For CEOs, the constant threat of a cyberattack, natural disasters, global pandemics and volatile markets presents unprecedented challenges to doing business. According to data from the Bureau of Labor statistics, the failure rate for small businesses is 20% in the first year. In the second year, that number increases to 30%, and by the end of a decade, around 70% of small businesses fail.
If you understand how and why businesses fail, there is a lot you can do to ensure that yours isn’t included in these grim statistics. A strong business continuity plan can help mitigate the effects of a catastrophe and ensure quicker recovery when things are not going as predicted.
Here are 6 reasons to have a business continuity plan ready for when disaster strikes:
- Minimizing losses and controlling debt during business slowdowns.
When times are tough, sales decline, making it is easy for business owners to slip into debt to keep things going. A business continuity plan can outline contingencies that help prevent losses and boost your business while the situation stabilizes.
- Anticipating the unthinkable.
Catastrophes are not limited to natural disasters. In today’s business environment, organizations face a minefield of potential ruin. Solid disaster recovery planning can make all the difference when it comes to keeping the lights on during a crisis.
- Protecting your customers.
Not only is protecting customers the right thing to do, without them, you have no business. A business continuity plan can outline ways to protect customers throughout their journey with your company. This includes safeguarding data so that it is protected from both internal and external threat actors.
- Speeding up recovery in the event of a cyberattack.
According to a report from the Ponemon Institute, more than 67% of companies with fewer than 1,000 employees have experienced a cyberattack, and 58% having experienced a data breach. The same report found that 60% of small businesses risk going out of business due to hackers. These days, you count on a cyberattack at some point. A business continuity plan can help you act quickly when it does.
- Protecting and reassuring employees.
You count on your employees to produce quality products, provide exceptional service and work diligently to fulfill the company mission. Having a thorough and well-communicated contingency plan can go a long way toward reassuring your employees that you know what you’re doing in a crisis. It also helps them know their role when disaster strikes to allow them to aid in a successful recovery. In these turbulent times, no one is taking job security for granted. Happy and secure employees can be much more focused on achieving organizational objectives. If they know you’ve got their back, they’ll have yours.
- Providing peace of mind.
Business leaders have enough to worry about – and disaster can’t always be predicted or prevented. However, with a solid business continuity plan, you CAN have a measure of peace of mind knowing that the next time catastrophe strikes, you’ll be ready.
Whether you need to put together your first business continuity plan, or update an existing plan, our consultants can get you started. Contact us today.