Revenue and expansion plans are necessary for a small business to grow, but they are just some of the variables that are part of the planning equation. It is also a good idea to consider creating a business continuity plan that formalises the steps you can take to keep processes running even in the event of a sudden crisis.
Planning will help keep your company going and employees will not lose direction if anything happens to you or one of your business partners. It gives assurance that work will continue and that in the event of problems, there is a clear way forward.
Planning is the worst part
First, consider any potential threats your organisation may face. Also consider the case where, as the owner, you will not be able to supervise and organise the day-to-day activities of the company or carry out your usual duties. Then create a plan outlining the process of responding to these threats and protecting operations during and after the unexpected situation.
Parts of the plan
Both business continuity plans and contingency plans are usually aimed at disaster recovery in cases of, say, fires, earthquakes or hurricanes. While these natural disasters may be devastating, economic recovery can occur more quickly if there is a clear road-map. In the current COVID-19 pandemic, emergency planning must adapt to the new challenges posed by the situation. Therefore, your plan should be based primarily on the type of risk you are facing. Each risk has its own set of problems and solutions so the company can continue to operate.
Team roles and responsibilities
Another element of the plan should be to document the team that will deal with the situation. In the event of the incapacity of a small business owner who is responsible for organising and running a business, a lawyer, accountant and key management staff are likely to be available. Plans should clarify job responsibilities and document which individuals are responsible for securing and restoring each function of the organisation - from the most important to the most common tasks. They should further describe the responsibilities of that function in order of importance. It is also important to ensure all documentation is up-to-date, accessible and clear.
Backup and security
It is advisable to select some reliable and trustworthy employees who will be cross-trained in key functions of the company. At the same time, they will need easy access to important functions and assets, such as bank accounts and payroll. Using a password vault, together with a set of encrypted files, will provide employees with the information they need and keep this confidential information secure until it is required. Other questions you should ask yourself are:
- Is business insurance in place?
- Do you have a list of where all your employees live?
- Do you have their contact details?
- Have you stored data in the cloud if physical locations were to be destroyed?
One of the main benefits of the plan is that it allows you to train your team to execute it in scenarios that may affect your company. Thus they will receive important training on how to work in a crisis and at the same time often acquire a deeper sense of belonging to the company.
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