Business Continuity Strategy: 4 Steps to Protecting Your Business From Disaster
Did you know that around 800,000 businesses closed permanently between 2020 and 2021? These most recent years have highlighted how big changes can devastate businesses. It’s now more clear than ever that every business needs a sound business continuity strategy.
A continuity strategy is your backup plans and processes to deal with potential threats to your operation. Some strategies focus on increasing productivity, and some focus on sustainability. All continuity strategies run on the same formula: work hard today and avoid tomorrow’s disaster.
Keep reading to learn about our four steps to a successful strategy.
1) Assess Risks to Your Business
No business is risk-free, external events threaten individual freelancers and major corporations. If you run a small enterprise you probably know where your potential weak points are. A freelancer becoming too sick to work or convenience stores losing their suppliers also count as potential threats.
Risk assessments are important for businesses of all sizes. Sit down and brainstorm or have a meeting to determine all possible weak points. Larger businesses can benefit from hiring experienced risk management consultants to handle the assessment.
2) Develop Responses and Reserves
You will never be able to predict every possible challenge, but you can prepare for those that are easier to imagine. Prepare a detailed, step-by-step set of processes to follow in the event of each risk discussed in step one. For manufacturers, services, and stores this may include having a list of backup suppliers for high-demand parts and products.
Almost all businesses use computers. Stay prepared by making sure your data is backed up and your cyber security is up to date. Having professionals on standby is useful to this end. Check out zjak.net for more information.
Insurance and cash reserves for emergencies are also so useful that they’re almost necessary. It’s necessary for businesses and companies to have reserves for emergency purchases, legal fees, and other expensive disasters.
3) Test Your Business Continuity Strategy
After forming a business continuity plan you have to test if it’s going to work. For larger businesses, this means informing staff about emergency protocols and training them to follow through with the plan. For instance, a supply chain manager will give his staff the list of backup suppliers and teach them when to contact these suppliers.
For an individual, it can be as simple as finding a doctor and going for a check-up.
4) Maintain the New Standard
For business continuity strategies to be effective, the managers and staff must always be ready to follow through at a moment’s notice. You’ll also need to continually update the plan if your back-ups change. Regularly reminding your staff, updating plans, and dry tests are wonderful methods to employ to this end.
Build a Strong Business Today
A business continuity strategy requires assessment, detailed planning, and diligent implementation. It’s worth the effort. Taking the extra steps today may save your business from collapse tomorrow.
A continuity strategy is about helping your business survive the bad times. If you want to know about making your business thrive in the good times, check out the rest of our business and investing articles now.
