How to Create a Contingency Plan for Your Small Business

Picture this: You log on to start a productive work week. You set up your to-do list, check your inbox, sip your coffee, and feel ready to tackle whatever’s on this week’s agenda. Then, you get a Slack message from a team member: “Have a second to chat?” 

They’re leaving, and now you’re panicking. How will you manage everything in their absence, train a replacement, and keep things running smoothly so you can still give your best work to clients and customers?

Sound like your worst nightmare? You need a contingency plan for your small business. 

Why you need a contingency plan for your small business

Everyone on your team should be replaceable (yes, even you). Not because you want to replace them, but because life happens. And when it does, it pays to be prepared.

These situations could include:

• Family emergencies
• Travel disruptions
• Power outages
• Team members on vacation
• Temporary leaves of absence (like maternity leave)
• Team members leaving
• Team members shifting roles internally
• And about 8,000 other things

Think about the last time you took a vacation without checking your phone constantly. Do your team members feel obligated to do the same? That’s what this process helps you avoid! You give everyone space to deal with personal emergencies or time off without distractions. 

It also helps you from having one-too-many “oh shit” moments when shit hits the fan. Just sayin’!

How to start documenting your contingency plan

So, how do you document your workflows and build a contingency plan? 

The short version? Write everything down. Document everything so no stone is left unturned. It may sound tedious, but trust me, it will help. 

Want the long version? Keep reading to find out! 

Identify Key Procedures

Start by identifying the procedures that make your business go ‘round. What do you need to do your best work, as a team? For each individual? What’s the most critical part of your operations? 

This could include daily workflows, review processes, communication protocols, or simple task organization.

Involve Your Team 

Teamwork makes the dream work, right? So start involving your team in the documentation process! They’re the ones who are working on these tasks day in and day out, so their insight and knowledge are critical. It’s usually best for them to be the ones creating the SOPs and documentation for their assigned tasks, because they know it better than anyone!

They can also identify gaps that you may miss when doing it solo. 

Keep it Simple

Yes, I am fully aware that this whole documentation thing doesn’t sound simple at all. But once you get into it, you’ll find that it’s just a matter of recording everything you’re already doing. 

Aim to document just three to five processes per week, max. This helps break the process down into smaller chunks so you feel the progress you’re making with it.

However, there is such a thing as overcomplicating your contingency plans. Take out the fluff, and keep it simple enough that if you were looking at this for the first time ever, you could follow along.

Utilize Technology

Technology is your friend! Start using the software available to you to help lighten the load. You don’t even have to pay for most of what’s out there. A lot of softwares offer free plans for basic subscriptions!

So really, what do you have to lose in trying it out? 

Need recommendations on where to start? Tango is a great place to document all your procedures and even lets you organize them into folders. We love to see it.

Contingency plan basics: 3 things to ALWAYS include

So, what should these contingency plans and procedures look like? That all depends on what you’re documenting, but here are a few basics to help you get started!

Onboarding as people transition in and out of roles

A well-documented onboarding process is essential for bringing on new hires efficiently. It should include detailed instructions on their roles, responsibilities, and how to navigate your company’s systems and culture. 

This will help reduce the learning curve and get new hires on their feet as soon as possible!

Software training

Every business uses software and tools differently. Don’t forget to document how it’s done! 

For example, you might use Asana for project management. While new hires might be familiar with Asana, they need to understand how your business uses it specifically. What do your project bases look like? How do you set up and organize tasks? Do you communicate directly in Asana? Or is there another tool you use? 

That’s just one example, but the same process applies no matter what your tech stack looks like!

Don’t Forget the SOPs!

Having SOPs, even for the little tasks, keeps everyone in the loop. It also means that you won’t have to call someone when they’re out of the office to ask unnecessary questions. Or worry that new hires have the resources they need. 

Basically, they help you respect people’s work/life boundaries because you know exactly what to do in their absence!

SOPs in your contingency plan should cover job functions, but also how to communicate internally, with clients and customers, etc. 

Need help creating your contingency plan?

The main thing I want you to get out of this is to be prepared. If one of your team members were to quit tomorrow, or you had to step out of the office, could your biz keep on trucking? 

If the answer is no, then it’s time to create that contingency plan! Your future self, and your business, will thank you for it. 

Want a little guidance and support along the way? Let’s talk! I would love to help you out. 

Learn more about working with me as your ops manager here!