Operating a business is never easy. There is always something that threatens your business, and many disasters are simply beyond your control. These disasters are a part of business, and owners need to be prepared for almost anything. For many companies, the only way to prepare for adverse times is by developing a Business Continuity Plan.
Some companies are hesitant to adopt a Business Continuity Plan (BCP) because of the perceived costs and complexity involved. We won’t deny that plans are usually on the complex side, but there are good reasons as to why your company should adopt one. Here’s five.
1. Your business will be seen as more valuable
Banks, venture capitalists and other investors tend to air on the side of caution, and as such will usually look to businesses that appear to be stable as more viable investment vehicles. Companies with a BCP are often seen to be more valuable, as they can address diverse situations better than those without. As a result, they will make the investor more money over time.
Big companies in a number of industries have had continuity plans for years and many have started to look for suppliers/vendors with continuity plans. Beyond that, some industries and government bodies have made BCP a requirement. If you are a vendor, supplier or even in specific industries, it is a good idea to have one in order for business to run smoothly.
3. Potentially lower insurance premiums
Operating a business is filled with risks, and business managers are often looking for ways to minimize it. One way includes the purchase of insurance – many industries and situations require you to carry it. Generally, insurance providers will give more favorable rates to companies that take steps to minimize risk. A solid BCP will go a long way in showcasing how risk-averse your company is, which could lead to lower rates or at the very least, stable rates.
4. More efficient communication
Developing a BCP involves constant, company-wide communication in order for it to be successful. For many businesses, this involves collaboration between team members who don’t normally work together on a regular basis.
A BCP also fosters communication plans during disasters, both within the organization – most employees have a role, and will need to work together to pull through – and outside – customers, suppliers and other stakeholders will be contacting you. If your employees know how to communicate what needs to be done, effects of the disaster will be minimized.
Recent natural disasters around the globe have highlighted that businesses without a plan will most likely be forced out of business. Having a BCP will minimize the chances of this, while preparing your business for survival.
If you are looking to implement a business continuity plan, or improve on an already existing one, please contact us today. We may have a solution for you.