The Importance Of Business Continuity And Contingencies

January 24, 2021
What is business continuity? Why should business owners understand it? It is about longevity of your company through preparations that…...
The Importance Of Business Continuity And Contingencies featured image

What is business continuity? Why should business owners understand it? It is about longevity of your company through preparations that bring peace of mind for you and your team members. Here are four top considerations...

4 Vital Factors Of Business Continuity Planning

In the world of business, management and control should be a top priority. While you cannot control absolutely everything at all times, you can manipulate certain aspects of your operation.

All big companies are run by leaders and executives who know how to keep a tight fist on things and know when they’re losing their grip. You cannot expect to create a global company if you don’t know:

  • What contributes positively and negatively to your operation
  • The current status of your financials
  • How to hire the right individuals with the right skill sets

As your business grows and evolves, you’ll realize that there are some roles where you fall short and others will likely need to take control. That should not hinder overall productivity.

Before your opening day, you should have a business continuity plan. Also a contingency plan should results dictate a shift to improve. Remember, all things will not go exactly the way you hope it will every single time. There will be a need for some changes.

If you have a strategy and forecast in place, then it makes any changes a little smoother and less awkward. For now, let’s quickly run through the importance of business continuity and contingencies.

Plan To Impress Investors

When banks and angel investors look through your business plan, they’ll want to be impressed. Investors look for several factors – even the most specific things – because they’ll want to ensure that they won’t be wasting their money. If you have calculated contingencies due to unforeseen issues, then they will affirm their positive decision. 

Make Safety And Repair Processes A Habit

Advance consideration of safety and repair options should be a priority in every business. It’s not something that should left to the time of an actual crisis or emergency.

Safety procedures should be constant and consistent at all times. You should designate staff members to manage updates and trainings for your entire team.

Regarding repairs, have all the preparation done prior to when they are needed:

  • Make the contacts
  • Arrange pricing
  • Understand probable timelines for all potential repairs that could be needed

If you are in manufacturing or product production, you should consider having a close relationship with a CNC repair technician to fix issues in your factory area. It’s a case of planning out meticulous facets of your operation and staying functional.

Disasters Come In All Shapes And Sizes

You just never know what might happen. Most typically think of things like:

  • Valued employees leaving to work elsewhere
  • Decisions that lead to losses
  • Negative PR

You should also prioritize the possibility of legal troubles and cybersecurity issues when it comes to needing contingency plans.

You cannot prepare exactly for random events and acts of God. Natural disasters could strike at any moment. Lack of proper insurance coverage could be the difference in the future existence of your company.

Even Seemingly Insignificant Hurdles Can Be Impactful Toward Business Continuity

The idea of having to stop working for a week or being hindered by a small personal issue can seem unimaginable. You may never need to worry about anything like this.

On the other hand, small problems can lead to much bigger issues without a continuity plan and detailed business continuity management.

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