Do you have redundancies in place for your business? Small and medium businesses need to understand the importance of redundancies and how they can impact you. Anything can happen and you need to be prepared. Listen to the type of redundancies that we recommend and that you can implement today!
Roger: Welcome to Local SEO Today. I’m Roger Murphy.
John: And I’m John Vuong.
Roger: John, today we’re going to talk to business owners, entrepreneurs who are watching our podcasts and watching this video about something that many people do not think about and they really should and it’s referred to…It’s called a redundancy so let’s talk about ideas or situations where redundancy can help you and how can it hurt if you don’t have it.
John: Yeah, so this is a great topic because a lot of business owners don’t even think about this until it happens. It’s kind of too late because you might have already ruined your reputation, right? So, as a service provider, let’s give you an example, you are a pest control company and one of your staff call in sick. What happens when they have a whole list of people’s homes that they have to go and scheduled for? What happens in that situation? Do you have someone that is a sub-trade or a contractor that come in to do the work, do you have another company that can actually do the work for you during that time? Like what is your backup plan?
Roger: Exactly, it’s like having an extra service vehicle. You might think I don’t need this one, I don’t have a regular stop but let’s say the service guy, something broke down. Time is money if you lose time because the other truck or vehicles aren’t in service. Backup or redundancy. It might even be having, frankly, if you have one team or if you have two teams, the teams can back each other up, right?
John: Exactly, so not only do you need people but also equipment, right? And if you’re in digital it could be software agencies so making sure that you have a back-up plan so that in case something happens and of course this typically happens when it’s unexpected when you’re probably strapped for cash or you know, something that you didn’t expect you kind of now have to come up with a solution and they’ll cost you a lot more to troubleshoot it as well as you might lose all of your core clients when you’re not able to serve them in a timely manner.
Roger: Especially, if they’re in a type of, you are in a business where your clients are in an emergency situation if it’s plumbing, electrical, anything where if something goes down you’ve lost your heat, you’ve lost your electricity, water, whatever it is. They need your service now,
John: So, not just vehicles, not just the people but the equipment inside in general. What is your redundancy plan, right? Last case you can always just rent it at a store but you need to form the relationship and you need to make sure that they have it in stock, right? So, there’s a lot of things that you really have to, you know, look at.
Roger: On a business level and this is on personal also but have more than one credit card. Redundancy. What if the one goes down, one gets hacked? You still need to continue on with your life if you’re traveling around the world having that second card in case one goes down but in business, personal all these little things in terms of the redundancy will…It takes a little time to get it set up and I don’t recommend having 20 credit cards and you know, going into debt all those. All I’m saying is having two accesses to credit for business and or personal. You got relationships with two different institutions whether it’s, you know, one bank or another bank or two different banks that’s way more effective and better for your business.
John: So, in terms of not just a business as well but personally, you know, in life what is your backup plan, right? Like there’s a lot of younger entrepreneurs or even people that strive to be athletes, what is their back-up plan? Like you know, you think about it and they spend all their time wanting to be that athlete Michael Jordan, LeBron James whoever it may be and they don’t really have a fallback so they don’t really want to excel in school, they don’t want to do well like they don’t really want to get a job because they’ll trip away, they think they’re gonna get recruited. What happens if they don’t?
Roger: And this is an actual story, a junior achievement, a number of years ago. I went to a grade eight class with another colleague. We were going to talk to the kids about their future in school and education, etc. And when asked…I just asked around the room so what do you want to do, what are you gonna do? And all I heard was, “Well, I’m gonna be NBA.” “I’m gonna play pro ball.” “I’m gonna play football.” So, to your point, John, is exactly what I said, I said that is a fantastic goal to have but just in case what’s your backup plan? It’s great to have this education. So, it’s redundancy, having a back-up plan. It’s so true.
John: Yeah, so you know, as a business owner redundancy is so critical like in our business software has to be properly backed up, right? So, we build websites for clients and this has just happened a couple weeks ago, where for us we actually backup all our clients websites on external hard drive as well as online, right? However the hosting provider it was, you know, a hosting provider that was a reseller and they kind of went under so their whole website was down and there was no contact from the hosting provider. Good thing we had a backup on the external hard drive and we were able to still keep their domain name and migrate that information over to a new hosting provider and get their website back up within 24 hours, right? But good thing we did have a back up and that’s what we kind of do for our software company, right? Making sure we have redundancy plans in place.
Roger: Exactly, so if you think of it personally and professionally this idea of having redundancy is… You may say, “I don’t need it. It’s extra hassles, more paperwork.” But in reality things always will go…It’s like Murphy’s Law, anything that can go wrong will. You need to have that redundancy. I like the idea. When my dad had a small business when I was growing up. Not a, you know, massive business but he had a relationship with one bank and then the other bank. He had some business everywhere because just in case something goes wrong in one place he’s got full access to credit, to access, to managers, to helplines in different places. So that was just his own redundancy.
John: And even with suppliers so if you were to buy a lot of inventory from one supplier what happens if they run out of it? Or something happens in terms of they can’t get it in time, right? You need to make sure, like especially if you’re in the auto parts business or something that actually has a very high…You need it right away.
Roger: Time sensitive.
John: Time sensitive, right? So, you need to make sure that you have different suppliers so that what if they can’t service you at that urgent moment?
Roger: Exactly, that can happen. So, the idea of having two suppliers you might think, “Well no, if I do it all with one supplier I get better pricing and get better volume discounts.” The other side of the coin is that if that one supplier has had an issue with shipments coming in you’ve got a back-up plan, you could go somewhere else, you’re not having to make a very difficult phone call to say, “Will you open an account for me?” And then they say, “Well, you gotta fill out a credit form.They’ve got to check you out. It’s gonna take five days.” That is a tremendous amount of downtime for your business so ahead of time having relationships and credit lines and supply chain stuff set out in different places will only serve you in those moments.
John: And I think the last thing I want to mention about redundancy is people redundancy is very important as well as a business owner so if you were to run a dental office, I know there’s a lot of hygienist or if you have a private school there’s a lot of teachers, right? What happens if something happens to them, right? They are, you know, diagnosed with something or flu, an accident happens or whatever it may be. What is your backup plan, right?
Roger: Because your clients, your patients they can’t wait. They need to be serviced or something.
John: Exactly, and you have that booked for the next week, right? Who’s gonna come in and fill the void, right? What is your backup plan? Do you want to just postpone it and call everyone and that may look bad but make sure it doesn’t happen frequently, right? So, make sure you’re fully staffed and with a redundancy plan in place.
Roger: And really, if you even to take away from this video today if you just say, “Okay, financially I wanted to look at redundancy software from my online world. I need some redundancy.” Just tick off the check box for each of these different ones. Do a few them, you know, a few times a year but just say, “Yes, this is my project right now.” I’m making sure that my credit line is…I got redundancy. I’m gonna make sure my suppliers that I’ve got redundancy so that it’s a good, you know, like a to-do list that will help make sure your business runs smoothly.
John: Yeah, and I think it’s very important just budget it in, in your finances and make sure that you have that allocated amount in case anything ever happens, right? So, you’re ready for any situation. So, well that was a great talk. Thanks a lot, Roger. I really liked that topic.
Roger: One last tip and trick: take picture, redundancy of your passport and then have it somewhere just in case. Anyway, have a good day and we’ll see you again at Local SEO Today.
John: Thank you.