Why are Business Continuity Plans Essential in today's business Environment?
In the event of a disaster, are you prepared for your small business? The truth is, disasters could strike at any moment and is usually an unplanned incident. Every business should have a business continuity plan, but the majority of companies don't even understand what business continuity strategy is.
I was speaking with a small-business owner this week, and I asked her whether she had a business continuity plan. Her response was "no I don't have one since I'm not planning to retire for another 10 years". business insolvency advice
What I was referring to by business continuity plan was not an succession plan or exit strategy, but the plan of your company to keep running even in the event of a catastrophes that strike.
What is the reason your company requires an emergency plan for business continuity? Since most disasters don't let you know the fact that they're coming. this means that your company will likely not be prepared to deal with a disaster.
What kinds of disasters can be a threat to businesses? Fire or flood, earthquake, tornado, hurricane terrorist attacks, and many more. The list of possible disasters is lengthy.
Notice:if you are a single-person company, you'll require an abbreviated version of the plan below. Make a smaller to-do list and to-keep-list. Keep an original copy of your company contingency plan inside a safe storage box (across town, if you can) or with someone you trust and who is easily accessible in an emergencies, but not your next door neighbour (since the worst-case scenario could affect both of you simultaneously).
If you have an enterprise that is small and has greater than fifteen employees,, you might consider having plans for every department (e.g. administration/finance; sales/marketing; operations/human resources, etc. ) and every department head accountable for their department's strategy. But the plan should integrate into a central document which you, as a small-sized business owner, must to control and manage.
The plan you create must include how you can manage the consequences of a disaster on your company. Do your employees have the ability to travel to the place where they work? Can your business operate? How do you communicate with your suppliers and customers or, how can they get in touch with you? Are your company's data in a management system that is backed-up regularly in a secure off-site location (way offsite ) - some business owners keep these records in cities throughout the nation: backups downloaded are transferred via scripts to backup providers).
What part of your business continuity plan should include:
A Communication Plan What will you be communicating and to whom will you talk to? The contact lists you create must include all of the key stakeholders: customers, employees suppliers and your insurance company and lawyer, your accountant and software provider and banker, your landlord or property manager in the event that the building isn't owned by shareholders, or owned by the owner and other important people for your company.
You could use your website to communicate messages to all the various stakeholders. When you begin calling employees and suppliers, customers and suppliers, inform them that you'll be updating information on your website (if there isn't one, create at a minimum a one-page website as a place-holder). You should ensure that you have a web host who can make updates to your website for you since you'll be doing other things. This will spare both you and your team members time when it comes to getting the message across.
Affordable Insurance Coverage: Ensure that you have an income interruption insurance policy for your business. insurance coverage. You want to be covered for both downstream and upstream loss situations. The interruption could be upstream that you'd experience when one or more of your suppliers were affected by the catastrophe and was unable to supply the required items. Downstream could refer to the loss that you experience when a significant client is affected due to the catastrophe and ceases to purchase products or services from you. Make sure you have the appropriate insurance that covers other problems, for instance, accidents on site that cause injuries to employees or guests or the loss of products or other materials purchased by your customers. business insolvency helpline
Inventory List: Make sure you have a business continuity strategy that incorporates an itemized inventory of the equipment and supplies that you frequently utilize.
Business Recovery: Develop your business recovery plan. What should you first do and then? What will you do first, second, and third? You might want to contact your competitors to ask for assistance (yes it's painful, but if you provide your customers with support, this, they'll be able to be able to remember). If you own an industrial plant, think about the equipment you'll need and the speed at which you can upgrade the most crucial parts (e.g. think about asking your equipment vendor for any demonstration equipment they can loan until the new equipment arrives). If you're involved in inventory management be sure to keep the inventory-turn list and information about suppliers in your business plan documents.
If you own the property you may want maintain a record with pre-approved professional engineers (these are highly sought-after when the catastrophe has impacted the area in large numbers) and also consider hiring an out-of-town engineer. If your building is standing following the catastrophe, it may be required or require a structural inspection prior to resuming operations.
In the event of the damage and incident, you may not be able to restore your business. Don't make the decision too fast. There is always an emotional reaction to a the event. Your emotions could hinder your ability to make an informed business decision. When you are writing the business continuity strategy, now Include the reason you are running your business as well as the reasons you started your business. If a catastrophe strikes be sure to carefully consider the reasons behind reconstructing your business. If you have a solid business continuity plan incorporated in your plan this can make the decision to proceed much more smoothly.