Does Your Business Need A Continuity Plan?

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The business community has suffered a lot lately.  Swine flu, hurricane Katrina and other disasters like these have disrupted the operations of many businesses time and again.  To manage these risks, a business has to develop a continuity strategy which is the key to the organizational survival. Business continuity planning is a critical component of the recovery strategy of any business. Unfortunately, not all businesses spend their time and energy on developing a continuity plan. If you haven’t planned it for your business either, it is high time to do some research and find out if you need one or not.

You might be thinking to yourself that I already have insurance, why would I need another plan. The thing is, insurance just provides you financial assistance, it is not really a road-map on how to get things back on track. If you don’t really have a continuity plan, you will have a hard time fixing things. This can make you lose potential customers too. If you are a small business, it might seem like a stressful endeavor. Many people think it’s not meant for large organizations that can bear the expenses of hiring consulting firms, but that’s not really the case. It is not an expensive procedure and it is not stressful at all.

Think about it. If all the company’s data is lost, wouldn’t you wish there was a backup of your data that could provide you immediate access to the files of your company and customer information? If fire hits your building, wouldn’t you want to that you have an alternative location from where you can run the business operations smoothly without pausing anything? This can save you from huge loss, right?

No matter what kind of business it is that you are running, you need a continuity plan. Here are some misconceptions about this plan debunked so that you can have a better understanding of why you need it for your business:

  • We will know how to handle the emergency situation

If you think you will know what to do when things go bad, then you are kidding yourself. If everyone keeps on responding to the incident their way, it will create a lot of confusion. But if you have everything documented in the form of a business continuity plan beforehand, your employees will just have to follow it.

  • Insurance will cover all loses

That’s not true. Insurance never covers all losses. What about the customers that you have lost, the reduction in market share or delay in the launch of a new product? For that, you will definitely need a continuity plan.

  • We don’t have time for developing a plan

This is the oldest excuse in the book.  If an unfortunate event occurs, even if you are not running the business, you still have to pay the fixed cost. In such a situation, the quicker you return to the normal operations, the faster the business will recover. So, why not develop a continuity plan instead of putting your business at stake when things go wrong?

If all that makes sense to you, start working on the continuity plan today. Don’t wait for a catastrophic event.

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