You need contingency plans to succeed in your first year of business. A contingency plan will help you calmly handle any unexpected surprises that come your way. Even if you do excellent research and plan diligently, you will always find good and bad surprises when starting a business.
Your contingency plan should include a list of anything, good or bad, that would affect your business if it happened. Think about the following items when creating a thorough contingency plan:
1. Consider your chosen niche. If your niche dries out, you will need a contingency plan to support your business.
2. If you have problems finding people to work for you within the labor market, you will need to have a contingency plan to help you get work done.
3. What is your comfort level with ASP software? If clients don’t need your specific services, you should make the ability to get into other service markets part of your contingency plan.
4. Alliances between competitors should be on your radar at all times and you should have a clear contingency plan if there are mergers or other partnerships that happen within your industry that might threaten your success.
A really complete contingency plan will have 15-20 possibilities on it that might affect your profitability. Items on your contingency plan will be forces beyond your control that require your reaction. Make sure your contingency plan includes just one year of time, but revise it often to stay in business.
Blogged By: Computer Consulting 101