Fatal Distraction
As a small business owner, you’re intimately connected with the daily survival of your business. You make the decisions, you write the checks, your focus is the driving force behind your success. It can be wonderful having your life so tightly interwoven with your business. But what if some important life event took you either physically or mentally out of the game for a while? Would your business survive?
We’re all told that we should have an emergency plan for our homes in case disaster strikes; a supply of food, water, batteries and cash, a planned fire escape route, a place to meet in case communication lines are down. We take it for granted that we must prepare for the unexpected.
Then we go to work and pretend that nothing ever would, or could, interfere with our business. The truth is, for small business, every event that affects the owner could prove to be a fatal distraction for the business.
I’ve seen several first-hand examples recently:
You’re a one-person pet sitting business and you’re diagnosed with cancer. What’s left of your business when you finish multiple surgeries and six months of chemo?
You’re a sales rep and your mother becomes ill and dies. Understandably, your focus switches from work to family – but all your clients see is that you aren’t returning calls. How will your clients know you aren’t just ignoring them?
You’re a craft business owner, making your living at weekly art fairs and you end up on crutches all summer. How do you reach your customers to tell them you’ll be back, and how do you make up for losing your entire peak season?
You’re a business owner who juggles everything and never delegates. You keep everything “in your head”. Your personal life takes a turn for the worse. How will you keep all those balls you have in the air from crashing to the ground? Who can step in and handle things until you are able to get your mind back on your work?
How will your business function if you’re in the hospital, lose a family member, have a baby, need to care for a sick relative or get a divorce? Every personal crisis, every illness or injury, every major life event, has the potential to topple all that you have built - unless you take time to develop an emergency plan before things spiral out of control. You need a backup plan – and money set aside to keep your business alive during any temporary slow-down or shut-down.
Some things to consider for your emergency plan:
- Could your business survive if you were injured? If you’re renting a storefront or office, could your business income cover the rent if you’re not able to handle your usual workload for a while? Could you afford to hire a temporary replacement to handle your work? Find out what you can insure and set up and emergency fund for the rest.
- How would you keep from losing your client base? What would you tell your clients if their goods or services disappeared for a while? Figure out what you might do to cushion that blow.
- Who would pay bills and handle payroll if you are not able to? Who could handle deciding what to do in the event that the bills and payroll can’t be paid? Make sure someone else has the ability to access your business funds in an emergency and the authority to make whatever financial decisions are necessary.
- Could you run your business long-distance if you need to? Make sure you can access your calls, your e-mail and your mail – or find someone who can if you aren’t able. Business owners who don’t travel for business often forget this important step, but what if you need to travel for a family emergency?
- If you have employees, is there a clear chain of command that would allow one of your employees to step in? Someone else should have the access and authority to carry out your emergency plan, and you’ll have to clearly define, in advance, when they would be allowed or expected to step in.
- Is your communication pipeline in place? Could you quickly inform all your clients, employees and vendors of an emergency situation? Have e-mail or phone lists prepared in advance. Keep the people who are vital to your business survival in the loop and they’re more likely to still be there when the dust clears.
- Most important of all, accept your own limitations. As the owner of a small business, every personal crisis affecting you also affects your business. If you are not able to mentally focus on your work, or physically able and available to do your work, have someone ready to pitch in to help you stay on track.
We all need a little help now and then. Don’t add to your woes by letting your business suffer while you are piecing your life back together. Take the time to put together an emergency plan now.
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