5 good reasons why small businesses need a Business Continuity Plan

Failing to plan is planning to fail

When I ask small business owners about their position on business continuity planning, they often say that  is that it’s not something they are focused on, or that it is something they have thought about but not implemented. If you are the owner of a small business, then here are five good reasons why  you should take Business Continuity seriously.

• Regulatory – In some areas of business, regulatory demands are high and business continuity planning is a requirement. Examples are financial services, insurance, utilities and public transport.
• Customer Demand – In an increasing number of cases, evidence of business continuity planning is demanded by the customer. Larger companies are increasingly dependent on their suppliers and with the continued emergence of just in time processes, suppliers can be a significant risk to their own business continuity. Thus, tenders and contracts often demand that potential suppliers prove their resilience.
• Investor Requirement – Organisations that fund or support start-ups and businesses undergoing expansion are risking their capital. Having in place a business continuity plan is a means of reducing some of the risks to which that investment is exposed.
• Governance – For many small businesses, it is a maturity thing. Once the owners recognise that they are in it for the long term, then they automatically start thinking about how to protect their long term investment in the business. The longer a business is operating, the more likely it will be exposed to a disruptive event, so it makes sense to plan how to survive the disruption.
• Past Experience – Lastly, the impetus to start planning often comes after the company has experienced an adverse event, or has seen the effect an adverse event has had on others.

Summary

Regardless of the motivation for instituting a system of business continuity planning, the important point is that businesses of all sizes should take this seriously if they want to survive and prosper in the long term. You may choose to take on a the task yourself, or you may engage the services of an external company to provide expert advice.

Whichever route you do choose, do so now because you never know when you may need to invoke your Business Continuity Plan.

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