Why you need a business continuity plan

August 05, 2014

Although it would be a helpful skill to have, no one can predict the future. Everyone is susceptible to having to deal with the fallout created by an unexpected incident, and small business owners are no exception.

Hurricanes, power outages and data breaches can happen without warning. They have the potential to affect any business, including yours. Whether you’ve just incorporated your business or are a seasoned entrepreneur, you need a solid business continuity plan. This will ensure that operations can continue in the face of disaster without incurring significant losses in the process.

Why do you need a business continuity plan?

When disaster strikes, you will be able to respond and continue providing your services. A business continuity plan involves developing a strategy that you implement in the face of an emergency. For example, if your brick-and-mortar establishment is put out of commission by a flood, you will need a backup plan and a place to take your operations when your normal operations cease to function.

The importance of business continuity is great enough that the Small Business Administration (SBA) has highlighted it in a recent press release that calls for small business owners to draw up a plan of their own.

The Small Business Administration recognizes the importance of business continuity planning

According to the release, the SBA plans to host an event addressing how businesses should go about preparing to create a continuity plan. Along with Agility Recovery, the SBA will be hosting a webinar about the subject. It will allow business owners to learn what they need to do to create a successful plan. Interested businesses can register for the webinar here.

In the unfortunate event of a disaster, being unprepared could leave your business exposed to losing everything. But you don’t have to let that happen. Adequate preparation will help you handle any situation that comes your way.

Here are a few tips to help you start the planning process:
  • Consider formulating a plan to help you respond to a disaster
  • Make a list of all of your employees to keep on file, including important contact information
  • Write down the possible man-made or natural disasters that could impact your business operations
  • Establish a plan that will allow you to coordinate with neighboring businesses in the event of a disaster
  • Make a list of who will be in charge of operations when an unplanned incident occurs, like a natural disaster
  • Establish a system to communicate emergency plans
  • Set up a system to backup files so they may be recovered at a later time

Failing to establish a business continuity plan could put your operation at risk. Opening the door for losses to occur, both financially and in terms of your company’s reputation. Although you may be fortunate to never experience such a disaster, you will be happy to have had a plan in place in the event you do.

In addition to having a plan that will help ensure the continuity of your business, incorporating your business will help establish the framework from which you will be able to achieve success. Whether it’s checking for company name availability or you have a question about which type of business entity will best suit your company’s unique needs, an online incorporation services company can answer any questions you may have.