What is the difference between a good and bad contingency plan?
I’ve just come off a coaching call with one of my US based clients, where we had a really interesting discussion about contingency planning!
Now don’t get me wrong there is much to be said in favour of contingency planning, as those who have continued to do well throughout this pandemic year can testify. But not, if you get contingency planning all wrong!
You see, many business owners have REALLY struggled over this COVID period, because whilst their business plan was working well pre-covid, they had never ‘stress tested’ their plan in a new environment! – In this sense, contingency planning enables us to quickly review, revisit and repurpose our plan to remain effective.
There will always be winners and losers in business, and this is NOT driven by those with the biggest savings in order to ‘ride out the storm’ (Although that can help in the immediate term) but those who are able to pivot/diversify the quickest. Learning to adapt to a new environment is key to survival in any walk of life. (just ask a chameleon)
However, this is NOT the same as: If it does not work, I can always go back and get a job!
Whilst that may be an option, it’s NOT part of the business plan, and will severely hamper any chance of survival!
I’m immediately reminded of the quote from Confucius:
The man who said I can
And the man who said I cannot
Shall undoubtedly both be right
And years later when Henry Ford added:
For the man who said I can, will find a way
Whilst the man who said I cannot, has already found a list of excuses
And quite bluntly, its just that, an excuse!
You see, during this pandemic, roughly the same amount of money has been traded around the world EVERY day, than pre or post lockdown! Between 5.5 and 6.5 TRILLION dollars a day to be exact! – Currency doesn’t catch covid!
I’ve now worked with a number of clients with whom at some stage in their corporate career had determined to turn their back on the ‘rat race’ and chose to set up on their own. They had either been offered a ‘golden handshake’ high 5 sometimes 6 figure payout. Or taken early retirement on a final salary pension scheme and decided it was time to see what it was like ‘on the other side’.
We had our initial consultation, and I could almost guarantee the result!…..ZERO
You see, there were so entrenched in EMPLOYEE mentality, they struggled to understand the fact that as CEO of One YOU ARE IT! And if ANYTHING is going to get done, its by YOU doing something!
And the same goes for the circumstances we now ALL find ourselves in. If change is required, the only one that is going to achieve that is YOU!
If your struggling to change, or understand either HOW or WHERE to change, then I’d gladly have a call with you to help understand what business post lockdown is likely to look like, and where to concentrate your efforts. However, it all comes down to mindset, and willingness to do so!
How well has your contingency plan been tested this year?
What have you now learnt about you and your business?
How can you benefit from this?
Drop me a comment below and let me know your thoughts?
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