Every startup founder knows the importance of planning for likely disruptions, but some potentials slip through the cracks. Preparing for unforeseen issues is crucial for long-term success, from technical failures to mass product returns.
Here are some of the key disruptions startup founders can’t afford to ignore.
1. Small technology failures
Planning for a major problem like a hard drive crash is easy, but you also need to plan for smaller failures, like software glitches, unexpected downtime, and other disruptions outside of your control. For example, you’ll be impacted if you rely on a specific software application to run your email marketing campaigns and it goes down.
Most of the time, small disruptions don’t last long, but having a contingency plan for the most important aspects of your business is still a good idea. Where email marketing is concerned, you’ll want to consider things like:
- If and how you’ll address the disruption with your subscribers. Delayed marketing emails won’t be a big deal, but if anyone tried to email you for support, they may not know their emails never went through.
- Verifying segmentation. When your email system comes back online, verify that everyone was segmented properly. You never know what features may have been impacted by the downtime.
- Having a plan to send test emails. Don’t blindly trust your provider’s announcement of uptime. Make it standard practice to send and receive test emails to ensure everything works properly.
All it can take is a small glitch in your system to throw your entire team off track. Having a plan is a must.
2. Power outages
While there’s nothing small about a power outage, it’s surprising how many startups fail to plan for this possibility. A power outage can be caused by anything from a tree falling on the power lines, a car accident that takes out a power pole, or even a failed transformer. It’s important to be prepared for more than just short-term power loss.
With the former causes, the power company typically resolves the situation on the same day. Transformer failures can take longer to resolve because the physical unit needs to be replaced. There is currently a transformer shortage, and there’s no guarantee a replacement will be easy.
Transformers can fail for many reasons, but age and poor craftsmanship are common. For instance, if a unit has been installed incorrectly, hasn’t been maintained, or was made poorly, it won’t take much for it to fail.
In the case of a prolonged power outage, your team may need to work from home while the situation is resolved. Planning ahead of time for this possibility will help you coordinate communication and collaboration remotely.
3. The need to migrate to a new platform
Whether it’s a web hosting account, email marketing software, or a CRM, migrating is tough. You must back up everything and move it to the new system. Often, this involves transferring files, settings, and data exported to .CSV files. And there’s no room for mistakes. If you forget to transfer something or your saved data is corrupted, that will be an issue.
Nobody ever plans to migrate to new platforms, but it’s worth creating a backup plan just in case this becomes your reality. With some applications, you’ll need to create a handful of individual exports to be able to import the data correctly. For instance, your current CRM application may allow you to export all of your data into one .CSV file, but your new application will require separate files for certain types of data.
4. Overspending
According to statistics, 90% of startups fail, and it’s often because they run out of money. There are only two ways to run out of money – overspending and not having enough to start. If you’re lucky enough to secure generous funding, keep a tight reign on your finances. Don’t fall into the trap of believing that you can overspend because everything will work out, and you’ll be fine.
Implementing a detailed budget, tracking finances to the penny, and prioritizing spending on essentials will help preserve your cash flow. At the very least, seek guidance from a financial advisor to learn cost-effective growth strategies.
5. Mass product returns or refund requests
There’s a possibility your customers may request refunds in large quantities. This usually happens when a product or service doesn’t meet customer expectations or is faulty. If this happens, it will be a big blow to your revenue, so preparing for the possibility is crucial. Having clear return policies and strong customer support will help mitigate the damage from this scenario.
Plan for the unexpected
Running a tech startup is challenging, but the impact of unexpected disruptions can be mitigated with careful planning and proactive planning.
Photo by Desola Lanre-Ologun on Unsplash
Kyle Lewis is a seasoned technology journalist with over a decade of experience covering the latest innovations and trends in the tech industry. With a deep passion for all things digital, he has built a reputation for delivering insightful analysis and thought-provoking commentary on everything from cutting-edge consumer electronics to groundbreaking enterprise solutions.
