Business Plan Mistake #10 – Inadequate Consideration of Pitfalls

by Feb 21, 2010Strategy | Entrepreneurship

Stuff happens! Things go wrong. When the worst happens, will you be prepared? Too often small business owners avoid thinking about what could go wrong because they believe negative thinking will affect their performance.

This avoidance is dangerous because without an adequate assessment of risks you will not prepared if something should occur. So today’s mistake is not an afterthought, but an integral part of your planning process.

Business Plan Mistake #10 – Inadequate Consideration of Pitfalls

Create a list of the pitfalls, regulatory issues, competitive challenges, and changing marketplace conditions that could adversely affect your business. Once you identify the challenges, develop action plans, safety measures, and insurance policies to protect the lender, the investor, and yourself.
 
In addition to external events, consider internal events like the loss of a key employee, major client, or your computer system.
 
Also consider the impact of acts of nature. As I am writing this post I am working from home. There is at least 6 inches of snow on the ground, and more falling. (I work ahead several weeks sometimes) When I left the office last night, I backed up all active projects onto an external drive. We use multiple online programs like Insightly, yousendit.com, gmail, and Google docs to share information so my entire team has access to their files and contact lists. It is not as productive as being together in the office, but it is close.
 
Your contingency planning should include how you will operate in bad weather, or after more serious interruptions.

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