Life is uncertain. All you need to do is watch the news on any given day to see how fires, natural disasters, cyberattacks and other unanticipated events can disrupt all aspects of life, including your business operations. Though there is nothing you can do to stop these types of events — let alone other disruptions like IT failures, economic downturns, or pandemics — having a business continuity plan can keep them from significantly impacting your business.
There’s an all-too-common human response to warnings about disasters: People tend to think that it can’t happen to them. When it comes to small business owners, many believe that their size will keep them nimble. When warned of cybercriminals, they think they will remain under the radar or too small to attack. Not only is that not true, but the reality of the situation is that your size may make you a target: 43 percent of cyber attacks are against small businesses, and natural disasters or economic downturns are equal opportunity disruptions.
The question you need to ask yourself if whether you want to be among the 40 percent of businesses that never reopen after a disaster or if you want to put yourself in a position where you’re prepared and ready to handle whatever comes your way. Though there are established strategies for preparing this type of protection, only you know your business well enough to be able to “fill in the blanks” and make sure that the steps are in place to get your business back on its feet as quickly as possible.
Putting a business continuity plan together starts with understanding what its goals are. A business continuity plan lays out an A-to-Z strategy that identifies what your specific business would need to bounce back from an unanticipated disruption. Where possible it includes anticipating what types of threats exist, but more importantly it prioritizes the aspects of the business that are most vital to operations and that need to receive the most immediate attention to restore the business functions.
To be effective, a business continuity plan should address each of the following areas:
You may think your business is too small to need a business continuity plan, or maybe that it is too big and successful to be brought down by disaster. The truth is that every company is vulnerable to the unexpected, and though your size, success, industry, or geographic specifics can affect the type of interruption you experience, that doesn’t mean that those elements will protect you.
When crafting your business continuity plan, make sure that you pay attention to every element of your company and what you would need to do if it were suddenly out of commission. Not only does that mean your physical plant and equipment, but also your personnel, your data, and your access to your clients and suppliers. Without a strategy for each of these you risk the loss of competitiveness, goodwill, profitability, and employees
Creating a business continuity plan is critically important and well worth doing. When it is crafted with the amount of attention that it deserves, it can make all the difference in your business’ ability to get through a disaster. The information below will serve as a helpful guide to help you with the process.
In addition to a business continuity plan, your business also needs a disaster recovery plan. Though many people think that the two are the same, there are key differences, with the most important being that while a continuity plan is a plan of action to keep the business going, a disaster recovery plan addresses restoring the support systems that your business relies upon, including IT assets, communications and hardware. It specifically addresses getting technical operations up and running again.
About Frank Jenkins Jr
Frank Jenkins Jr. CPA is the managing partner of Adams, Jenkins & Cheatham, a CPA practice based in Midlothian, VA. Frank specializes in Consulting services, tax planning, audit & assurances. "I genuinely care about our clients because I have a personal connection with them." He is active in the community and belongs to the AICPA and the VSCPA.
