We are often told to “hope for the best, prepare for the worst,” and the advice seems well-founded. After all, who wouldn’t want to survive through the worst of circumstances?

But preparing for the worst makes your company capable of exactly that – responding perfectly when the worst possible situation comes. The arsenal is all ready for when your most important competitor starts a price war, so is it when your customers don’t adopt your new product. But what if the same competitor shifts focus to a different market segment, or your new product is adopted surprisingly well by the market? Having the options in place to quickly increase production will then allow you to capture the market. At the very least, having a way of noticing such an opportunity will let you take advantage of the next one when it arises.

Sun Tzu says in The Art of War: “Be conscious of possible disadvantages that can arise when you are in a favorable position. Also be prepared for possible advantages that can arise even when you are in the midst of misfortune.”