Many small British businesses can be saved from major catastrophes if they have proper Business Continuity Plans (BCP) in place.  This was the conclusion of a report issued by the British Insurance Brokers Association (BIBA) and the Cabinet Office.

Researched last year, around 96% of the reports respondents felt that having such a plan in place would help keep them trading or reduce the costs they would incur when they would have otherwise likely failed.

Among other results, the report showed that small businesses seem to be particularly at risk from the effects of a major disruption, with only 5% of respondents believing that small and micro businesses have any plans in place.

No one likes contemplating disaster, but after all the time, effort and money you have invested in your business, it seems irresponsible to put it all at risk by not drawing up a BCP.

Plans of course will vary according to the type of business. But the experts agree that any plan should have two essential elements.  Firstly you should clearly identify the key business functions you need to keep operating as quickly as possible in a crisis (and the resources you’ll need to do so). Secondly you will need to define the roles of your team members in the emergency.

Having identified your needs, you implement an action plan to fulfill them.

Remember, you must keep your plan up to date.  A BCP which has not been looked at for five years and never tested is not likely to be very useful when the time comes.  This is an exercise in managing disaster, not form filling.

You should supplement any BCP with Business Interruption Insurance.  This will help cover the loss of income you will incur whilst you cannot operate.  Adequate Business Interruption Insurance may make the difference between surviving a disaster and losing your business.

Before purchasing this type of insurance you must make a careful assessment of what a break in trading might mean to you in terms of finance. You need to factor in possible staff departures and the cost of replacing stock and equipment.

All of this might seem a bit daunting, but investing a little effort could prove to be very valuable in the future if anything were to happen.

Remember that it is important to plan your business at every stage; our Profit Plan on a Page encourages you to develop a business plan you’ll be able to review regularly, and stick to!Read more about it here.