Business continuity planning is the process whereby a firm figures out a plan of action that it will take in the case of unforeseen events. The process anticipates risk and helps limit the downside that companies may experience when adverse events occur.
While business continuity plans are common in large public entities, they often go uncompleted in emerging ventures. This is because emerging ventures typically have less resources and more critical day-to-day tasks to complete. As such, business continuity planning often gets pushed aside until it’s too late.
Recent events ranging from Hurricane Katrina to the New York City Transit Union strike show that there are many adverse events that could arise with little or no warning. Such events often destroy businesses that are ill equipped to deal with them.
Emerging ventures must create business continuity plans. Such plans will include backing up work and communicating and/or meeting virtually when required among others. Regardless of the specifics of a company’s plans, it must brainstorm potential situations and determine how it will deal with them before they occur.
Fortunately for emerging ventures, business continuity planning can also have positive short-term effects. By assessing multiple what-if scenarios, businesses often come up with new product and service ideas, or new ways of doing business that can increase profits even when no disaster occurs.
It is never too early to begin business continuity planning, but clearly there are times when it is too late. As a result, sitting down and beginning your plan today is good business.
Since its inception, Growthink Business Plans & Business Planning has developed over 300 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. Growthink has become the firm of choice for venture capital firms, angel investors, corporations and entrepreneurs in the know and offers Business Planning, Venture Research and Venture Capital Services.