The Importance of a Business Continuity Plan
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10 Reasons Why do you Need Business Continuity Plan?
Written By Habeeb Ehtesham | Jun 30, 2022
Introduction
Have you ever wondered why so many small businesses fail within the first 5 years of operation while others succeed? Obviously, all these businesses started with one clear goal in mind – to make money. Some may say that they fail because of poor leadership which is true. Others may say the lack of capital which is also true. Interestingly, most people because they fail to prepare for the future. That's why you need to ask yourself why do you need a business continuity plan? Becoming an entrepreneur is all about taking risks.
In order to ensure that your business is sustainable, you need to put in place systems that can prevent threats whether internal or external that may try to infringe on your day to day operations. There are many ideas floated around about the management and consistency of your business, however, the following are some of the viable reasons meant to ensure that your business does not face threats that may lead to its collapse.
Why do you Need a Business Continuity Plan?
Understand Why Businesses Fail and Learn How to Keep them Afloat
The grim reality according to the small business owners association is that 49% of all start up business fail. Therefore, you require a business continuity plan in place in order to mitigate the effects of a hard market or unresponsiveness that you never predicted. The plan ensures that your business recovers fast enough and does not experience major downtime when things are not fairing on as projected.
Losses Incurred During Low Moments of the Business
When times are tough, markets tend to be very unresponsive, lowering the sales of most businesses. In case, your business is still new, more money could be sapped, sinking the business into debt. When you have a business plan in place, it prevents you from incurring more losses and boosts your business, allowing it to break even while the situation stabilizes.
Anticipate Catastrophes
Accidents are not limited to natural disasters. They consist of a variety of problems that may strike your company and cripple it. These days, organizations face a myriad of problems from software and hardware hacking to malicious attempts to destroy available mechanisms with the aim of destruction for material remuneration or pride. Thus, it's important to engage in disaster recovery planning measures that can be implemented to assist the businesses.
Protect the Customer
As one of the business's most valuable asset, you need to protect your customer when they visit your business premises and after they leave. When they leave the premises, you are left with their information. You have to safeguard that data so that it doesn't fall into the wrong hands. The contingency plan helps you know what to do in case a customer is faced with a threat within your business premises.
Recovery from Viruses and Different Malware Attacks
Whenever your business is exposed to a huge consumer base, competition is always evident, and unhealthy ones may lead to malicious behavior. Thus, business contingency strategies are there to ensure that you are able to recover lost data or segmented information in case of a crippling threat. The plan assesses the backup solutions in case of threat from malware applications that have made businesses lose millions.
Enhances the Competitive Spirit
In case of a general attack in your competitive space, you can have the upper hand in controlling and managing the customer's needs. Clients always prefer a stable and secure business, thus if they are given assurances against the protection of data, they can be more willing to support your company's endeavors and business engagements.
Maintaining Employee Determination
Whenever the employees are comfortable with the decisions of the management, they tend to be more focused on achieving the set objectives. Since they are assured of their safety by the availability of a contingency plan, they become more determined and enthusiastic about work. The result is improved employee productivity and resourcefulness.
Enables Better Communication
Communication is a major pillar of the business success and lapses in this element, blocks the growth of the organization. An effective plan ensures that employees are effectively directed on how to perform during a crisis.
Builds a Company's Reputation
A suitable business plan ensures all the members are well informed on all fronts about how they are supposed to react. Thus, the customers are able to depend on the institution due to its suitability to manage situations effectively.
Peace of Mind
When you have a continuity plan, you can run your business without any fears because you know how to bounce back even in the worst of scenarios.
Benefits of a Business Continuity Plan
- It enables your business to be well prepared for a disaster
- It gives your business more flexibility so that it can adapt to changes in future
- It stops the staff from panicking in case the business is faced with a threat
- It helps to minimize losses
Why your Business should be Careful When Choosing a Business Continuity Plan
If you fail to adequately allocate resources for the business continuity plan, it may fail and leave you worse than you were before the disaster happened. Have a realistic approach towards contingency planning, set realistic objectives, and involve everyone in the organization to avoid such mishaps.
Conclusion
In case you need help with business continuity planning, contact us today. Having been around since 2001, we have a team of 500 in-house engineers and technicians ready to help you monitor network threats and deal with emergencies when they happen.
Source: https://www.extnoc.com/blog/why-do-you-need-a-business-continuity-plan/