When everything is going well with your business, it can be difficult to imagine things being any other way. However, the best possible thing you can do when things are going well is to prepare for when that may not be the case in the future. There are so many factors that can impact your business, some in your control, others that aren’t. So, if you can take precautions when everything is running smoothly, you will certainly benefit from it in the future! Now, let’s introduce you to the three main components you need to future proof your business.
Manage Risks
The first thing you need to do in order to future proof your business is to manage risks by completing a full risk assessment. This will differ massively depending on the type of business you have, but make sure to go through every section of your business, identify where there are any risks (everything from legal to reputational, operational, security, health or financial risks) and map them all out.
From here, you should go through and come up with a strategy to help manage these risks, whether that is investing in insurance, implementing the correct safety instructions or coming up with a plan if a risk is to arise that is completely unpredictable. This is an essential step to help future proof your business.
The Right Types of Insurance
Another thing you need to do is make sure you have the right types of insurance for your business. Again, this will differ massively, so it would be worth working with a broker in order to make sure you have the right cover. From public liability insurance to professional indemnity, credit insurance, key person insurance and business contents insurance, there are so many types of cover out there that can protect your business in every eventuality. Although it may seem like an investment upfront, it can save your business one day, so it is an investment that is definitely worth making.
A Succession Plan
Next up, we have a succession plan, another key component which is really important to help you future proof your business. You may feel like you have a really solid team, but you never know what can change at any moment. So, you need to have a succession plan in place for anyone who is absolutely essential for your business and that cannot easily be replaced. This might be having a recruiter on board who specialises in your area and can find someone highly experienced for the role, or it may be having a training plan in place for someone already at the company who can gradually work towards filling the role.
We would always advise that all of your vital employees sign a contract with a 3 to 6 month notice period, as this will give you enough time to replace them if necessary. This may require a pay rise or bonus in order to encourage them to do so, but this will definitely be worth it if you do one day find yourself a vital member of the team.
You should also invest in key person insurance which we have touched on briefly, which is insurance that protects your business from any losses that come as a result of a key member of staff becoming ill, injured or passing away. As well as the owners, you should insure all of your key members to protect your business if the worst should happen. In this eventuality, the last thing you will want is to be worrying about the losses incurred to the business, so you can simply focus on what is important at the time.
Final Thoughts
As we said, you may be in a position where your business is thriving which is fantastic, but there is truly no better time to invest in your business’s future than now! Put some time and budget aside to future proof your business now and it can literally save it in the future.
