As a business owner, the buck stops with you. Your employees rely on you to have the answers when a problem occurs. But what are you going to do when you find out a hurricane or wildfire is heading your way? What about massive hardware failure? Will you be prepared?
Nobody wants to think about a natural or manmade disaster affecting their business, so that’s why companies delay or ignore creating an emergency plan. A Travelers Insurance study found that 48 percent of small businesses have no plan in place.
To be prepared in the event of a data, natural or manmade disaster, companies need to have a business continuity plan in place before a crisis occurs. A business continuity plan is a document outlining how a business will continue services following an emergency.
With that in mind, here are four ways a business continuity plan can help your business:
Do you know the minimum requirements for running your company? One of the primary goals of a business continuity plan is to identify the core functions of your business. These functions are what need to be addressed first to get back up and running at a minimum acceptable level. That way, you can reopen while continuing to address other issues.
Every hour your website, production line or office is down costs you money in lost profit. Following a disaster, 90 percent of smaller companies fail within a year unless they can resume operations within five days, according to FEMA. With a well-developed plan, your employees will know what to do to get operations running again as quickly as possible.
While doing a business impact analysis, you may find gaps in your plan. For example, if you’re in manufacturing, do you have a secondary location to shift operations if the main facility is inoperable? If not, then you may need to come up with a plan to temporarily use a rental facility or stock up on emergency inventory.
Researching and developing a business continuity plan can be a daunting task, no matter the size of your company. But once you’ve tested your plan and it works, you’ll be glad you have it. You and your employees can rest easy knowing that if the worst happens, you’ll be ready.
Unfortunately, not all small-to-midsize businesses have the time to halt work and focus on building a plan. Luckily, they don’t have to do it alone. Our team of experts can help simplify the business continuity process to help prepare your business if the worst ever happens.
Stop worrying about the worst-case scenario and contact us today.