If there is one thing that is certain about life, it is that it is uncertain. With this in mind, you should have a backup plan in case something goes wrong in any area of your life. Here are some examples of backup plans you should have.
If your business goes under
Having your own business can be tough but it is also very rewarding. One thing that we have discovered after seeing the economy dip and grow over the last decade or two has shown us that nothing is permanent in the business world. Strong businesses can tank overnight, investors can be spooked and pull funding, or even a tweet you made 10 years ago could come back to haunt you. Having multiple income streams can help cushion the blow if one of your businesses suddenly goes under. Never assume that your business is full proof as this is the biggest mistake that people make.
If you get sick
What would happen if you fell ill and couldn’t work anymore? If you are the main earner in your house, this can cause huge problems for the rest of the family. Having a backup plan when you are sick can help your family until you can get back to doing what you do best. We all know that even a couple of days away from work unexpectedly can have a devastating effect on your business. If you can, have a buffer backup that you can bounce off in the event that you need a couple of days to recover from the flu or stomach bug. It also pays to have a long term plan if you develop a chronic disease.
If you die
Nobody likes to think about dying but it is one of those things that will happen one day. Hopefully, it will happen in the distant future. It doesn’t really matter when it happens because there needs to be a plan in place. Having life insurance can help your loved one pay for your funeral and cover expenses that you leave behind. There is also the question of what will happen to your business. If you work for yourself and have no employees, there is a good chance that your family will shut it down. However, if you have employees, you need to think about how your death might affect them and their employment status.
If your family gets bigger
You never know when a baby will come along, and even the most organised people can find themselves with a new bundle of joy. Even women who have been sterilised can discover that they are pregnant. If you do find that you are pregnant unexpectedly, you should have a plan in place to help you decide the best course of action. It is easier to have this decision made in advance because it can help you to get organised quickly. The last thing you need is to be scrambling for baby things when you thought you were all done adding to your family.
A relationship breakdown
The relationships we have in our lives can have a huge impact on our lives, and if they break down we can be faced with a mess. It is common knowledge that divorce is messy and expensive, and if your business is worth something, the former love of your life might want a slice of it. If you get married before you started your business, you might find it hard to protect those assets. However, if your business is thriving before you get married, you might want to think about getting a prenuptial agreement. It might not be the nicest thing to discuss before you get married but it is important to protect yourself and your business.
Moving to a new country
There are many different reasons why you might want to relocate to the other side of the world, and hopefully, they are always good reasons. However, you do need to ask yourself if your business is suitable to move with you? In the case of digital nomads, they have the pleasure of being able to work anywhere in the world. But if you have a physical location that you work from, such as a beautician, would your business survive being moved halfway around the globe? In many cases, you might need to sell your existing business and set up a new one in your new location. It is also important to remember that you will need to research the requirements and tax laws in your new country.