Statistics show that nine out of ten businesses fail within the first five years of opening their doors. With the odds stacked against you, one of the best ways to become successful is preparing for the worst case scenario. By preparing for the worst case scenario, you are being proactive in preventing this scenario from ever happening. Here are three ways you can prepare for the worst case scenario:
Create Checks and Balances
Checks and balances is a coined term for a procedure that prevents people from stealing, cheating, or making mistakes by separating the power of authority to make a single decision. As an entrepreneur one of the best ways to create a check and balance system is by finding a business mentor. By talking your decision through with a business mentor they can help you; paint a clearer picture, avoid making careless mistakes, and visualize possible alternatives.
Create a Business Plan that Outlines Possible Delays and Setbacks
A well written business plan is a guide to success. One specific area a business plan should focus on is possible delays and setbacks that could affect your business from becoming successful. This could be anything from running out of cash, in-effective marketing, hiring the wrong person, etc. Once you have identified the setback write down a solution. This way if the setback happens, you are prepared.
Analyze your Proposed Solutions to the Problems
Even though a solution might solve a setback, is it the right solution? As an entrepreneur there will be times when you run into a problem and have to think on your feet to find a solution. Even though the solution will fix the problem, it might just be a quick fix as the underlying problem was not addressed. Therefore, to ensure business problems are solved effectively we must analyze our solutions. How we do this is by creating checks and balances.
Now it’s your turn. What are some other ways to prepare for the worst case scenario? Leave your comments down below.
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