There are many potential threats to a business. Nearly half of all businesses fail when faced with a crisis. If not prepared, factors such as storms, fire, tornadoes, riots, power blackouts, natural disasters, sudden spikes in fuel cost, or data breach could threaten businesses and potentially harm operations.

Case in point is the COVID-19 pandemic that now threatens the existence of thousands if not millions of businesses large or small on a global scale. Before these events happen, you need to make sure that your business has plans that can help ensure its operation even during chaotic events and disasters.

Here are some reasons to consider why you need to prepare a plan for your business to survive unforeseeable and unfortunate events that can negatively affect your business:

  1. It’s a good investment

A business continuity plan lessens loss of revenue. It is not the same as insurance as most insurances only covers costs alone. It is not just an overhead cost but a necessary investment that pays for itself in the years to come. It’s ROI (Return on Investment) will only be seen when a business disruption occurs. 

  1. Natural disasters are becoming more common

Governments may offer financial assistance to affected businesses in times of calamities but no one knows when or how much assistance will be given. It’s important to have money or funds that can be easily accessed to continue operations. As time is crucial for businesses, each day that passes with work stoppage equates to revenue loss. A minimum of 3 months operational expenses is advised.

  1. To protect your reputation 

News of a data loss or system failure can easily tarnish a company’s reputation. According to reports, only 6% of companies that experienced a data loss can survive for the next 2 years. Companies need to review policy and set procedures that will ensure data safety to minimize loss of client trust. It preserves brand value. Brand value is probably a company’s most important asset.

  1. It gives you a competitive edge

Having customer confidence on a company’s capability to weather challenges makes it more attractive to customers or investors. It sets a business apart from competitors that do not have a continuity plan. A plan can make it possible for a company to continue serving its customers when others cannot.

  1. Higher employee retention rate

Employees that are confident that the company they’re working for can continue to function will feel more secure with their job. They also suffer less stress during disruptions as they have a system in place that will compensate for sudden and severe work conditions.

Remember that business continuity plans are seldom really needed or implemented during pleasant situations. Its importance is only highlighted when an organization encounters a crisis. Having a business continuity plan can minimize costs and protect the bottom-line for the long-term. It is a plan that can help businesses to keep functioning or respond quickly to resume operations even in cases of operational challenges. A successful continuity plan involves all members of an organization to work on lessening the impact of an adverse event and to regain normal operations as soon as possible.