Business continuity: are you prepared?

SMEs, as we’re regularly reminded, are the UK economy's engine room. That's why business continuity is important - so they can keep on doing what they do

And with so much riding on small businesses making money and creating jobs, it’s vital they’re able to do that without something dragging them down.

So, it comes as a surprise to learn that the majority of SMEs are not only blissfully unaware of their important role but are oblivious to the risks of being unable to do it. And have no idea how to protect themselves if something means they can't.

Line of most resistance

That's a bit odd. Why make life more difficult for yourself?

Surely, if at all possible, you'd want to make business continuity a priority and minimise any potential effects of unforeseen circumstances on day-to-day operations. That’s just common sense, isn’t it?

And yet, when Axa did some research back in 2011, they found that a quarter of SMEs couldn’t name a single risk to their business. Not one.

Half didn’t have a business continuity plan in place; with some not seeing the need to have one at all. Only a third had any kind of business interruption insurance.

This, despite a year of riots, strikes, bad weather, technology outages and endless supply-chain problems from Asia.

What other reasons do you need?

Why business continuity matters

Now, we know what you’re thinking.

It’ll never happen to you, you already have all the business insurance you could ever need and this is just another hassle/expense you can do without.

Yep, OK, fair enough. But stop for a minute and think – really think – about how your business would cope if outside forces stopped you from trading. How many days can you afford to be out of action before it impacts your revenue? Can you do enough to keep your clients onside in that time?

One thing's for sure: your customers don’t want to hear about a burst pipe or a snow-blocked road or a fire or that meteorite. They just want what they’ve paid for and they’ll quickly move to a business that can help if you can’t.

Keep on running

Thankfully, there are things you can do. And they needn’t be the financial or logistical burden you might think.

You could start by finding out more about business continuity by taking a look at the Business Continuity Institute website. There’s a wealth of advice on there as well as information about relevant events they run.

In the meantime, here are some practical things you can do today:

• Devise a simple ‘unexpected circumstances' plan. This should detail who does what, when and where if things go awry. If you’re a sole trader, investigate the cost and location of shared working spaces.
• If you have the means, consider a second business premises. If you don’t, at least back up your files on a second server or make use of cloud technology. It’s cheap and easy.
• Set up remote working for your employees. Again, this isn’t expensive and is relatively quick and easy to do.
• Buy some business interruption insurance. It covers the cost of setting up your business elsewhere if needs be and covers the lost revenue or profit from the time you couldn’t trade. You can talk to us about this, we’re happy to help.

Game of chance

Putting some simple measures in place could mean the difference between the success and failure of your business if disaster strikes.

While it’s true that it probably won't ever happen, there’s a big difference between assuming it won’t and doing nothing, and accepting it might and doing something.

Best not take the chance, eh?

Image used under license from Shutterstock.