The Importance of a Business Continuity Plan

If you want your business to outlive you and provide for your family when you’re gone, the time to start preparing is now. The first step is to include your company in your estate planning. The next stage is to ensure that your estate plan includes a business continuity strategy in case you become incapacitated – or die. This is called a Business Continuity Plan.

Here’s how to devise a strategy to keep your company afloat after you’re no longer in command.

What is a Business Continuity Plan?

A business continuity plan is a document that details how a business will operate in the event of an unexpected disruption, such as the owner’s death. The goal of a continuity plan is to keep the business running smoothly — and to protect its value — despite an unforeseen setback.

Why You Need a Business Continuity Plan

There are several reasons why it’s important to have a business continuity plan in place. First, if you die or become incapacitated without a plan, your family may not know what to do with the business — or how to keep it running. Second, if you have employees, they may be left in the dark about what will happen to their jobs. Third, if you have investors, they’ll want to know that their investment is safe.

How to Make a Business Continuity Plan

Creating a business continuity plan is probably not the most enjoyable day you’ll have at work. However, it is a crucial component of having a resilient organisation, and it is critical that you, your business continuity team, and the rest of your workforce take it seriously.

1. Identify the Scope of the Plan

The first step in creating a business continuity plan is to identify the scope of the plan. That is, you need to decide what the plan will cover. For example, will it just cover operational disruptions, or will it also cover natural disasters? What about pandemics? The more comprehensive the plan, the better prepared your business will be for any eventuality.

2. Identify Key Business Areas

The next step is to identify the key areas of the business that need to be included in the plan. This may include the financial, operations, marketing, and human resources departments. Each department will have its own unique needs that must be taken into account in the plan.

3. Identify Critical Functions

Once you’ve identified the key areas of the business, you need to identify the critical functions that must be maintained in each department. For example, the financial department may need to maintain its accounting function, while the marketing department may need to maintain its social media presence.

4. Prepare a Plan for Each Essential Function/Service

Now that you know what needs to be done in each department, you can start preparing a plan for each essential function or service. This plan should include everything from who will be responsible for what, to how tasks will be completed in the event of a disruption.

5. Train Staff, Test, Revise, and Update the Plan

The final step is to train staff on the plan, test it to see how well it works, revise it as needed, and then update it regularly. This will ensure that your business is prepared for anything that comes it’s way.

Keep Your Business Running Smoothly

A business continuity plan is an essential part of any business, and it’s something that you need to start working on today. By following the steps outlined above, you can create a plan that will keep your business running — and your family taken care of — in the event of an unexpected disruption. We have included additional useful links from the NSW State Government and Australian Government below.

Are you a business owner looking for expert financial advice in Byron Bay? Coastal Advice Ballina Byron is here to guide you to make sensible financial decisions so you can live a life of possibility and know your funds are in good hands. Call us or book online to secure your complimentary first meeting today!