The word “recession” is ringing in the ears of many business owners which has them contemplating the continuity of their businesses. Coming out of the pandemic, enduring supply chain issues and transportation obstacles, now is the time to ensure your business can proceed and thrive even in difficult times. The way to do that is by developing an effective business continuity plan. The following elements are essential for this plan:
1. Clearly Defined Leadership
In an emergency, your employees, customers and vendors all need to know who is in charge. This applies to every location in which you operate. These leaders need to be aware of the business continuity plan and know how to execute it when necessary.
2. Thorough Business Impact Analysis
A business impact analysis identifies potential risks and vulnerabilities both within and outside the business. The plan helps to reveal the possible consequences and disruptions your business could face.
3. Effective Responses
Using the awareness from the analysis, you can form appropriate responses and strategies to counteract the potential threats. A comprehensive business continuity plan will take each risk identified in the business impact analysis and develop an appropriate response strategy to mitigate or eliminate the risk.
4. Effective Testing
Review your business continuity plan annually and test the effectiveness of the strategies. As technology improves, strategies may need to be updated to stay consistent with the evolving risks and threats. This is especially true in the area of Information Technology (IT) operations. This includes many components such as networks, servers, computers and wireless devices. Recovery strategies, including manual workarounds, should be part of the business continuity plan and tested and updated regularly.
5. Access to Resources
Following an incident that disrupts operations, resources will be needed to execute the strategies developed in the continuity plan. Resources include employees, technology, data, inventory, utilities and third-party services.
6. Communication
Effective communication can prevent panic and ensure a smooth transition into the execution of the continuity plan. Have drafts of emergency messaging already in the plan so leaders can quickly access the tools. This messaging may include employee statements as well as press releases and social media posts.
Business owners have a lot to consider and proper planning is the key to success. Having an effective business continuity plan, a business succession plan and complementing personal estate plans for all owners is necessary. Contact the experienced estate planning attorneys at Stouffer Legal in the Greater Baltimore area. You can schedule an appointment by calling us at (443) 470-3599 or emailing us at office@stoufferlegal.com.
