Misconceptions and misunderstandings lead to lost profits and unstable futures

One of our Wise friends recently related the following story. He was watching a home improvement program with his 3-year-old son. On the show, a large white kitchen sink and garbage disposal were being installed. As they dumped food into the sink to test the disposal, the child turned to his father and said, “But Daddy, we’re not supposed to put food in the bathtub!” A simple misconception, but it illustrates the way that life can be confusing to one person, while it is viewed in a totally different manner by others.

business continuity plan
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One of the most important causes of serious confusion in the business world is a plan — or lack of a plan — of continuity for your business in times of trouble. It is a critical component of a successful venture, even though most small businesses report NOT having made any such plans.

Business Continuity Plan Definition

A business continuity plan is a report that outlines how a business will keep working during an impromptu disruption in service. A BCP may provide detailed techniques on how business tasks can be kept up for both short-term and long-term outages.

What are the three continuity strategy plans?

Organizations should isolate business continuity planning into three stages:

  1. resolve (planning and prevention )
  2. respond (disaster response )
  3. rebuild (return to normal)

They must likewise consider three degrees of disruption because disasters vary broadly in scope and intricacy.

Importance of Business Continuity Plan

A business continuity plan will help in ensuring that staff knows their roles and responsibilities in case of an unexpected incident and respond following perceived rehearsed and concurred strategies.

What Should a Business Continuity Plan Include?

A business continuity plan outlines the processes and procedures that a company should follow in case of a disruption. A BCP must identify the applicable risks that could cause issues, be they inner weaknesses, cyber-attacks, weather events ­or technological issues.

Plans can also include contact information for emergency responders, key workforce, and reinforcement site suppliers

A business continuity plan needs to be documented and reviewed regularly, just as other emergency measures, such as fire evacuation plans, are carefully gone over and understood. Leaving employees to try and recover after the fact only ensures that there will certainly be confusing.

Often, businesses rely on the fact that they have insurance for illness, disaster, or other unforeseen occurrences, but there are intrinsic parts of your business, such as loss of customer base and market share, that insurance cannot restore.

Why do Organizations Need a Business Continuity Plan?

Developing and reviewing a business continuity plan is a direct investment, not just for your sense of well-being, as a business owner, but for your future, because the costs will continue to add up after an unfortunate incident, whether you are bringing in revenue, or not.

Remember, a business continuity plan is in place to ensure your business moves along as it should in instances where day-to-day operations may have been damaged or altered through no fault of yours. It is a PRO-ACTIVE plan so that you have to suffer as little loss of routine and revenue as possible, while also cutting down on the amount of confusion and misunderstandings suffered after an event.

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Joseph Ferriolo

Director at Wise Business Plans®
Joseph Ferriolo is the Director of Wise Business Plans. He has overseen over 15,000 written business plans during his tenure, raising over $1BN in funding and providing 30K+ consulting hours for startup companies.

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