10 steps to Business Continuity Planning

Business continuity refers to the process of developing a plan for how your company can sustain its operations in the face of a disaster or disruptive event. It serves as a backup plan, ensuring that you can continue trading even when your regular offices, workspaces, or equipment are unavailable.

10 key elements to include for your ongoing business continuity plan

Digital communication and cloud technology have given us the ability to access company information, applications and communication channels. For many businesses this will allow you to keep at least some of your usual day-to-day operations ticking over.

When creating your business continuity plan, there are several crucial elements that you must consider:

1. Location and Workspace: Assess whether all employees have reliable internet connections for remote work. Establish guidelines for maintaining workflow and schedule regular online check-ins to set priorities.

2. Key Products or Services: Determine which products or services your business can offer during the disruption. Identify a core set of offerings that can generate revenue and cash flow, classifying them as essential activities.

3. Key Staff and Resources: Identify the core personnel required for your company's operation. Based on essential activities, determine key management and staff members. Consider resource needs, approval processes, and critical knowledge sharing within the team.

4. Key Contacts and Connections: Compile a list of external stakeholders critical to your business. Ensure open communication channels with suppliers, service providers, property contacts, and customers. Explore alternative suppliers to minimize disruptions.

5. IT Equipment, Data, and Infrastructure: Identify the necessary hardware, tools, and software to facilitate remote work. Provide staff with laptops, tablets, or smartphones and leverage cloud services, video conferencing, and secure access to customer and business data.

6. Plant and Manufacturing Equipment: For physical or manufacturing businesses, assess the equipment required to sustain operations. Consider machinery, hardware, and vehicles necessary for essential business activities.

7. Financial Management: Establish methods to access key financial data during an outage. Consider migrating to a cloud-based accounting system for uninterrupted access to financial information. Platforms like Xero online accounting enable you and your advisors to monitor crucial figures.

8. Cash Flow Management: Develop strategies to maintain a positive cash flow position. Implement regular cash flow statements and use forecasting to project future cash flow. Proactively address potential cash gaps.

9. Insurance: Review your current business insurance policies to ensure coverage for emergency situations. Understand the scope of your policy and take steps to secure your business in all scenarios.

10. Leadership: Identify individuals capable of assuming leadership roles if the owner, managing director, or CEO becomes unable to run the business. Establish a clear chain of command and designate a deputy to ensure continuity and stability.

By incorporating these ten elements into your business continuity plan, you can prepare your company to withstand disruptions and maintain operations during challenging times.