Why Your Business Needs a Contingency Plan

When a key client walks away, your best employee resigns unexpectedly, or a cyberattack shuts down your systems — what is your Plan B?

For many small and scaling businesses, the honest answer is: there is not one.

That is not a failing. It is a common symptom of running a business in survival mode, where the day-to-day demands steal all the attention. But in a world where market conditions change overnight, and a single disruption can derail momentum, a well-crafted contingency plan is not a luxury,  it is a lifeline.

Let us explore why.

It Is Not Just Big Corporates That Need a Plan

Contingency planning sounds like something reserved for blue-chip firms with corporate risk officers. But in truth, it matters more for smaller businesses because the impact of disruption is often felt faster, deeper, and with fewer resources to recover.

Contingency planning is not about predicting the future. It is about giving yourself options so that if something does go wrong, you can act quickly and calmly, rather than reactively and emotionally.

What Could Go Wrong? (Spoiler: More Than You Think)

Let us be honest. Business life is unpredictable. No amount of optimism replaces preparation. The kinds of things that could throw your business off course include:

• Loss of a key client: This could lead to a significant drop in revenue and potentially trigger a cash flow crisis, affecting the business’s financial stability.
• Departure of key staff: The business may suffer from a loss of critical knowledge and experience, leading to service interruptions and reduced efficiency.
• Supply chain breakdown:  Disruptions in the supply chain can cause missed deadlines and damage the company’s reputation with clients and partners.
• HMRC investigations or compliance delays:  These can result in stress for management, financial penalties, and reputational harm, especially if issues become public.
• Cyber attacks or data loss: Such incidents could shut down business operations, introduce legal risks, and erode customer trust due to compromised data.
• Premises damage (e.g., flood, fire):  Physical damage to business premises can halt operations and lead to complex and time-consuming insurance claims.
• Illness or incapacity of business owner: If the owner becomes unable to lead, it may create a leadership vacuum and stall strategic planning and decision-making.

Many SMEs carry these risks unknowingly — or assume “we will deal with it if it happens.” That thinking can be costly.

The 3 Scenarios Your Plan Should Always Cover

We recommend all business owners start by planning for these three categories:

1. People Risks

Who are your linchpins? Who holds the keys to client relationships, payroll, or cloud systems? Think about:

• What happens if they leave suddenly?
• Do you have process documentation or cross-training in place?
• Could someone step in tomorrow if needed?

Pro tip: Keep a shared, secure folder of key contacts, passwords (via a tool like Keeper), and how-to guides for major tasks.

2. Cash Flow & Client Risks

If a large customer defaults or cancels a contract, how long could your business keep going? Could you cover payroll and overheads for three months?

• Keep a rolling 90-day cash flow forecast.
• Build a small emergency fund.
• Consider debtor insurance for large accounts.

We can help you model worst-case scenarios and strengthen your buffers.

3. Tech & Operational Risks

Cybersecurity, system failures, supply chain bottlenecks — they are often invisible until they hit.

• Do you have secure data backups?
• Are supplier agreements watertight?
• What manual workarounds could keep operations running?

Wright Vigar Supports You Beyond the Spreadsheet

At Wright Vigar, we do more than file your accounts and submit VAT returns. We act as long-term partners in your growth and that includes helping you build resilience.

Whether it is a cash flow model, a business continuity review, or succession planning if something happens to you as the founder, we bring clarity and strategy when the unexpected hits. Our advice is practical, human, and proactive.

Ready to Create Your Safety Net?

If you want to start with a conversation about risks, resilience, or simply cash flow forecasting we are here. Wright Vigar’s advisors are experts in business continuity planning for ambitious businesses just like yours.