Are You Prepared for the Next Crisis? Why Every Business Needs a Crisis Plan
November 4, 2026
Company directors and managers must learn from history. Not just ancient history, but recent history too. Covid-19 was a crisis by any measure, but it will not be the only one we have to deal with.
The next crisis rarely announces itself, and the businesses that cope best are the ones that planned before it arrived.
Why do businesses need a crisis plan?
Because a crisis exposes every gap in your planning at once. Many business owners and managers have no formal crisis plan, and recent instability has shown how quickly that can put a business at risk.
This is not just a small business problem. Many firms, whether small, medium or large, have no plans for dealing with a crisis, and none for succession or growth either.
Why don't more businesses plan for a crisis?
It is rarely for lack of vision or a wish to be proactive. More often it comes down to lack of knowledge, or an unwillingness to think about the worst-case scenarios that might be on the horizon.
But business owners cannot ignore the risks that may come. In my view, you have an obligation to plan ahead and be ready for anything.
What should a business crisis plan cover?
A company needs a systematic, process-oriented way of planning so it can withstand whatever the future holds. Have you thought about these issues? Have you prepared:
- A five-year strategic growth plan
- Leadership succession
- Estate planning
- Continuity of operations in the case of a natural disaster
Take time to think about crisis planning as much as you do operations, finances, marketing or HR. This matters most in an uncertain business environment, where inflexibility or failure to act can be a death knell.
How do you start building a crisis plan?
You do not need to solve everything in one sitting. Start with these steps:
- List the worst-case scenarios that could hit your business, from a natural disaster to losing a key person.
- Identify which parts of the business must keep running, and who is responsible for each.
- Write the plan down, with the people, contacts and steps involved, so it does not live in one person's head.
- Put a five-year strategic plan, leadership succession and estate planning in place, with professional advice where you need it.
- Review the plan regularly and whenever the business changes significantly.
What does this mean when you buy, sell or value a business?
Buyers pay for future earnings, and every unplanned risk makes those earnings less certain. A business with a continuity plan, clear succession and a documented growth plan looks like a safer purchase than one that depends on its owner and a bit of luck.
That is why crisis planning belongs in any conversation about selling a business. Succession planning is, in the end, a form of exit planning, and a prepared business is easier to hand over. A proper valuing a business exercise also helps you see where your risks sit before a buyer does.
If you are buying a business, ask what plans exist for continuity and succession. The answer tells you a lot about how well the business is run.
Don't be caught unprepared. Create your crisis plans now, and be ready for whatever the future holds.
Frequently Asked Questions
What is a business crisis plan?
A business crisis plan is a documented way of keeping your business running, and recovering, when something serious goes wrong. It covers the risks you could face and what you will do about them.
Is crisis planning only for large businesses?
No. Many small, medium and large firms lack plans for dealing with a crisis, and the risk is just as real for a small business. The principles are the same whatever your size.
How often should I review my crisis plan?
Regularly, and whenever the business changes in a significant way. A plan that sits in a drawer and is never updated is not much use when you need it.
Does crisis planning affect what my business is worth?
It can. A valuation rests on the earnings a business can reliably keep producing and the risk involved. A business with clear plans for succession, growth and continuity generally carries less risk in a buyer's eyes.
About the Author
Bruce Coudrey is the founder and Principal of Benchmark Business Sales & Valuations, one of Australia's largest business brokerages, which he has led since 1999. He is a Registered Business Valuer and a court appointed expert witness, has been involved in around 5,000 completed business sales, has valued small businesses since 2003, and was awarded the AIBB President's Medal in 2010.
Want to know how prepared your business really is, or what it is worth? Contact Bruce for a confidential chat.
