A contingency plan is a plan devised for an outcome other than in the expected plan. It is often used for risk management when an exceptional risk that, though unlikely, would have catastrophic consequences. Furthermore, there are also some plans to develop our business back to normal. Firstly, we must aim or main goal to maintains business operations, which is, we have to minimum level of service and functionality. Secondly, we have to keep the plan simple.
We have to know what specifically will cause us to implement the contingency plan.Next, we have to manage our risk. We got to look for opportunities to reduce risk, wherever possible. This will help to reduce, or even eliminate, the need of full contingency plans in certain areas. Besides, identify operational inefficiencies which are, provide a standard to document our planning process and find opportunities for performance improvement.
Well, here is some contingency plan to do if our business plan fail, one of the plan is to reserve some amount of money from the loan we made before, that is about RM 100,000.Moreover, we also willing to sell one of the delivery van that our company owned to settle some debt. Other than that, we decide to do business by using our delivery van and minimize our products, at the same time we sell it at very low price and make sure we still have profit even though little until our business’ condition back to normal. We decide to open a stall outside the Sunway University College to boost our business performance.