Creating a Plan B

plan bCreating a Plan B?

While it’s not fun to think about what could go wrong, it helps to have a Plan B. As you consider the possibilities, here are some items to keep in mind:

  • What can you cut? Look at your budget. While you don’t necessarily need to trim the fat right now, it’s a good idea to consider what you can do if you need to start pinching pennies later. Identify the first items that need to be cut from your budget, so you know what has to go when you run into trouble.
  • How big is your emergency fund? Consider your emergency fund. Is it large enough to support you as you try to make your business venture work, or as you look for a new job? Can your emergency fund help you meet your deductible payments in the event of a medical catastrophe?
  • What skills do you have? Complete a skills inventory. Look at your skills and knowledge, and think about how you can apply it to different career settings. In many cases, it makes sense to look at how your skills would translate to a different career field. Don’t assume that you have to keep doing the same thing over and over again.
  • How divorced is your income? Don’t forget about your income diversity. Consider developing other sources of revenue so that you aren’t in complete trouble if one revenue stream is significantly reduced.

You need to know that you have options to fall back on if something goes wrong. It makes sense to think about what’s next, and whether you have the resources to meet it.

More on Troubles

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About chisoaustin

Wouldn't it be fair enough if I download food with my mobile phone.

Posted on August 19, 2013, in Business, Business ideas, Business owners, Entrepreneur, Entrepreneurship, start your business and tagged , . Bookmark the permalink. 2 Comments.

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