Oftentimes, we discuss what should be in your business plan but let’s talk about what’s not there. For many of us, we don’t plan for the “oops” in life. Those unforeseen occurrences like losing loyal team member that’s been with you for over a decade, receiving a notice from your landlord that your lease will not be renewed and your business has 60 days to move, or losing the big deal you thought you had in the bag.
I thought about this topic because of an “oops” that occurred last week. The Washington DC area had a really, really bad windstorm and many suffered property damage including my office building. I began thinking that the owner of my building has insurance yet he didn’t really “plan” for this type of damage. No one really plans for it. The office manager didn’t plan to need a construction crew to come and fix the damage. Yet the plans always have monkey wrenches thrown them.
So I wanted to share a few tips on planning for the “oops” in our businesses.
Always leave time for the unexpected. Each week, we (entrepreneurs) have 40-80 hours to accomplish our goals. It’s always wise to set aside 25% of those hours, or 10-20 hours, for unplanned events. When I review my day (which is typically 10 hours), I always plan for 6 hours and then leave 4 hours open for unexpected phone calls, email messages, and emergencies.Have great insurance and review it annually. I often tell entrepreneurs that great businesses are like great football teams. You have offense, defense, and the coach. The CEO is the coach. Offense scores or makes revenues, for the team. Defense protects the team from issues and challenges including the IRS, SEC, and other governing bodies. Insurance is defense within our businesses. I suggest people focus 80% of their time on offense and 20% on defense. Remember…defense wins championships. Within your business plan, you should schedule defensive plays such as an annual insurance review.Put up a clock. Many years ago, I heard a podcast with an interviewee who said the best entrepreneurs are able to shake off bad news within 24 hours. Mishaps happen in life but a strong company always knows how to rebound quickly. It’s important to recognize that most of what’s written in your business plan will not happen but your reaction to it is what’s important.Find a coach, accountability partner, mentor, advisory board or entrepreneurial friend. During the 24 hours when you’re adjusting to the mishaps in business, I believe it’s important to have someone who understands the entrepreneur’s dilemma, can offer guidance to and will encourage you to continue with your journey. Great business plans include great accountability teams for leadership.
Money, talent, and success follow great leaders and management teams. A great management team knows that the unpredictable always happens and they plan for it. It’s important to grind with purpose while always expecting the unexpected.
Cheree Warrick is a business plan writer that helps entrepreneurs receive bank loans, angel investment, government certifications, immigrant visas, and more. Contact her at wewritebusinessplans.com or call 703-934-4630.