Business Risk Planning – Are You Prepared for the Unexpected?

Let me share something that happened just last month – it’s the kind of story that keeps business owners awake at night.

One of my coaching clients, who runs a successful manufacturing business, arrived at work to find their bank account frozen.

No warning, no explanation – just no access to their money.

They couldn’t pay their staff, their suppliers were getting anxious, and their stress levels were through the roof.

But here’s where it gets interesting.

While their competitors might have crumbled, they were back up and running within 48 hours.

Why? Because we’d already put a solid backup plan in place during our business coaching sessions. Would you be ready if this happened to your business tomorrow?

In the Masterplan Programme, we tackle this exact challenge in Step 7, where we focus on building robust systems and processes.

It’s fascinating how many business owners initially think this step is just about operational efficiency – until they see how crucial it is for business survival.

Through working with my EC Masterplan clients, I’ve seen firsthand how proper preparation can mean the difference between a minor hiccup and a business-ending crisis.

Why Most Business Owners Aren’t Ready (And Why That Needs to Change)

You know what I hear all the time in my coaching sessions? “It’ll never happen to me.” I get it – we’re all optimists at heart.

We have to be to run our own businesses. But let me tell you what I’ve seen just in the past year:

• A client’s bank froze their accounts during a routine review
• An accountant submitted VAT returns late, resulting in thousands in fines
• A business lost a key customer that represented half their revenue
• Three key staff members left within a week of each other
• A business partner passed away unexpectedly, leaving no succession plan

Every single one of these situations happened to real business owners, just like you.

And here’s the kicker – they all thought it would never happen to them too.

Understanding Your Business Vulnerabilities (Before They Understand You)

Through years of coaching business owners, I’ve identified four critical areas where most businesses are vulnerable.

Let’s dig into each one, and more importantly, let’s talk about what you can actually do about them.

Financial Stability: Your Business Backbone

Picture this: One of my clients was crushing it – great revenue, healthy profits, big contracts. Then their largest customer, representing 50% of their revenue, went bust. Overnight, their successful business was in crisis mode.

This is why we need to regularly check:

• Cash flow patterns (not just the balance, but the timing)
• Customer concentration (are you too dependent on too few clients?)
• Debt obligations (what if interest rates jump again?)
• Emergency fund status (could you survive three months of problems?)

I now make sure all my clients have what I call a “financial fire drill” – a clear plan for what to do if the money suddenly stops flowing.

Supply Chain: Your Hidden Weakness

This one’s fresh in my mind because it happened to a client just last week. They’d used the same supplier for 15 years – great relationship, great service, great prices. Then that supplier went into administration with no warning.

Here’s what you need to think about:

• How dependent are you on single suppliers?
• What’s your actual backup plan if they fail?
• How quickly can you switch to alternatives?
• Have you tested these alternatives recently?

One practice I’ve started with my clients is running regular “supplier failure simulations” – basically, pretending a key supplier has failed and working through the response plan.

Cybersecurity: The Modern Threat

Let me tell you a scary story. A client’s competitor was recently hit with ransomware. They thought they were “too small to be targeted.” Three weeks later, they were still offline, losing customers daily. In today’s digital age, cybersecurity isn’t optional – it’s as essential as having a lock on your door.

The basics should include:

• Regular security audits (when was your last one?)
• Strong password policies (and I mean actually enforced)
• Employee training (because most breaches start with human error)
• Professional IT support (not just your nephew who’s “good with computers”)

Operational Stability: Your Daily Shield

This is a success story. One of my clients documented all their processes as part of their business continuity planning.

They thought it was overkill until their operations manager suddenly left.

Instead of chaos, they had a smooth transition because everything was documented and systems were in place.

Key areas to consider:

• Staff roles and responsibilities (written down, not just in someone’s head)
• Equipment maintenance schedules (preventive, not reactive)
• IT infrastructure redundancy (what’s your backup for your backup?)
• Standard operating procedures (that actually get followed)

Creating Your Business Continuity Plan (That Actually Works)

Here’s where many business owners get stuck. They know they need a plan, but it feels overwhelming. Through my coaching experience, I’ve developed what I call the “4-Step Shield” approach:

1. Risk Assessment
   Start by identifying what could go wrong, specific to your business. Don’t just think about the obvious stuff – dig deeper.
2. Impact Analysis
   Understand exactly how each risk could affect your operations. Play it through like a chess game – if X happens, then Y and Z will follow.
3. Recovery Strategies
   Develop clear, practical steps to take when problems arise. These need to be simple enough to follow in a crisis.
4. Communication Protocols
   Know who needs to know what, and when. Create templates and scripts in advance – you won’t have time to write them during a crisis.

Taking Action Now (Because Tomorrow Might Be Too Late)

One of my clients recently told me something that stuck with me: “I used to think business continuity planning was just box-ticking. Now I realise it’s about business survival.” He said this after using his backup plan during a crisis, and it saved his business.

Think about it this way – you wouldn’t wait until your house is on fire to buy insurance.

So why wait for a business crisis before creating your backup plan?

Ready to Protect Your Business?

If you’re feeling uncertain about your business’s preparedness for the unexpected (and let’s be honest, most of us are), let’s talk about it.

Book a virtual coffee with me, and we’ll:

• Identify your specific business vulnerabilities
• Review your current backup plans
• Create a practical action plan to protect your business
• Ensure you’re ready for whatever comes your way

Best wishes,
Jamie

P.S. Remember, hope isn’t a strategy. Let’s make sure your business is properly protected before you need it to be.