Most of those in charge of leading a startup have a clear understanding that any entrepreneurial endeavor requires a great deal of hard work to overcome the many obstacles that exist on the way to achieving even a modest level of business success. Even so, many entrepreneurs find themselves somewhat unprepared for events or circumstances occurring beyond their control, which is why Luigi Wewege and other finance experts have espoused the importance of properly preparing for a wide range of occurrences in order to ensure a long and prosperous entrepreneurial career.There are a number of questions every entrepreneur must ask in order to ensure they are adequately prepared to deal with even the most unlikely of events, particularly during a startup’s formative years in which it is still trying to establish a foothold in the market. Business leaders have to consider how they will react if the supplier of a critical component chooses to suddenly raise its rates or if business partners fail to live up to their contractually agreed upon obligations.
Without contingency plans in place, any entrepreneurial endeavor will be left to do nothing more than hope that these unpredictable circumstances do not come to fruition. It should be plainly evident that merely hoping to avoid an event or circumstance is a recipe for disaster, so entrepreneurs who are serious about the future of their company should make the extra effort required to create detailed contingency plans for dealing with the unlikely events that could lead to devastating consequences if overlooked.