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My mission is simple. I want to help you be better prepared for a business sale, or a business acquisition. That is it. That is the whole job. I have been doing this since 1999 and I have been involved in around 5,000 completed business sales. In that time I have noticed something. The owners who get their price are almost never the ones who woke up one morning and decided to sell. They are the ones who did the work first, often years before a buyer ever walked through the door. Why does honesty matter when you sell a business? The most useful thing a business broker can do for an owner is tell the truth about what the business is worth and what is holding it back. You know more about your business than I ever will. I know that. But I know a lot about the market, about what buyers are paying and why, and that is where I can help. Being honest quite often means telling the truth, and the truth hurts sometimes. I see it as an obligation. My job is to identify the issues that are dragging on value and the opportunities to lift it. That only works if the owner is prepared to get involved. Some people don't do all the preparation that is needed to get ready to sell. Some don't stay on task. This is where a specialist earns their keep. What does a business broker actually help with before a sale? Before a business goes to market, I help owners in four key areas: Knowing what the business is currently worth on the market. Knowing how to present the business to the market. Knowing who the strategic acquirers are and how to get them interested. Planning the sale process to achieve maximum value in minimum time. Get those four right and the sale itself is the easy part. Get them wrong, or skip them, and you end up negotiating from a position of weakness. What if my business is worth less than I want to sell it for? It usually is, at least at first. When I appraise the market value of a business, the number is commonly much less than what the owner had in mind. Often people want double the appraised value. That gap is not the end of the conversation. It is the start of the plan. Once we know the number you want and the number the market will pay today, we can work on closing the distance. That means: Showing you what profit needs to be to achieve the price you want. Looking at how the sale can be structured to minimise tax, with your accountant. Working through client retention, because a buyer is paying for customers who stay. Working through staff retention, because a business that walks out the door with its people is worth a lot less. Conducting a risk analysis so we can plan to mitigate risk, enhance the business value and expedite a sale. The aim is to give you a road map on how to get your price when the time comes to sell. Why shouldn't I wait until I am ready to sell? Don't wake up someday and decide that you want to sell your business. Understanding what you can do to improve value early gives you the opportunity to maximise it. Then, when you do eventually sell, you know you have done everything you could to get the best possible price. There is no wondering afterwards whether you left money on the table. Business owners need to stay on course. The process of preparation for sale can take months. Sometimes years. Patience is needed, and so is a clear plan, because it is very easy to let the day-to-day running of the business push the sale preparation to the bottom of the list. How do I create competition among buyers? By getting the business ready before it goes to market, you can create competition and tension, where buyers are competing to be the one who buys your business. To do that you need an asset that: Is not easily replicated. Represents good value. Buyers pay a premium for the first because they cannot simply build it themselves. They pay for the second because they can see a return. When a business ticks both boxes, more than one buyer wants it, and that is when the price moves in your favour. You need to do the work. You need to: Understand what you have. Know what has to be done to improve value. Do it. Then execute the sale plan. When the planning has been done and the business is ready to take to the market, you will know that you are going to get the result that you need or want. Not hope. Know. What does this mean for buying, selling and valuing a business? If you are selling a business , preparation is where the value is made. The sale campaign only shows the market what is already there. Every month you spend improving profit, locking in customers and staff and reducing risk is a month that adds to the price. If you are buying a business , the same list works in reverse. Ask whether the business is easily replicated. Ask whether it represents good value at the asking price. Ask what happens to the customers and the staff when the owner leaves. A well prepared business will have clear answers. One that has not been prepared will not, and that should show up in what you are willing to pay. And if you are valuing a business , an independent valuation early on is the honest starting point for all of this. It tells you where you are today. It measures the gap between that and where you want to be. And it gives you something to check progress against as you work through the plan. Frequently Asked Questions How long does it take to prepare a business for sale? Longer than most owners expect. Preparation can take months, and for a business with real issues to fix it can take years. The earlier you start, the more options you have, and the less pressure there is when you finally decide to go to market. What is the difference between an appraisal and a business valuation? An appraisal is a broker's opinion of what a business is likely to sell for in the current market. A formal business valuation is a documented, independent assessment of value prepared by a Registered Business Valuer, and it is often used for partnership changes, disputes, tax or legal purposes. Both are useful. The valuation is the one that stands up to scrutiny. Why do buyers pay more for a business that has been prepared for sale? Because risk is what buyers discount for. A business with clean financials, customers who stay, staff who stay and a plan for handover carries less risk, so a buyer can pay more and still be confident of a return. Preparation removes the reasons a buyer would use to talk the price down. Can a business valuation help me plan a sale? Yes, and I think it is the best place to start. A valuation gives you an honest number today, shows you which parts of the business are driving value and which are dragging on it, and gives you a benchmark to measure against as you make improvements. It turns "I want to sell one day" into a plan with a target. About the Author Bruce Coudrey is the founder and Principal of Benchmark Business Sales & Valuations, one of Australia's largest business brokerages, which he has led since 1999. He is a Registered Business Valuer and a court appointed expert witness, has been involved in around 5,000 completed business sales, and has valued small businesses since 2003. Bruce was awarded the AIBB President's Medal in 2010. Thinking about selling, buying or valuing a business? Contact Bruce for a confidential chat.
