Unless you’ve experienced a disaster that threatened your business, it’s hard to appreciate the importance of a sound business continuity plan. All too often, people consider disasters as remote events, and don’t give business continuity the attention it deserves. Their thinking is further influenced by a number of misconceptions, or myths, that reinforce their decision to postpone or forego setting up a business continuity plan. Here are three business continuity myths:
There’s No ROI in a Continuity Plan Other Than Surviving a Remote Event
A disaster isn’t necessarily a remote occurrence because it can happen at any time, and business survival in the face of a disaster should be sufficient motivation in itself. However, there are other aspects to having a plan that can help your bottom line. A business recovery plan gives you leverage to negotiate a more favorable business insurance rate. Having a plan in place reduces the size of your insurance claim when disaster strikes. This makes you a lower risk to the insurance company and their rates should reflect this fact.
A business continuity plan also makes you a more reliable supplier for other businesses. You can guaranty you’ll deliver regardless of disruptions or disasters. Make this one of your selling points.
Small Businesses Aren’t at Risk
The same disruptions or disasters that affect large businesses also affect small businesses. One disaster many small businesses feel exempt from is a cyber attack. Why would a hacker target a small business when there are bigger fish out there? Hackers are often opportunists. When they detect a weakness, they’ll exploit it regardless of the size or success of their victims. In fact, small businesses tend to have weaker security in place, which makes them attractive targets.
If You Aren’t in a Natural Disaster Area, Business Continuity Isn’t Needed
A natural disaster isn’t the only type of disaster. A fire could destroy your place of business or a broken water main could flood and destroy your offices, records, and servers. Alternatively, a water main break could damage your foundation and cause a partial collapse of your building. A gas leak could also take down your building. A break-in followed by theft or vandalism can destroy critical business records and data.
If you have questions about why you need a business continuity plan or about how to implement one, don’t hesitate to contact us at WHOA.com.