The Business Plan No One Writes (But Everyone Should)
The contingency plan your business actually needs to survive the bad days.
Published under The Operations Hat on HatStacked.com
Most people treat contingency planning like flossing. They know they should do it, they say they’ll get to it, and then one day they’re in the dentist’s chair, or in this case, explaining to customers why they can’t ship orders for two weeks.
Business owners love making plans for the good stuff: revenue goals, product launches, grand openings, hiring celebrations. But almost no one plans for the “Oh no” moments.
A contingency plan is not glamorous. There’s no ribbon-cutting ceremony for “What We’ll Do If the Wi-Fi Dies for Three Days.” But when life decides to toss a wrench into your operations, this plan can be the reason you survive.
Step 1: Figure Out What Could Actually Take You Down
Forget the vague “market changes” and “economic downturns.” We’re talking real, specific scenarios:
- Your best customer bails and takes 20% of your revenue with them.
- A supplier suddenly closes shop.
- Your accountant goes on an unplanned six-month trip to “find themselves.”
- A cyberattack locks you out of your own systems.
- A plumbing leak takes out your office and your server.
If this feels like doomscrolling for your business, good. The first step to surviving chaos is admitting chaos exists.
Related: What Small Business Owners Get Wrong About Compliance (And How to Get It Right)
Step 2: Rank Your “Oh No” List
Some disasters will hurt more and happen more often than others. Plot them out like this:
- High likelihood + High impact: These deserve the most attention.
- High likelihood + Low impact: Quick fixes are fine here.
- Low likelihood + High impact: Have a plan, even if it’s bare bones.
- Low likelihood + Low impact: Keep an eye on them, but don’t lose sleep.
The point is not to eliminate all risks, it’s to stop the big ones from knocking you flat.
Step 3: Decide Who Does What
When things hit the fan, you do not want your team standing around debating who should send the “We’re working on it” email. Assign responsibilities now:
- Who talks to customers?
- Who deals with vendors?
- Who secures data or inventory?
- Who manages the team if you’re not available?
Even if your “team” is three people and a very stressed goldfish, assigning roles prevents chaos from turning into full-on meltdown.
Step 4: Build Your Backups
Backups are the unsung heroes of contingency planning. They can be as simple as:
- Keeping a short list of alternate suppliers.
- Having cloud storage with version history for all critical files.
- Cross-training employees so no one is irreplaceable (in a job-function sense... you can still like them as a person).
- Maintaining a small emergency inventory stash.
Think of this step as building a parachute. You hope it stays folded in a closet, but you’ll be glad you packed it.
Step 5: Plan How You’ll Tell People
In a crisis, silence makes people assume the worst. Decide ahead of time:
- Which channels you’ll use to update customers and vendors.
- Who approves the messaging.
- How often you’ll send updates.
If you’re not saying anything, the rumor mill will. And it’s rarely flattering.
Step 6: Run a Drill (Without Freaking Everyone Out)
You don’t have to set fake fires or hide people’s laptops to simulate a disaster. Just run through scenarios:
- “It’s Monday morning, and our biggest supplier is gone. What do we do?”
- “The website is down, and we can’t process orders. What’s our first move?”
- “We have to close for a week due to a local emergency. How do we tell people?”
Even a tabletop exercise will reveal gaps you didn’t know existed.
Step 7: Update the Plan Before It Collects Dust
Your business changes every year. New staff, new products, new processes: all of that affects how you’d respond to trouble. Update your contingency plan at least once a year and after any big operational change.
Common Mistakes That Sink Contingency Plans
- Writing it once, never looking at it again: This is not fine wine. It doesn’t get better with age.
- Making it too long: If it takes an hour to find the “What to do if the server goes down” section, it’s already too late.
- Not telling your team it exists: You’d be amazed how many business owners write a contingency plan and keep it to themselves.
- Planning only for giant disasters: A small disruption during your busiest week can still cause big damage.
FAQ
Q: Isn’t this overkill for a small business?
A: Not unless you enjoy expensive surprises.
Q: How detailed should my plan be?
A: Detailed enough that someone could run your business for a week without you.
Q: Can’t I just get insurance?
A: Insurance is great for recouping money, but it doesn’t fix reputation damage or replace lost time.
Final Thought
A contingency plan isn’t about being paranoid, it’s about being ready. Bad days will come whether you plan for them or not. The difference is whether you’re scrambling in panic mode or calmly flipping to page two of your “We’ve Got This” playbook.
