations: Sometimes, there could be a change in government regulation which may affect your business adversely. Or there may be a change in government and the new administration wants to turn things around. They may come up with some business laws that change how your business is run. Without a contingency plan, your business may struggle to survive. Some government regulations for business may favour a particular business while other businesses struggle to cope. If your business is on the receiving end, then you might want to think about your survival plans now and not when it happens.
3. Changes in customer behaviour: The business worl is really competitive and a lot changes in a very short time. In the early days of mobile phones, battery life was a selling point which made Nokia to dominate the market in Africa. But as time went by, customer behaviour changed as smart phones from companies like Techno began to appear. People wanted the smart and sleek products though with a lower battery life than the Nokia phones with button. Nokia probably had or did not have a contingency plan for changes in consumer behaviour. Before they could know what, the market slipped from its grip. Having a contingency plan will help a business to strategise and react swiftly to the needs of the market. As such, they will not easily loose to competition or take a long time to plan and react - like Nokia did.
There are probably many other reasons why every business should have a backup plan. The ultimate reason being to survive and remain relevant in your sector. Just like some businesses were brutally exposed by COVID-19 and some did not even survive the pandemic, your business might suffer bankruptcy in the future if you fail to make a proper plan for any emergency that may occur.