Day 11 – Contingency planning
Now, more than ever before, we understand that things can change in a matter of days. Life can go from normal to about as far from normal as it gets with very little notice. You’re fine one day, side-swiped by something unexpected the next. The Covid crisis has delivered a hard lesson, but in a business context, it’s a really good lesson to learn.
You might want to set aside a percentage of every paid invoice so you know you’ve got enough to pay your VAT when it comes due. You might want to build up a slush fund to help the business cope with emergencies better or make sure you can pay your income tax quickly, without pain. Think about the things that could have the worst impact on your business if they happen, and make contingency plans. If any of them do happen you’ll be confident and well-prepared rather than in a panic with no notion of how to go forwards.
There’s some useful insight from Lloyds Bank here: https://www.lloydsbank.com/business/resource-centre/business-guides/contingency-planning.html