Backup plan? Who has time to develop a backup plan when we are all answering calls and emails and planning our clients’ amazing experiences? But what would happen to your business if you couldn’t tend to it? It’s a lesson we have learned before, and one we don’t wish to repeat. We must learn from our past, so we can have a bright future. So, let’s talk about creating a risk management policy…in other words, your backup plan.
To jumpstart this initiative, we urge you to view our webinar Mastering the Currents: Comprehensive Risk Management for Travel Professionals, presented yesterday by Sheila Folk, CEO and founder, Travel Industry Solutions. Premium subscribers already have 24/7 access to this recorded webinar as one of their benefits. Not a member yet? Click here to subscribe, and you can view all our live and recorded sessions, along with many other perks.
It’s Time to Create a Backup Plan!
As a responsible small business owner, have you planned to protect your agency and your clients if you were absent for any length of time? You probably have a short-term plan to cover your business affairs when you take a well-deserved vacation. But what if a longer-term issue arises that may suspend operations for a while or even permanently? To address those concerns, you need a backup or succession plan. To help you, we asked a few savvy agents who already have backup plans. We reached out to our certified graduates, and here are some of their solutions:
Backup Plans from Agency Owners
Jennifer Walker, CTIE, Jennifer Walker Travel Inc., said that, in her absence, coverage is supplied by her independent contractors. Her husband is the secretary/treasurer with full access to bank accounts and passwords. If necessary, her husband can take over or work with their consortium to sell assets to another member agency. “Planning ahead for the future of the agency should be an important component of any business plan.”
Denise Lorentzen, CTA, Dreams Travel Consulting, offers these practical storage and backup tips: “I have a master binder with all important info, including our CRM log-ins, banking, ICs, etc. This info also is organized digitally in a Google Drive account. And I have a few friends/travel advisors who know what to do. My family could call on them as well. It’s so important in this business to have colleagues you know you can trust. If you don’t have that but work with a host agency, then turn to your host as a source of help as well.”
Succession Plan Advice
Jackie Friedman, CTC, president of Nexion Travel Group, wrote an article for Insider Travel Report titled Insider View: A Guide to Succession Planning for Your Business. This excerpt from Jackie’s article stresses the need for proper planning.
There are many reasons to have a succession plan in place. Among those: an unexpected medical issue leaves you unable to tend to your business; a major family emergency prevents you from working; you decide to retire earlier than expected; you die unexpectedly.
When considering what your succession plan might look like, here are some things to think about:
- Selling your business: Will you hand it over upon your death? Perhaps you want to identify someone to transition your business to over time, for example at 25 percent intervals until it is fully under the control of the successor.
- Look to your peers: Do you know a fellow travel advisor whom you always have admired? Does he or she have a niche that fits well with yours, and do you share the same values? That person could be someone you want to consider handing your business off to.
- Look to your network: If you are part of a host agency or consortium, does it offer an opportunity for you to sell your business to the company or other members?
By planning ahead, you are helping to ensure a successful transition, retirement, or outcome for your heirs. Backup and succession policies are not only smart but give you peace of mind AND are an essential part of the service you offer your clients.
Thank you, Jackie, for this insight. As you can see, there are many pieces to this puzzle called The Travel Agency. Risk Management is the glue to it all. Don’t skip it.
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