How is your contingency planning?

You will remember that many homes and businesses in Somerset were flooded in the winter of 2013-4, and even with the dredging which took place in the summer, others may be flooded in future winters. Subsequent winters have seen flooding in the Lake District and in other areas close to rivers.

It is a sad fact that at least half of those businesses devastated by flooding will never recover, and those that do, may take a long time to get back on track.

Before they can repair and rebuild there is often the initial wrangling with the insurance company about how much they should pay out, but there are far wider implications to a business than just putting right the premises.

The problem is not just the flooding itself but the downtime the business experiences whilst the damage is repaired, and the consequences of that downtime.

Do you continue to pay your staff even when they are not able to work and if you do so, how do you afford a wages bill when you have no income coming in? Once even loyal customers have gone elsewhere, how do you persuade them back when you are up and running again?

These are the type of issues many businesses do not consider until forced to do so.

Flooding is one type of business catastrophe but there are many others all businesses should consider and plan for. The scale of the catastrophe will be linked to the importance of the occurrence to the business.

For example, if your business server fails how big an impact would that have on your business? If all your staff need to access information on that server 24/7 it could cost you dearly and clearly in that situation it is vital that you have a backup plan to cover just that type of emergency.

Alternatively, if you are heavily reliant on one employee what would you do if that employee goes off sick for an extended period of time?

Every business has its own ‘flood’ scenario and it is hugely important that you have a disaster recovery plan to mitigate against the worst effects of a catastrophic event. You need to build your flood defenses – first identify the scenarios which could do the worst damage, plan for how you would deal with those scenarios in the most effective way, and ensure you have the ‘backups’ in place.

Of course we hope never to use our backup plans, but at least if we have one in place, we are as prepared as we can be if the worst happens.

Fiona 🙂

Welcome to 2017!

dancerAfter a fairly turmultuous 2016, a year which was surprising and sometimes shocking, what will the new year bring? If 2016 has taught us anything it is that it pays to expect the unexpected!

In the next couple of years we will see some big changes – perhaps – in the environment in which we do business – or not! We just don’t know.

But whatever happens it is likely that any changes will be difficult to predict and to plan for robustly. This is because many of the decisions our suppliers, customers and staff will be making are likely to be based on their gut feelings rather than facts. Surely the EU Referendum has shown us that!

So what can we do to make sure we ride any storm?

Well, of course, this time of year is the time when many of us make New Year’s Resolutions and promises about what we are going to change in the coming year. Some of us want to be fitter and/or more flexible so our bodies are better able to meet our needs as we get older (I myself have a big birthday this year – 21 is a great age!!). Some of us want to lose the excess weight that seems to have crept onto our bodies over the years without us particularly noticing.

And some of us want to take control of our finances and to strip out unnecessary spend so we are better able to afford the things that are most important to us.

All of these goals are ones we can apply to making our businesses better able to cope with the change which is coming.

Make your business fitter and more flexible by reviewing how you and your team work. Ensure everyone is motivated to work effectively as part of a well oiled machine.

Strip out any surplus fat. Businesses which has been around for any length of time are likely to have areas which need to be slimmed down or stripped out altogether.

Take control of your finances. Look at what you spend your money on and make sure in the future you don’t waste your hard earned cash. A great place to start is to look at your bills to see where easy money can be saved – in particular utilities, rates, insurances, and IT costs.

And, of course, have a clear contingency plan detailing how you will reduce the risks in your business model. Although you may not know how the business environment will change in 2017 you can fortify your business against failure.

Fiona 🙂