Plan B: When Should You Hit the Emergency Button?

When Plan A starts crumbling, do you hit Plan B too soon? Or wait too long?

In this post you and I are going to assess our past actions and consider exactly that.

That’s the question every ambitious professional faces. But in my 20 years of professional journey I have observed that the dilemma is tougher especially for startup founders because the stakes are high and the pressure is real.

But still, jumping to Plan B at the first sign of trouble could mean you never gave Plan A a fair chance. But again, holding on too long could lead to irreversible damage.

So, when is the right time to pull the lever and switch? Let’s ponder.

Why every professional, needs a plan B

We all know nothing ever goes perfectly according to plan. Though I often wonder why God’s plan is always so different to ours. Or may be we notice only when they differ ??.

Anyways, like I was saying, things never go according to plan. There are unexpected challenges along the way. Market shifts, unexpected competition or internal issues can derail the most well-thought-out strategies.

I am reminded of something that happened in my own business way back in 2012, when my husband and I were running a computer training institute. The Government of India added a madatory 50-hr computer training program for Industrial Training Institutes (ITIs). When the students from local ITIs started trickling in to our institute, inquiring about computer training programs, we realised we were equipped to take early bird advantage. And we went all out for it.

We set up multiple training centres all over Jharkhand and Bihar. The business flourished. We managed to train 5000+ students in the first three months.

But after 8 months or so the government made the course optional rather than mandatory. You can guess what happened next. Tl;dr we had to shut down our out of town centres quickly to cut on rental annd other costs. Ad we had no exit plan in place because we thought we were just starting out.

As you can see, the turn of events was completely out of our hands. Things changed and we should have had a backup plan. Plan B.

Know that having a Plan B isn’t about giving up; it’s about being prepared for the worst while aiming for the best. But what’s even more crucial is knowing when to activate it. Timing is the key.

Plan B should not be your first resort

Some people think that Plan B is a safety net to fall back on the minute things go wrong. Nothing could be further from truth. If you switch too quickly, you never even test your endurance. Which is actually a shame since real success often comes from pushing through discomfort and overcoming obstacles.

If you immediately resort to Plan B, maybe Plan A wasn’t something you believed in enough. ??

Challenges are a given in any professional situation, whether you are your own boss, run a business or work as an employee. Think of Plan B as your insurance policy, not your easy out.

A framework for activating Plan B

The decision to move to Plan B isn’t an admission of failure. It’s about being smart and strategic with your time, energy and resources. Every successful professional has had to pivot at some point. What defines their success is when they made that shift.

So, how do you know when to move to Plan B?

Here’s a simple 3-step framework you can use:

Step 1. Evaluate the severity of the problem

Ask yourself: Is this a temporary setback or a fundamental flaw?

Temporary challenges such as missed deadlines or high attrition or a delayed product launch should not be reasons to jump ship. However, if the issue is systemic, like losing your biggest clients or a market collapse, then it's time to consider Plan B.

Step 2. Analyze your progress

Ask youself: How far have you come with Plan A?

It’s time to evaluate if you have achieved any significant milestones following Plan A, or are you just treading waters. If Plan A has been producing consistent, eve if slow, results, it might still be worth holding on to. However, if months have passed with little progress or no clear direction, it might be time to pivot.

Step 3. Examine Resources and Energy

Ask yousefl: Are you running out of resources - financial, emotional or physical?

If you’ve poured everything into executing Plan A but find yourself at a dead end, don’t let sunk costs blind you. We often cling to what could have been for love of what we have put into it. But it’s better to shift focus than to continue draining resources on a strategy that’s no longer viable.

When Plan B Becomes Essential

When you follow the 3-step framework outlined above, you can identify clear signs that tell you that it’s time to consider Plan B. To avoid sinking more time and resources into an unviable strategy. Here are a few I have encountered over the years:

• Consistent negative results: If you've been hitting roadblock after roadblock without any signs of progress, it's a clear signal that Plan A isn't working and it's time to pivot.
• Depleted resources: When your financial, emotional or physical resources are nearly exhausted, continuing with Plan A could be a losing battle.
• Shifting market conditions: When external changes (such as new competition, technology disruptions or economic downturns) render your original plan outdated or irrelevant, it's time for Plan B.
• Key stakeholder exit: If a crucial team member, investor or client pulls out unexpectedly, and their role or contribution was integral to Plan A's success, you may need to shift strategies.
• Regulatory or legal changes: When new laws or regulations directly affect your product or service and you can't adapt Plan A fast enough, Plan B is necessary to stay compliant.
• Unforeseen technical failures: If your product or technology faces insurmountable technical issues that can't be resolved within a reasonable timeframe, it's time to consider Plan B.
• Significant customer dissatisfaction: When feedback from customers consistently highlights major flaws in your product or service, and improvements aren't solving the issues, a change in strategy is needed.
• Sudden loss of competitive advantage: If a competitor makes a significant move (like launching a superior product) that undermines your competitive edge, you might need to switch to a new plan.
• Misalignment of team or vision: If internal conflict or misalignment between your team and the company’s long-term vision arises, and attempts at reconciliation fail, a pivot may be required.
• Consistent failure to meet milestones: When you repeatedly miss key milestones and deadlines, despite best efforts, it's an indication that Plan A isn’t sustainable.

Final word of caution

Don't let ego or fear dictate your choices. The real skill lies in knowing when to persevere and when to pivot. Are you ready to make that call?