One of the biggest hurdles that a business owner can face is business disruption. It can severely damage your company’s financial stability. And while there’s insurance that can certainly lessen the blow, it still wouldn’t be enough to cover the losses of your customers defecting to your competition. Don’t worry, though. There are still ways to recover your business and that’s what we are going to share with you in this article today.
Minimize the Damage – The first thing that you want to do is to minimize the damage that’s currently being inflicted on your business. Whatever it is, you must determine the root cause and stop the domino effect as soon as possible. For instance, tech businesses heavily rely on their network connectivity and equipment. Hence, a solid step towards recovery is to get them up and running again. You can opt to apply for an online payday loan if you need funds fast. We understand why you can be hesitant to take out a loan during this trying time, but keep in mind that the more days you waste being unproductive, the worse it’s going to impact your chances of getting back on your feet.
Analyze the Impact – Once the initial “patch” has been done, it’s now time to really dig deep. Conducting a business impact analysis is crucial in identifying critical and time-sensitive business functions that will then dictate your absolute priorities. You have ideally remedied them already during the previous step, but performing this in-depth analysis will be helpful in checking if there’s an essential function that you might have missed during the initial damage reduction.
Form a Business Continuity Team – After you have conducted your analysis and have identified the main issues, you can then form a special response unit that will spearhead the devising of your business continuity plan and more so, putting the plan into action. Their responsibilities can include (but might not be limited to):
● Collecting and storing information (including documentation for the insurance company, collecting copies of your contracts, backing up the contact information of your suppliers, and more).
● Determining recovery requirements, exploring different recovery strategies, and conducting risk assessments.
● Implementing recovery procedures (such as retrieving valuable data and redundantly backing them up for tech companies).
● Seeking potential relocation areas (if needed).
● Contacting your insurance company and working actively with them.
● And more.
Your business continuity team must also be able to function as a bare minimum skeletal crew in order to keep your business running. Don’t just focus on getting your higher-ranking employees to be a part of this team. It can help if there’s a representative from every division and rank. Include everyone. In this way, you’ll be able to formulate a more informed strategy from the varying perspectives of your company.
Meet With Your Insurance Agent – Speaking of contacting your insurance company, you should set up a meeting with your insurance agent as soon as possible in order to discuss the level of coverage that you can expect as well as the requirements that they might ask of you for your claims.
Coordinate With Third-Party Partners – A lot of companies fail to realize the assistance that third-party partners can provide. The problem is, they are an essential element in an organization’s smooth recovery. For instance, your legal partners, banking partners, and accounting firms all play an important role in restoring critical aspects of your business functions.
Resume Operations – You might not realize it yet, but you can actually resume operations even as you’re still looking for a relocation site, or as you’re waiting for your office to be deemed as a safe working environment again. The secret lies in remote working. This is especially true with companies whose operations heavily rely on technology. In this way, you’ll have revenue coming in again which is always a good sign that your business recovery strategies are working.
Develop Manual Workarounds – On the other hand, you might want to develop manual workarounds for tasks that heavily require technology. For instance, your business has probably relied heavily on automated notifications and alerts, but for whatever reason, that convenience might not be available right now. Hence, you can perform manual labor instead and form a team of people who can be in charge of handling communication tasks for the time being.
Develop a Disaster Plan – At this point, we hope that you’re already witnessing the efforts of your business recovery strategies bearing fruit. In the meantime, why don’t you take this opportunity to develop a more in-depth disaster plan to use in the future. It is inevitable for businesses to encounter various crises every once in a while. In this way, you’ll have actual data that you can work to develop a more reliable protocol in the future. In fact, you can even use this time to test out ideas and possible solutions.
Invest in Your Reputation – Finally, don’t allow this hiccup to bury your business’ reputation in memory. Invest in maintaining (or better yet improving) your online reputation through various digital marketing strategies. Doing your part in helping out your community will also work wonders, especially if your business disruption was caused by an area-wide disaster or global pandemic, such as the case of the COVID-19 at the time of writing this article.
To Sum Up
Business disruption is always a challenging hurdle to overcome for any company regardless of the industry or scale. Fortunately, there are methods in order to help your business recover and get it back to its optimal state.
The first thing that you should do is to minimize the existing damage from spreading. Assess the existing damage and identify other potential risks. For a special business recovery team whose only task is to focus on putting your business recovery strategies into action. Don’t forget to work hand-in-hand not only with your insurance agent but other third-party partners that are all essential to your business recovery. In the meantime, you can explore remote working options and manual workarounds for your employees in order to resume operations as soon as possible. And finally, gear your company for the future by taking this first-hand experience to come up with a more solid disaster plan and investing in your company’s positive reputation.
This is a guest post written by Mike Abelson