Thomas, a small business owner, says, “planning is a waste of time!  Unexpected events occur and you just can’t prepare for them.”  Do we agree with Thomas’ position?  Or do we reframe the issue?  What would you tell Thomas? 

Well, here is what I’d tell Thomas:

Planning is an important activity for all business, regardless of size.   

While we hope for the best, we have to prepare for the worst. 

Despite the best possible planning, unexpected events occur.  Someone gets sick.  Cars breakdown.  The economy slows down.

We don’t know exactly what events will occur unexpectedly.  We can know deal with this though. 

We can think about the business consequences of  the unexpected event and have a plan to deal with the business consequences.  Estimates need to factor in the business risks like scope changes, business issues, cost overruns, and more complexity than expected.  Contingency plans help manage with these risks. 

The future contains unknowns.  Still, you can plan for the results that can be reasonably anticipated though.  What are the results that you can plan for?   

1. Cost overruns
2. Missed timelines
3. Revenue shortfalls
4. Changes in customer needs
5. Delays in obtaining information

If you have plans to deal with these five contingencies, you are prepared for many situations that may arise. 

Filed by Coleen Davis at 5:06 am under Business Tips, Planning Tips, Solving Problems