WHEN YOU MAKE A BUSINESS PLAN - INCLUDE A BUSINESS CONTINUITY PLAN

A look at the statistics shows that the importance of a business continuity plan (BCP) cannot be overemphasized no matter how big or small your business.
Were you aware of the fact that 80% of businesses affected by a major incident never re-open or end up closing within 18 months? Or, were you aware of the fact that 85% of businesses that suffer a significant loss of data go out of business within 2 years? In most cases these failures are due to the fact that business owners did not include a BCP when they made a business plan.

WHAT EXACTLY IS A BUSINESS CONTINUITY PLAN?
A business continuity plan is the bridge between a disruption affecting the ability of a business to deliver its product or service, and how quickly it returns to "business as usual". In practical terms, it lists the details of actions to be taken by your business to continue running in the face of a wide range of minor and severe disruptions.

REMEMBER THAT FAILING TO PLAN IS PLANNING TO FAIL
Think of all the worst case scenarios and risks that can cause a major breakdown in your business and list them. Some possibilities include:
        • A major fire or flood affecting access to your premises.
        • Loss of a significant number of staff.
        • Loss of utilities for an extended period of time.
        • Loss of communications or important data
        • Loss of critical equipment
        • Loss of specialist resources or technology

FIRST STEPS TO DEVELOPING A BUSINESS CONTINUITY PLAN
It may be helpful for you to consider a BCP as risk management. What you are doing is managing the probability and impact of each of the types of risks your business faces in a worst-case scenario. Some risks are internal and are immediately under your control (like data backup systems) while others are external (like fire or natural disaster).

It is important that all the risks with high probability and impact have proper resumption and response plans in place. Review your overall business structure and identify potentially weak points. These can be different for every business. There is a need to consider the essentials of every business, including raw material sources, ownership, distribution chains and customer support, accounting and financial reporting.

Operation continuity is an essential in business continuity-planning, but there are other issues that need to be dealt with. These include protection of the company’s reputation, market share, brand supply chain and retaining the customers, employees and stockholders.


BASIC REQUIREMENTS OF A BUSINESS CONTINUITY PLAN
1. Make a business plan design that plans in advance to protect and prevent any of the risks your business is most vulnerable to.
2. Plan the activities to be executed during an emergency, including: an evacuation plan; an emergency response plan for workers and customers; a crisis management plan; an alternative contingency operations plan; and a data recover plan.
3. Organize in a document or handbook or vital information, resources and documentation of the activities for resumption and recovery of the business and make it accessible and required for all.

IS HAVING ADEQUATE INSURANCE A GOOD ENOUGH PROTECTION?
Adequate insurance cover is essential to all businesses. It protects your assets, and liability against normal operational damages. Yet, there are crucial threats in worst case risk scenarios that no insurance can protect you from. These include:
• Loss of customers – if your business sufferers from a significant disruption that stops you supplying your product, your customers may be forced to source the product from your competitors!
• Loss of share value – if you are out of business for a period of time your shares may fall significantly, making value difficult to regain
• Loss of reputation – if you are affected by disruption to your normal working arrangements and therefore have a reputation for unreliability you may loose out to your competitors

You will have invested significantly in your business and need to ensure it remains safe, workable and secure – being prepared reassures your customers and suppliers and shows you take resilience seriously. They are crucial steps to ensuring you large of small business success.

Morris N Mann
Successful Small Business Online Solutions