Do you have a business disaster preparedness plan? If no, then below are ten benefits of having a business disaster preparedness plan.
Disaster can strike a business at any time. Even a successful business can find it very hard to recover from the harsh effects of natural and man made disasters. So, it’s very important that you have a disaster preparedness plan for your business.
You may think it’s just common sense to anticipate disaster. Yes, it is. But the truth is that, anticipating disaster is different from having concrete plans for recovering from it when it strikes. Now, we will be looking at 10 reasons why having a business disaster preparedness plan will benefit your business and help you sleep well.
10 Benefits of Having a Business Disaster Preparedness Plan
1. It guarantees continued survival
One bitter truth is that disaster can come in many forms, and no business is immune to the disruption caused by disasters. However, having a well thought-out, practical business disaster preparedness plan can help your business cope with disaster and recover fully within a short period.
2. It helps your business gain market edge
Having a business disaster preparedness plan can give you the edge over your competitors. By having one in place, you are passing the message across that your business is determined to deliver no matter what happens. It goes without saying that customers and investors will prefer to deal with a business that has a disaster preparedness plan.
3. It set recovery priorities
When a patient is on the operating table, the priorities are to maintain the blood and oxygen supply, and to keep the vital organs safe. Similarly, when a business has been hit by disaster, the priorities are to maintain cash flow, communication links, and protect or recover the vital assets of the business.
A business disaster preparedness plan will help you decide which parts of your business are the most vital and that should be recovered first in the event of disaster.
4. It boosts staff morale
The awareness that their jobs won’t end suddenly in the event of a disaster will inspire confidence in your staff and help them maintain loyalty. They will always give you their best efforts, since they know that their jobs are secured.
5. It fosters better communication
A business disaster preparedness plan relies solely on communication being able to send the right message to the right destination at the right time. The plan entails how you will maintain communication with your customers, even if your business has been suddenly immersed by a hurricane. If you can maintain good communication in the event of a disaster, chances are high that your business will recover easily.
6. It helps you control insurance premiums
Though insurance is an important aspect of addressing business risks, it usually comes with the disadvantage of huge costs. With a comprehensive and robust disaster preparedness plan, however, chances are that your insurer will reduce your premiums, since they are aware of your commitment to managing risks and disasters.
7. It increases business value
The value of a business hinges largely on its ability to thrive amidst disaster. A business with an excellent disaster preparedness plan is a more valuable and more reliable investment than others. This can be factored in when you need to get a loan, sell some equity, or sell the business s a whole.
8. It serves as a negotiation tool
Understanding the principles of business disaster preparedness can help you spot weaknesses in other business. This can be used as a strong argument during business negotiations. For example, if your main supplier is trying to raise their price, you can request for their business disaster preparedness plan. If you spot any holes, then ask why you should increase your pay, when there may be more reliable suppliers among their competitors.
9. It guarantees your income
Most of the time, your income as a business owner is directly dependent on the health of your business. If a disaster brings your business to an abrupt halt, your income stops. But with a business disaster preparedness plan in your arsenal, your business will continue to operate amid disaster, which means you will continue to earn your income.
10. It gives peace of mind
While other business owners have sleepless nights mulling over what will become of their business after a disaster, you will have rest of mind knowing that your business disaster preparedness is ready. It’s like having a self defense device on you while walking through a path notorious for violent physical attacks; you would nurse no fears since you are equipped and ready to fight for yourself.