In today’s volatile economy, many companies are making some very difficult decisions in order to stay competitive and avoid going out of business. The housing market nationwide has impacted a huge number of builders, subcontractors, building suppliers, landscapers and many others, resulting in layoffs. As organizations attempt to resize themselves to match the decrease in business volume, the number of layoffs is expected to increase.
Contingency planning is a critical strategy that every organization should employ on an ongoing basis to be better prepared in the event of unforeseen business or economic changes. Contingency planning is an exercise in looking at the “what if’s” that may occur. Examples of contingency planning in Nevada include the ongoing drought and its long-term impact. Additionally, the real estate market is expected to remain depressed and there is always the possibility of another terrorist attack.
Good contingency planning takes a long look at all of those situations and more as part of the process. The challenge is to identify the impact of those events and identify planning in the event they might occur. The U.S. military has always tried to anticipate a wide range of events that might occur and determine how those situations could be addressed. The hope is that these events never occur but it is better to be proactive in the process to help guarantee a better response as opposed to being reactive.
As Nevada’s population vastly increases, we will continue to see more and more organizations recognize Nevada as a great place to do business. Growth increases competition. Before the population of Nevada hit one million people, there were more mom and pop businesses meeting the needs of Nevadans. Once the one million-population number was reached, Las Vegas appeared on the radar of many national chains as a good place to open a business and the big box retailers started to appear everywhere. The impact on local businesses was they had to work harder to recruit and retain their regular customers and their employees.
The morale is that staying successful in business should not be taken for granted. Good contingency planning is imperative and must be an ongoing process.
