Foreseeable but not Predictable
If you as a business owner do not have a plan for events that are foreseeable but not predictable, you will be hurt more than the business competing with you that has a plan for these contingencies. Failure to have a plan for contingent events could cost you or your loved ones the value you would expect to derive from your business.
Natural disaster events are foreseeable but not predictable. Fires, floods, and storms cause damage and harm. Those who are not prepared, often suffer greater damages and personal harm than those who were prepared. Those who do not evacuate or take other steps to reduce damages suffer greater consequences.
The business that sustains the least damage is the business that has a plan for the contingent event. For example, where an area has a 48-hour notice of flooding, the business that has a plan to move equipment to the high ground upon that warning and gets that done will do better than the business that has no such plan and loses equipment to flood waters because the move to high ground is not accomplished.
It is not just natural disasters that are foreseeable but not predictable. For the owners of a business, things that are foreseeable but not predictable include leaving business ownership because of death or becoming less active in the business because of disability. Just as it is wise to have a plan to save equipment from a flood, it is wise to have a plan to guarantee business value to an owner who becomes disabled or to the heirs of an owner who dies. Value can be guaranteed through planning and agreement among business owners.
You will not make the plan if it is not important to you now and you do not take immediate action to put a plan into place. If you do not have contingency planning in place right now, it is because you have not prioritized making the plan.
Why is it that the business owner with the flood-damaged equipment did not have a plan? That owner did not prioritize the plan and devote time to creating the plan. Things that are not urgent but are important are not attended to by poor business managers.
You will hear the question: “What are the chances something will happen?” This is a question about something that is foreseeable but not predictable. The answer to the question invites procrastination. The proper question: “How important is it that I not lose the value of my business interest?”
There is more information on the Business Transition Consulting site on how to begin now to make that important plan.