Be Prepared!

The Boy Scout Motto is “Be Prepared”.  Whilst I never went to Scouts, from a business and personal perspective it makes sense.

Plan A is what we hope will happen – the best case scenario where our products and services are sought after, our marketing generates more leads than we imagined, we make wise investments (like buying Xero shares at $1 when first launched), and everything turns out amazeballs!

Plan B is the more likely scenario – we struggle along with a modicum of success.  Some ideas turn out pretty good while others fail dismally, but the wins outweigh the losses.  We earn more than the living wage and we accumulate sufficient capital to generate reasonable passive income.  We are relatively happy and comfortable.

Plan C is the fall back plan when it all goes wrong!  This includes an up to date will; a family trust that protects what we have accumulated through years of hard work, blood, sweat, and tears; a warm and dry home that we own; insurance in case bad stuff happens sooner than expected; a Kiwisaver account; and most importantly good health (mental and physical) and relationships (family and friends).

Plan D – is what happens when we don’t have Plans A, B or C. We won’t go there!

Q2’s “10 Hats” Business Recovery Plan is about hoping for the best but being prepared for the worst.  It considers practicalities, such as:

  • Ensuring your will is valid, up to date, and accessible
  • An on-line password protector and the master password available in an emergency
  • Cloud based technology allowing you to work remotely at a moment’s notice
  • Cyber security risks taken seriously and mitigated
  • Funds to cover at least 3-6 months business / personal emergency expenses
  • Business and personal insurances so if you die or have a critical illness you / your family / your business have enough resources to buy time and pay the bills
  • Robust legal contracts (shareholders agreements, relationship property agreements, customer / supplier contracts, leases, employee contracts etc)
  • Protected intellectual property (patents and trademarks etc)
  • Documented systems and processes
  • Real time and accurate accounting and financial information
  • A sound business plan, your team understand the strategy and know what is expected of them
  • Having trusted advisors on your team (accountant, lawyer, trustees, bankers etc.)

Being prepared also means you have personal protective equipment ready before a COVID-19 lock down, stored water and a disaster kit ready in case of a natural disaster, and other Boy Scout type preparations.

“Success is where preparation and opportunity meet.” Bobby Unser

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