Business Continuity Plan – 5 Reasons Why You Need One
It’s true – running a business has never been an easy thing to do. Just staying on top of all the threats – competition, lousy economy, inflation and downward price pressure – is hard enough without the specter of the disasters that are simply beyond your control; the kind that can really put you out of business overnight such as fire, theft and any number of natural and man-made disasters. So how do you prepare for that which is out of your control? Control it! The only way to prepare for catastrophe is with a well-crafted Business Continuity Plan (aka BCP).
Have you thought about a business continuity plan but balked because of the perceived cost and complexity? While there is no denying the complexity of a proper BCP, there are many reasons why your company should adopt one. Here are five such reasons:
- Your company will be much more valuable. Even if you’re not looking to sell your company tomorrow (offer you can’t refuse notwithstanding), the inherent value in your company goes up simply by having a ways and means to ensure it can’t go down in flames – literally. Because a company with a BCP can address a wider variety of catastrophic threats to business, investors will look closer at your company than they will another similar company with no BCP.
- Industry compliance. In the last few years, regulatory bodies have made industry compliance (dependent upon your vertical) harder and harder to achieve to the point of making a well-developed business continuity plan a requirement (again, dependent upon your vertical). And in some cases, not only does your business have to be compliant with regulations, but so do the vendors you use. Having a BCP makes it easier to smoothly run a business.
- Business viability. A report was released a couple of years ago by Symantec, a trusted name in backup and recovery software, that says that 45% of small and medium businesses reported vendor outages due to disaster and a full 53% of those companies switched vendors after that vendor had a catastrophic incident. Need more? 29% of businesses that had a disaster lost “some” or “a lot” of data. Extended downtime and lost customer data… yeah, you’d switch vendors for that too.
- Insurance premiums. We all have insurance, right? Insurance for home, insurance for your car, insurance for your business – including E &OE – basically, insurance for everything. In most cases, you are simply required to carry it. And just because your house didn’t burn down last year doesn’t mean that you aren’t buying fire insurance again this year. A well written BCP can go a long way to proving just how risk averse your company is thereby reducing (or at least stabilizing) your rates.
- Phoenix from the ashes. Seems every day we hear about another natural disaster somewhere in the world from floods in Thailand to earthquakes in Japan to tornadoes in the American Midwest. Gartner, a world-leading business think-tank says that a company generating $5M in revenue each year will lose approximately $2k per hour to unplanned downtime. Furthermore, the US Bureau of Labour reveals that 93% of businesses that experience a significant data loss will go out of business within 5 years as a direct result. Without a business continuity plan, your business stands a distinct chance of being on the wrong side of the ledger when disaster hits. Does your company have what it takes to be the Phoenix that rises from the ashes?
Your company is far too valuable to leave such a risk to chance. If you are looking to implement a business continuity plan, please contact us today. We can help!