I used to sit on the board of a nonprofit that raised most of its money from an annual fund-raising drive.
“What if you lost that revenue and fund-raising no longer worked?” I once asked.
“Oh, you’re being silly, Eric,” they told me. “That has worked for decades and it’s thriving. It has even worked well in past down economies. “
“Humor me, though. Is there a new way we can generate revenue, so all our eggs are not in one basket?”
As the discussion continued, I drove the point home in my usual persistent manner until they agreed to develop a new form of revenue. This new revenue stream did not replace the fund-raisers, but it increased the income of the organization substantially.
A few years later I played the “what if game” again, because we had not found a way to replace 100 percent of the fund-raising revenue if it were lost. This time they sloughed off my suggestions.
Fast-forward to today. The newer form of revenue has almost dried up and the fund-raising environment is more difficult than ever. The scenario that could never happen has happened.
When I ran a tech company, I learned to examine points of failure. If X breaks down, what backup do you have? I learned it is critical to never assume that things won’t change, and that every business needs to examine every point of failure.
Is it absurd to believe that radio advertising will never dry up? It’s always been there and, though it has dipped, it will come back. Right? Can you invent a few new ways to generate revenue if ad revenue dried up? Can you implement today those things that not only will strengthen your business but will act as insurance if your revenue goes away?
“What if you lost that revenue and fund-raising no longer worked?” I once asked.
“Oh, you’re being silly, Eric,” they told me. “That has worked for decades and it’s thriving. It has even worked well in past down economies. “
“Humor me, though. Is there a new way we can generate revenue, so all our eggs are not in one basket?”
As the discussion continued, I drove the point home in my usual persistent manner until they agreed to develop a new form of revenue. This new revenue stream did not replace the fund-raisers, but it increased the income of the organization substantially.
A few years later I played the “what if game” again, because we had not found a way to replace 100 percent of the fund-raising revenue if it were lost. This time they sloughed off my suggestions.
Fast-forward to today. The newer form of revenue has almost dried up and the fund-raising environment is more difficult than ever. The scenario that could never happen has happened.
When I ran a tech company, I learned to examine points of failure. If X breaks down, what backup do you have? I learned it is critical to never assume that things won’t change, and that every business needs to examine every point of failure.
Is it absurd to believe that radio advertising will never dry up? It’s always been there and, though it has dipped, it will come back. Right? Can you invent a few new ways to generate revenue if ad revenue dried up? Can you implement today those things that not only will strengthen your business but will act as insurance if your revenue goes away?
Have you examined the WHAT IFs in your business? What if may seem like a waste of time, but it can act as a protection in the event that income is lost, and it is a great way to spur innovation. This is one time when being a negative thinker is valuable. What if we lose our main source of revenue? What if the FCC were to change its rules about advertising? What if…?
Change happens because nothing stays the same forever. Try to examine every point of failure and vulnerability and develop a backup plan. Doing this has saved my business many times. Developing a contingency plan can save yours, too.
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