It is very easy to get comfortable as a business owner when things are going well, however, that is the best possible time to prepare your business for worst case scenarios. People often push this back and back as a priority, especially when you are juggling lots of different things, but all of your hard work can easily be reversed within seconds if you don’t prepare adequately.
So, make the time now to prioritise your business’ future and you will reap the benefits later down the line.
The first thing you need to do to protect your business is to create a succession plan, so that if anyone with a key role in the business were to leave, you have a plan in place to replace them without your business taking a hit. For example, if a senior manager who has worked with you for 10 years leaves the company, you are likely to feel quite a significant loss.
So, identify the key members of your team and create a plan for each of them. You can then also pass this responsibility down, so that each layer of your business has a plan in place should someone leave. This will probably involve planning someone to take the role internally and what their training will look like. Perhaps you have a look for recruiters who specialise in your industry and start building a relationship with them for the future, as this will benefit both of you.
Whilst you’re doing this, it would be worth doing reviews with your key employees, to make sure they are happy with what they are being paid, their path for progression and also their role in general.
Another thing that is essential for your business is having the right insurance cover. This will differ significantly depending on the nature of your business, so working with a broker who specialises in your industry is key. They will be able to advise on the cover that you need, they will be able to help you get the cover at the right price and they will also help you to deal with claims if they need to be made.
For example, if you deal with international trade, you might need whole turnover insurance to protect your business. Other businesses might need professional liability insurance, commercial property insurance or commercial auto insurance. This is why it is so important to work with a broker, as they will help you cover everything that needs to be covered for your business. Again, when everything is going well it often isn’t a priority to futureproof, but that’s why it's so important.
Our final tip to protect your business is to use some form of off-site data storage. If all of your data is stored internally on your computers and hard drives, and there is a power surge in the building that wipes the data, it could be an absolute disaster. So, make sure that all of your company data is backed up externally, ideally through an encrypted cloud. This will make sure that your business is protected should the worst happen, even if it is unlikely. Ideally you would naturally do this from the beginning of the business, but if you haven’t, now is the perfect time to transfer everything over.
