Contingency planning is insurance for your business and family
Ever had the chance to stop and think "what happens if?" Well, if not you really need to. Contingency planning ensures you are prepared for the unexpected. If you have key personnel, which most businesses do, you must be well prepared.
Reliance on one person in times of trouble makes your business highly vulnerable. Having business continuity consultants come into your business and provide some oversight and process will be extremely valuable. The piece of mind this creates will support your overall business future.
Business Essentials can assist you in this key area by defining the most likely contingencies you may face and setting in place solutions that can be readily activated should crisis hit.
Protect yourself from the unthinkable with a business continuity plan
What happens if the owner of the business, or the controlling shareholder, suddenly dies? Or for health or family reasons decides to retire?
A recent study of 5,000 small businesses in Australia by Price Waterhouse and the Commonwealth Bank revealed that only 11% have a written, detailed plan for the management and ownership of the business in such circumstances.
Techniques are many and varied, and may include:
- Human resources policies to ensure management succession
- Insurance policies between the major shareholders insuring each other (so if one dies, another will have the funds to buy that stake in the company)
- Listing on the Stock Exchange to create a diverse share register allowing potential disposal of shares
- Employee share schemes
It is important for the implications of a sudden disruption to either the management or ownership of a business to be considered. As a starting point, every business plan should contain a continuity plan (or succession plan).
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