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Walk through the CBD of any Australian capital city and you can see the change for yourself. Ten years ago, city retail space was mostly shops, with cafes and restaurants filling the gaps. Today it has flipped. Food, coffee and experiences dominate, and traditional shopfronts are the minority. That happened in a single decade, and I suspect we have only seen the start of it. So it would be easy to conclude that retailing has all gone online, and that retail businesses are doomed. But have they? Is Bricks and Mortar Retail Dead in Australia? No. Not even close. The numbers tell a very different story to the headlines. The Australian Bureau of Statistics puts online sales at around 12 to 13 per cent of total retail turnover. That share has roughly doubled since 2019, which sounds dramatic until you turn it around: nearly nine dollars in every ten spent at Australian retailers still flows through, or around, a physical store. Australians spent about $82.6 billion online in 2025, up around 14 per cent on the year before according to the Australia Post eCommerce Report 2026, and about nine in ten households now buy something online at least occasionally. At the same time, total retail spending keeps growing. The ABS measured over $38 billion in monthly retail spending in early 2026, up about 5 per cent on a year earlier. Put those numbers together and the real story appears. Online and offline retail are not at war. They are converging. Even the biggest online-only brands keep opening physical stores, because a store builds trust and brand loyalty in ways a website simply cannot. Five Shifts Reshaping Australian Retail 1. Stores Are Becoming Experiences, Not Just Shelves Retailers used to be terrified of “showrooming”, where shoppers browse in store and then buy online at a better price. The smart operators have stopped fighting it. They have realised the store’s job has changed. It is no longer a warehouse with a till at the front. It is a place for customers to see, touch and learn, and the sale can happen wherever the customer prefers. Design the store around that idea and showroomers become customers instead of lost sales. 2. Data and AI Have Arrived on the Shop Floor Online retailers have always known exactly what their customers look at, linger on and abandon. Physical stores are catching up fast. Foot traffic counters, loyalty programs and AI forecasting tools are becoming normal equipment. The Australian Retail Outlook 2026, produced by KPMG and Inside Retail, found AI dominating the conversation among retail executives this year. For a small retailer the payoff is more down to earth: knowing your best sellers, your dead stock and your true margins, week by week rather than at stocktake time. 3. Checkout Is Disappearing Tap and go, mobile wallets, pre-order apps, self checkout. The payment step is becoming almost invisible, and retailers keep finding new ways to remove friction. Every second a customer doesn’t spend queuing is a customer more likely to come back. 4. Online and Offline Are Becoming One Business Click and collect. Ship from store. Returning an online purchase over the counter. None of this impresses customers any more, because they now expect it as standard. The retailers growing fastest in Australia run one inventory, one customer database and one brand across every channel, and treat the website and the shop as two doors into the same business. 5. Technology Handles the Routine, People Handle the Relationships Automation keeps absorbing the mundane work of retail: checkout, stock counts, reordering. That does not mean salespeople are disappearing. It means their job is improving. When the routine tasks are automated, good staff can spend their time on the one thing technology cannot do, which is building the relationships that bring customers back. What Does This Mean If You Own, or Want to Buy, a Retail Business? I have watched buyers change what they are willing to pay for. A retail business that is just a lease, some stock and a till is worth a little less every year. A retail business with a loyal customer database, an online sales channel, documented systems and a store people actually enjoy visiting commands a premium. The buyer is paying for a business built for where retail is going, not where it has been. If you own a retail business, the five shifts above are your to-do list, and your value-building plan. If you are thinking of buying a business in retail, they are your due diligence checklist. Either way, an independent business valuation will tell you exactly where the business stands today, and what it could be worth with the right changes. Frequently Asked Questions Is a retail business still a good business to buy in Australia? Yes, if you buy well. Total retail spending in Australia keeps growing, and physical stores still capture most of it. The best opportunities are established retailers with a strong location, loyal customers and obvious room to add online sales and better systems. What percentage of Australian retail is online? Around 12 to 13 per cent of total retail turnover, based on the most recent ABS figures. That is roughly double the share before 2020, and it grows a little every year. What makes a retail business valuable to buyers? Consistent profits, a favourable lease that can be transferred, a customer database, an established online channel, systems that run without the owner, and a store experience customers cannot get from a website. Should I sell my retail business now or wait? That depends on your numbers and your exit plan, not on the headlines. Start by having the business professionally valued. Then you can decide, with real data in front of you, whether to sell now or spend a year or two lifting its value first. About the Author Bruce Coudrey is the founder and Principal of Benchmark Business Sales & Valuations, one of Australia’s largest business brokerages, which he has led since 1999. A Registered Business Valuer and court appointed expert witness, Bruce has been involved in around 5,000 completed business sales and has valued small businesses since 2003. He was awarded the AIBB President’s Medal in 2010. Own a retail business and wondering what it is worth, or what it could be worth? Contact Bruce for a confidential chat.
