Business & Finance Entrepreneurship-startup

Business Contingency Planning : Profit & Loss

    Immediate Tasks

    • Depending on the size of your company, you will need to break down your corporation or business into groups. Each group will have specific tasks and directives to complete upon the initiation of an interruption in service. Typical groups include management, operations, technical, administrative and field divisions. Each group needs a designated leader, and the leaders of each group need to touch base with one another regarding progress and status. Employees should all know where to find their directive during said crisis, even if that is a specific person they dial up and request a task list from.

    Business Impact

    • The next step is to keep production as seamless as possible. One should have predetermined the acceptable minimal levels of service and output so your work force can make accommodations to meet those goals. Congruently, you will need to determine which areas of production or service are suffering the greatest impact due to the event interruption. It is essential to detail what is needed to move forward. How much revenue will be lost? What costs are going to be entailed? Where will I pull the monies needed to move forward? What will insurance cover, and what can other division do to compensate for said impact on profit and inevitable loss? A ready contact list of who to call for what is an essential tool.

    Outsourcing

    • As part of one's contingency plan, you will need to devise a system for filling in your gaps from literal man power to monetary infusion. If something is broken, you will need a way to seamlessly cover your gaps. Usually, some sort of outsourcing will be necessary. This can be from trusted vendors who can perform specific tasks in your stead to keep you on production to divisions within your company performing double duty. As uncomfortable as it might be to think of what can go wrong, taking the time to do so can be the key element that carries you through a crisis without losing customers or damaging your workforce.

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