The Rules of Management, 4th Edition

RULE 3

Plan for the worst

Sorry if this is depressing, but somehow things never go according to plan. Unless, of course, you’ve planned for the worst. If you know how to weather tough conditions, you’ll cope far better when they happen along. Which they will.

I’ve seen so many businesses fold because the owners had no Plan B for if it took longer than they thought to become profitable (which it always does, by the way), or if a major customer went bust, or if the economy hit recession. I knew one man who spent years building up a really strong business, most of whose clients were in the banking and building industries – both of which tanked at the same time and took him out too. It was heartbreaking to see.

Lots of businesses go under during ...