As a business owner or manager, you know that there is always something that can put your business in harm’s way or hurt your bottom line. This is simply a part of being in business. But there are steps you can take to minimize any adverse effects from both the external and internal environment. One of those steps is the adoption of 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 usually get to be quite complex, but there are good reasons as to why your company should adopt one. Here are five.
1. Your business will be seen as more valuable
Banks, venture capitalists and other investors tend to err on the side of caution, and will usually seek businesses that appear to be stable and a more viable investment vehicle. Companies with a BCP are often perceived as more valuable, as these businesses can address challenging situations better than those without one. 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 or supplier in some specific industries, it is more or less a requirement to have a plan in place in order for you to be able to capitalize on every opportunity.
3. Potentially lower insurance premiums
Operating a business means continually contending with risk, which business managers must seek to minimize. Many industries and situations require business partners to carry insurance of one variety or another. 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 for you, or at the very least, stable rates.
4. More efficient communication
Developing a BCP involves consistent, company-wide communication in order to be successful. For many businesses, this involves collaboration between team members who don’t work together on a regular basis.
A thorough BCP should foster communication plans for use in disaster situations, both within the organization and without. Most employees will have a defined role, and will need to work together to pull through. Outside of your business, your customers, suppliers and other stakeholders will need to be in contact with you. If your employees know there is a well developed plan for communication, the 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, call us today.