The Best Approach to Creating a Business Contingency Plan

There’s a popular Chinese proverb that goes “The best time to plant a tree was 20 years ago. The second best time to plant a tree is now.” That rings true for anyone whose business is enjoying some good growth and success, because thinking about the worst that could happen when the good times are rolling is something that is justifiably difficult.

If merely thinking about it is a challenge, what about actually putting measures in place to hedge against emergencies that can realistically put a halt to your operations?

When the good times are rolling is indeed the best time to put a contingency plan in place, because you really never know when that reliable boiler you’ve been running smoothly all along will suddenly give in, or when something like the heating system suffers a major fault.

If you want to create a contingency plan for your business or update an existing one, then Ideal Heat Solutions have created an informative eBook that will provide you with all the information you need. Below are a few examples you may want to consider.

Cultivate good B2B relationships

While it’s good practice for every business to strive for as much independence as possible, the reality of the modern economic climate is that success is preserve of those businesses that operate as part of an intricate, collaborative network. This doesn’t have to be viewed as a disadvantage at all, because cultivating good Business-to-Business relationships goes way beyond just accounting for a contingency plan. When things are going well, these relationships can help you maximise profits, but should things go wrong, you would be able to draw on these networks to get the assistance required to get you through crises.

Build up a good credit record with your FSP

When your business has the opportunity to make use of credit and pay it back in good time, that should be taken full advantage of. You never know when you might really need a line of credit to help transport a burst boiler or set up a temporary, but equally effective heating system, for instance. All of this would be made provision for while you’re planning for a more permanent solution to fix the problem and get back up and running again, of course.

All of this costs money, amounting to some disposable cash you may not readily have access to.

Simulate a crisis or disaster

It’s great practice to simulate a contingency plan and go through the drills that you would have planned for, in preparation for a crisis. A real sample of the business should be used in the simulation, because that is the only way you pick up on elements of the required contingency plan which might surprise you during the practical application of the process.

Build a good relationship with your customers

Sometimes your happy, long-term customers can assume the role of your creditors during a crisis. Even with businesses such as establishments of accommodation, customers who trust your business and are happy with your service will be happy to step in and help though something like advance payments to go with their advance bookings.

This, together with knowing exactly where to go and how much it’ll cost to rebuilt, all while deploying appropriate temporary solutions, can go a long way in saving your business from going under in the wake of even the biggest of crises.