This article is intended for general informational purposes only and does not constitute legal or financial advice or an opinion on any issue. It should not be regarded as comprehensive or a substitute for professional advice.
Roadmaps for revenue and expansion are imperative for small-business growth, but they're only a few of the variables that go into the planning equation. Business owners should also consider devising business continuity plans.
Business continuity plans formalize the steps you can take to keep operations running in case of a major crisis. They can keep your company and your staff operating if anything happens to you or any of your business partners, giving them peace of mind that work will continue, and they'll be compensated.
Planning for the Worst
First, assess all potential threats your organization might face. The primary threat is that the business owner may no longer have the ability to oversee and orchestrate day-to-day activities at the company or perform their usual functions. Once you've defined the threats you face, make a plan to outline a process for responding to those threats to protect operations both during and after the unexpected situation.
Components of a Business Continuity Plan
Business continuity plans, or business contingency plans, are plans for how your business can operate in case of an emergency. They usually include protocols for disasters like fires, earthquakes, and hurricanes. Even though these natural disasters can be devastating, recovery can occur faster if there's a plan in place. With the past COVID-19 pandemic, emergency planning must adapt to the unique challenges it poses.
Business continuity plans should be based on the type of risks faced. For example, a natural disaster plan might look different from an unexpected illness plan.
Roles and Responsibilities of Your Team
Another element of your plan should be documenting the team you'll have in place. You may want to consider who will be on the succession team, including legal representation, accountants, and key managers. If you’re operating within a business partnership, consider what may happen if one of the partners is incapacitated.
Next, consider job responsibilities and communication. It’s imperative to have documentation that can share what roles and functions need fulfilling. Plans should clarify job responsibilities as well as outline new safety measures to keep workers protected.
It’s also important to ensure all documentation is current, accessible, and clear. This includes key components of a business continuity plan, such as Recovery Time Objectives (RTOs). The RTOs define the number of days necessary to restore business functionality and avoid material disruption after the occurrence of a disruptive event.
Backup and Security Basics
A trusted employee or two will be critical during a disruptive event or your incapacity. These staff members should be cross trained in the critical functions of the business.
The trusted employee needs easy access to important functions and assets like bank accounts and payroll. Using a password vault, along with a set of encoded files, gives the employee the information they need while keeping this confidential information secure until it’s required.
Also, there are some basics that need to be defined that seem obvious but are often overlooked, including:
● Insurance policies
● Employee contact information
● Physical and cloud locations of stored data
The Benefits of a Business Continuity Plan
One of the primary benefits of having a plan in place is that it lets you train your team for the unexpected. You can literally run the scenarios that may befall your company to train your staff on how to operate in a crisis.
Another benefit of any effective continuity plan is how it can help businesses carry out operations with speed and efficiency. Businesses can leverage automation to quickly activate the continuity plan when needed. That way, the owner can focus on the human elements involved in surviving a crisis, such as inspiring team members or reassuring customers through regular communication.