Investing in a business continuity plan can be viewed as a kind of insurance into which a company sinks effort and time to assure business survival should disaster strike. However, this viewpoint is too limited. Insurance only pays off when something goes wrong. Otherwise, the premium payments are lost money. Business continuity planning, if done correctly, will increase your profits and business opportunities. It shouldn’t be seen as a cost, but as an investment. Here are two important ways this investment pays off:
It Improves Business Efficiency
Putting together an effective business continuity plan requires careful deconstruction of your business processes. You’ll be forced to assess and prioritize your processes and technologies with the idea that those given the highest priorities must continue to function in a disaster. When performing this analysis, you will spot ways to improve their performance. Why would this happen? Because your attention is directed in places never viewed before, and will likely reveal obvious improvements. You may find that some of the processes with the lowest priorities aren’t needed at all. Jettisoning them will eliminate unneeded business costs. You might also discover and eliminate duplicated processes.
It Creates More Business Opportunity
The 9/11 disaster taught many large businesses the importance of having robust supply chains. If a disaster paralyzes critical suppliers of a company, that company is also paralyzed. It takes time to find alternative suppliers, and business revenue is lost in the mean time. If you’re a small business, having a business continuity plan makes you look more viable as a reliable supplier to larger businesses.
Most fortune 500 companies require their vendors to have continuity plans. The same is true of the government. A business continuity plan allows you to bid for and win lucrative contracts with the government and the largest companies.
If you’re a SaaS business, your customers’ survival as businesses may depend on uninterrupted access to your software service. Without a business continuity plan in place, many potential customers will deem you as too great a risk to become dependent on your service. At least the customers of suppliers have an inventory to partially carry them through a supply chain disruption. However, if a disaster takes down your business, your customers will immediately feel the effect. A business continuity plan allows you to compete for the business of companies who would never have considered you viable before.
If you require assistance in implementing a business continuity plan or have questions, contact us at WHOA.com