Planning ahead gives you control. By making realistic, simple plans, you take control of your business and your future. There's a lot of truth in the old saying: "failing to plan is planning to fail." After more than 25 years selling and valuing Australian businesses, I'm still surprised by how many owners run excellent businesses without a business plan, a marketing plan, or an exit strategy. These three documents are what separate owners who leave on their own terms, at the best possible price, from owners who are forced to sell in a hurry and accept whatever the market offers. The Three Plans Every Business Owner Needs 1. A Business Plan A business plan gives your business structure, goals and direction. It doesn't need to be complicated. It needs to be realistic, written down, and reviewed regularly. It's the document that tells you (and your team) where the business is going and how it will get there. 2. A Marketing Plan A marketing plan is a tool that can be handed to others in your absence and, importantly, handed to the new owner when you eventually sell. A documented, proven marketing plan adds real value to your business at sale time , because the buyer is acquiring your knowledge of what works, not just your assets. Businesses that can run without the owner in the room consistently attract stronger offers. 3. An Exit Strategy (Succession Plan) An exit strategy, sometimes called a succession plan, is the most neglected of the three, and the most expensive to ignore. Every business will change hands eventually. An exit strategy lets you leave when you are ready, on your terms , not when illness, burnout, partnership disputes or market conditions force your hand. A well-planned exit typically delivers three things: the best possible sale price, a reduced tax liability, and maximum yield from the business while you still own it. What Happens Without an Exit Strategy? In my experience as a business broker and valuer, owners without an exit strategy usually share one problem: they have no idea what their business is really worth. Many discover, far too late, that the business won't sell for the price they had assumed, or that years of decisions have quietly eroded its value. That discovery leads to disappointment, financial stress, and in some cases a retirement that has to be postponed. It doesn't have to happen that way. A professional business valuation early in the process tells you exactly where you stand, and gives you time to fix the gaps between what the business is worth today and what you need it to be worth when you sell. How to Create a Business Exit Plan: 6 Steps Step 1: Get a professional valuation. Have the business valued by a qualified, registered business valuer. Not a guess, not an industry rumour, but an actual valuation based on real market data. Step 2: Calculate your current net position. Work out the current net worth of the business and what you would actually walk away with after debts, costs and tax. Step 3: Set your exit date and target figure. Plan dates and timeframes for your exit, and the projected net realisation you need from the sale. Step 4: Formulate the plan. Document how you'll close the gap: improving profitability, systemising operations, reducing owner-dependence, cleaning up the financials. Step 5: Review progress regularly. Check performance against the plan at least annually. An exit plan is a working document, not a drawer document. Step 6: Start early. The best time to start exit planning is the day you start (or buy) the business. The second-best time is now. Frequently Asked Questions What is a business exit strategy? A business exit strategy is a documented plan for how and when a business owner will leave the business, whether by sale, succession to family or management, or merger, and how they will maximise the price, minimise tax, and protect the business's value in the process. When should I start planning my business exit? Ideally from the day you start or buy the business. Practically, you should begin serious exit planning at least three to five years before you intend to sell. That gives you time to lift profitability, systemise the business, and present clean financial records to buyers. How do I find out what my business is worth? Engage a qualified business valuer. As an AIBB Registered Business Valuer, I base valuations on real settled-sale market data, not rules of thumb. Knowing the true value early is the foundation of every good exit plan. Learn more about business valuations here . Does an exit strategy add value even if I'm not selling soon? Yes. The work involved, such as documenting systems, reducing owner-dependence, and improving margins, makes the business more profitable and easier to run today, while making it more valuable and more saleable whenever you do decide to exit. Take the First Step Remember: planning ahead gives you control and direction. Whether you're thinking about selling your business in the next twelve months or simply want to know where you stand, the first step is the same: find out what your business is really worth. I've completed more than 5,000 business sales since 1999 and have been valuing Australian businesses since 2003, including as a court-appointed expert witness. If you'd like a confidential conversation about your exit plan or a business valuation , get in touch here . Bruce Coudrey is the founder and Principal of Benchmark Business Sales & Valuations, one of Australia's largest business brokerages. He is a Certified Practicing Business Broker, AIBB Registered Business Valuer, and recipient of the AIBB President's Medal.