How To Make A Contingency Plan For Your Business

You've worked hard to establish a thriving online business, but what happens to it if suddenly you are not there to manage it? A sudden illness, injury or worse yet death could leave your company stranded. Learn how to protect your investment with a Contingency Plan.

So you've built a successful Internet-based home business. The revenues are rolling in and you are reaping the rewards. Have you considered what would happen to your business if you were suddenly not able to take care of it? What about vital information that your business depends on and others are not privy to? This is where a Contingency Plan comes into play.

A Contingency Plan assures that important assets and vital information within your business is not inadvertently disposed of in your absence. This would require you having to clean up a confusing mess when you return or worse yet, you may need to start all over.

Some websites require a lot of management, while others, such as Adsense sites, would be able to produce income without any management at all. So before writing a contingency plan consider whether the site should be sold or maintained in the event that you can not. Once you have decided that, then you may begin writing your Contingency Plan.

A Contingency Plan for a web-based business will require some work on your part, but will eliminate confusion and loss in the end. Writing the plan should cover some basic points. Take some time and begin writing one section at a time for each of the following categories:

Start by Creating a Business Profile ~ Take some time to sit down and describe your online business. Do this by highlighting key elements that have led to its success and then explain how these elements must be maintained in your absence in order to see continued growth and sustainability of your company. The amount of detail that you provide will essentially make it easier for the person that takes over and runs your business while you are absent and will allow them to more likely maintain the level of activity and viability that you have worked so hard to establish.

Now Write A Business History ~ Write a historical account of all the primary assets of your business. For instance, start with your initial website registration and then work your way up to today. This information is necessary in case there is a dispute about the ownership of the website. If your website was purchased from a previous owner(s) then you'll want to have a lawyer put together a Chain-of-Title document that traces the website back to the original owner and follows up to your ownership. This document would require that each previous owner acknowledge their previous ownership and state that they legally conveyed the property and then it would provide their signature as proof. You should attach this document to any documents that show to proof of payment by you.

Next, Make a Record of Your Domain Registration ~ Domain registration information should be recorded with the place of registration and all essential information for accessing the domain control panel. You should include detailed explanation as to why a person should maintain this registration and how this should be carried out.

Don't Forget the Hosting Information ~ If anyone should have to take over your business in your absence, they will also need to know where the domain is hosted and how to access the control panel. Write in detail how and when this is to be paid for and the importance of doing so. In this category be sure to describe your system for content management and how you use that in maintaining the site.

Create a Detailed Revenue Model ~ A revenue model involves describing the various income streams within your business. Include such revenue-generating areas such as: Adsense accounts, affiliate partnerships, merchant account services, and advertiser lists. Be sure to include information about who your shopping cart provider is and your suppliers and fulfillment services. Explain in detail how to maintain these income streams for the top income and also how to manipulate them to obtain a lower effort income stream.

Establish the Value of Your Website ~ Your website is your asset and you should not only estimate its value, but also relate how it should be dissolved. If you have someone in mind, suggest that person or suggest an appropriate person(s) that will provide a legitimate appraisal in the event that such direction is taken.

Intellectual Property Inventory ~ Intellectual property includes all your assets and liabilities. Simply describe all property of value that may be licensed to others or has a potential to become income. Include any obligations or limitations that you may have for intellectual property (software, articles, images) for which you own a license.

Relationship Inventory ~ For a relationship inventory simply make a list of full names, titles, and companies of all the people that you deal with and that are involved in your business. A good place to start is with employees and business partners. Next, work your way down by listing major contractors or suppliers and associates that may be able to provide essential information or solid advice about the business. This list should also include your attorney, accountant, insurance agent(s) and the names of suggested persons that could be hired to take on particular duties within the business.

Once you have completed all of the above categories and you have a Contingency Plan in hand, you may want to bring together those that are most important to you, those that will take over some of the tasks outlined in the plan, and have them read the document. Encourage them to ask questions and make suggestions. What is it that they don't understand? What information did you forget? Then take the time to add or clarify information.

Lastly, don't just fold up this document and put it away or store it on your PC. You will need to add, change, and eliminate information on a continual basis to keep the document up-to-date. Also, give a copy of it to a trusted person and place a copy of (always updated) your will and other pertinent papers. Make a point to make changes and updates when there is something significant to record. Or schedule to look it over at least once a year and revise as needed.

A Contingency Plan will save massive frustration and money in the event that something happens to you and will assure that your business is cared for and continues on in your absence.