Prepare for a Worst Case Scenario

They say in business that preparation is everything - but are you prepared for a worst case scenario? Given the current economic uncertainty, it pays to be ready for anything. As part of your planning process right now, consider how you would make principle-based decisions for the business, rather than just changing or stopping one thing. A possible framework for worst case scenario business planning is as follows. Firstly, start with a big, scary hypothesis and a set of worst assumptions. For example, a possible hypothesis could be that during the crisis, your revenues go down by 100% for 3 months at the peak of the pandemic, and by 50% for a further business quarter. This might mean that it will take the business a full 12 months to recover and return to where it was at the start of the crisis. Once such a hypothesis has been taken into account, it is possible to manage the business in the most effective way possible. Once you have planned for a worst case scenario, you are ready for anything.