Many entrepreneurs think that if they come up with a viable business plan when they are starting out, that is all the looking ahead they have to do. However, one key to success with a small business is to expect the unexpected. It is unusual when everything goes as planned. More commonly, all sorts of surprises come your way once you embark on your business venture. Here are some possibilities to factor into your contingency plans.
Overwhelming Success
Of course you hope to succeed with your small business start-up, but if you are like most budding entrepreneurs, your expectations begin modestly. However, sometimes businesses take off suddenly and grow far beyond their founders’ wildest projections. If this happens, you need to know what to do. When the orders start pouring in, do not immediately jump into frenetic activity to keep up. Instead, take the time to plan your strategy. You need to estimate how much product demand you are looking at and how it can be supplied. You need working capital to be able to fill those orders. Contact your bank for a line of credit and your suppliers to ensure they can meet the demand. If you need help, instead of hiring full-time employees find freelancers or independent contractors to fill the need, in case the boom does not last. Expand your distribution network by working with manufacturer’s representatives. Communicate with customers about inevitable delays. Use some of the windfall to invest in the future of your company.
Emergencies
All entrepreneurs hope that things go smoothly, but the fact is that disasters abound in the business world. You need to assess where your business is vulnerable and what to do if disaster strikes. Possible threats include natural disasters such as tornadoes and earthquakes, accidents such as fires, equipment malfunction, cyber attack and theft. Prioritize the risks according to possibility of occurrence and impact on your business, and then formulate plans on how to deal with each one. One of the most important steps to take in disaster preparation is to have top-quality business insurance resource. This allows you to get back to business as soon as the crisis is averted. Getting up and running again as soon as you can is a key to your company’s continued prosperity. Find out more about insurance for small businesses at the insureon site.
A Crowded Market
You may have come up with a dynamic idea for a cutting-edge product or service, but it is possible that other entrepreneurs saw the market opening when you did and started up similar businesses of their own. You need to know how to rise above the pack when the market seems crowded. One solution is to personalize your customers’ experience. Social media is a great help with this, as it creates an opportunity to expand and go viral from an initial experience of intimacy, credibility and reliability. Another possibility is to redefine the product you are offering. Instead of following current trends, create your own. Additionally, you can specialize in one aspect of a crowded market or industry. Focus on a core group of customers with particular needs, and find a way to meet those needs better than anyone else.
A Sudden Halt in Cash Flow
Your business might start off with a bang and generate a steady, solid flow of income, but do not assume that the cash flow will continue indefinitely. Many circumstances arise that might temporarily dry up the market. When it happens to your business, you need to be able to cope. No matter what happens, you need to maintain a reasonable balance of cash at all times to be able to handle operational expenses and bills. If you do not have the expertise to do an accurate cash flow analysis, hire a professional who can.
