Have you ever wondered why so many small businesses fail within the first 5 years of operation while others succeed? Obviously, all these businesses started with one clear goal in mind – to make money. Some may say that they fail because of poor leadership which is true.
Others may say the lack of capital which is also true. Interestingly, most people because they fail to prepare for the future. That’s why you need to ask yourself why do you need a business continuity plan? Becoming an entrepreneur is all about taking risks. In order to ensure that your business is sustainable, you need to put in place systems that can prevent threats whether internal or external that may try to infringe on your day to day operations.
Managing these risks by developing a business continuity strategy is key to the survival of any organization.
Why Business Continuity?
Business continuity planning is one of the most critical components of any recovery strategy. Unfortunately, not every company develops a continuity plan. Here are a few misconceptions and realities about business continuity planning.
Misconception #1: “Our people will know what to do in an emergency.”
Even the best employees cannot be expected to know what to do when disaster strikes. Leaving each to respond in his or her own way only adds to the confusion of an event. Having a well-documented business continuity plan in advance, and training your employees to follow it, gets everyone on the same page — helping to ensure an organized, safe and timely recovery.
Misconception #2: “We have insurance to cover our losses.”
Insurance alone is NOT a business continuity strategy. Proper coverage is a significant and important part of the plan. But it may not fully cover some of the peripheral damages from an event, like loss of customers, loss of market share, or setbacks in development or release of a new product. Consult with your broker to understand what is and is not covered under your policy.
Misconception #3: “We do not have the time to develop a business continuity plan.”
Time spent developing and maintaining a business continuity plan is an investment in your company. Your fixed costs will continue after an event, whether or not you are open for business. The faster you can return your operations to normal, the more likely you will recover from the event successfully. With so much at stake, your company cannot afford to NOT have a plan.
When you have a continuity plan, you can run your business without any fears because you know how to bounce back even in the worst of scenarios.
Benefits of a Business Continuity Plan
- It enables your business to be well prepared for a disaster
- It gives your business more flexibility so that it can adapt to changes in future
- It stops the staff from panicking in case the business is faced with a threat
- It helps to minimize losses
Planning for a disruption or catastrophic event should happen when business is going well, not when disaster strikes. Having a pre-defined, well-documented business continuity plan that clearly communicates how your business will respond during an event can help mitigate risk – and is one of the best investments your company can make.
In case you need help with business continuity planning, contact us today. Having been around since 2003, our team is ready to help you create a plan to protect your business.