You cannot predict your future. But taking some risk on your planning you can be profitable. By developing your risk management properly you can reduce your business interruption. This is called contingency planning by which you can minimize bad effect in your trade. It’s a fact that you can’t predict future but by contingency planning you can secure your trade future.
In construction business contingency plan is very necessary. When owner faces some troubles or get interrupted in his normal process, then he comes with alternative plans to pull out his business from interruption quickly. Contingency planning is often use for risk management to avoid or minimize exceptional or unwanted incident. Suppose, you use one shipping company for supplying things and if it went bankrupt then your business process will stop. To avoid this situation you should use more than one shipping lines for your product supplying.
Consider Before Planning:
- Industrial strikes.
- Failures in power, telephones, internet, computers, gas.
- Bad debt and finances
- Safety and health
- Legal issues and insurances
- Dependence on key personnel / management
- Depend on supplies and limited supplier
- Depend on small customer or limited customer
- Applying new technology
- Repairs, maintenance and replacement of equipment
- Competition and opposition
- Accessibility of roads, footpath
- Government legislation, regulation
You have to be pessimist to anticipate the risk factor of your business. You have to be aware of all the risks that can harm your trade. Suppose, something bad happened to your main supplier or the shipping company went bankrupt or any major or minor accident at your work station. You have to think about your retail location, office, warehouse and people associated with your trade. If, for some reason, you don’t have this location anymore, then it would be a big trouble for business so you should always make a plan B. Maybe it is hard to think and arrange many things, but you should have everything in your mind to make good and effective contingency plan, especially if you are involved in construction business.
About the Author:
B & R Equipment Co.
3100 Keller Hicks Rd.
Fort Worth, TX 76244
This thing will help your business grow. You have to think about each risk factor and have to make alternative plans for it. Alternating strategy developing is called alleviating risk. If you make a plan for your safety then you can apply it if crisis comes. But you also have to plan how fast you can recover from it. For example, if any natural calamities take place then you can’t stop it, so you should always make insurance for your trade. Therefore plan B is very essential as it not only recovers you from bad situation but also fast forward your business.
You have to be optimist as a business owner to swipe it, when opportunity comes. You should also have plans, thereby you can deal with anything and if big client or huge contract or other opportunity comes in your way, you can utilize them. To get this kind of opportunity you need proper plan, because you have to face competition with other parties.