10 steps to Business Continuity Planning
what is a business continuity plan?
Business continuity planning is crucial for any company to ensure ongoing operations in the face of disasters or emergencies. It serves as a reliable Plan B, enabling businesses to continue trading even when traditional offices, workspaces, or equipment are unavailable.
To create a robust business continuity plan, consider incorporating the following 10 key elements:
Location and Workspace: Verify that all employees have access to a stable internet connection to facilitate remote working. Set clear guidelines for maintaining workflow and schedule regular online catch-ups to discuss and agree on priorities.
Key Products or Services: Identify the core products or services that your business can offer during disruptions. Focus on essential activities that generate revenue and maintain cash flow.
Key Staff and Resources: Determine the key personnel required for operating the business during challenging times. Define essential roles, assess the necessary resources for trading, establish approval processes, and ensure critical knowledge is shared within the team.
Key Contacts and Connections: Compile a list of crucial stakeholders outside the business, including suppliers, service providers, property contacts, and customers. Establish open communication channels with these contacts and explore alternative suppliers to minimize disruptions.
IT Equipment, Data, and Infrastructure: Ensure that your staff has essential hardware and software, such as laptops, tablets, or smartphones, to facilitate remote work. Utilize cloud services, video conferencing tools, and communication apps for seamless access to customer and business data.
Plant and Manufacturing Equipment for Essential Businesses: For physical or manufacturing businesses, identify the necessary equipment, machinery, and vehicles required for essential operations.
Financial Management: Shift to a cloud-based accounting system, like Xero online accounting, for continuous access to key financial data during any outage. This enables you and your advisers to monitor important figures remotely.
Cashflow Management: Implement a process for regularly running cashflow statements. Utilize forecasting to project cashflow position, allowing proactive measures to avoid cash gaps in the near future.
Insurance: Review your existing business insurance policies to ensure they cover all emergency situations. Securing comprehensive coverage is essential for protecting the business in various scenarios.
Leadership: Designate a deputy with a clearly defined chain of command to take over in case the owner/MD/CEO becomes indisposed. Having capable leadership in place ensures the company's continuity even in challenging circumstances.
By incorporating these 10 key elements into your business continuity plan, you can better prepare your company to navigate through emergencies and maintain operational resilience.