The economy is always in a state of flux. While there are indicators as to where it may be headed next, it is, of course, subject to many unpredictable factors. According to the Organization for Economic Co-operation and Development, U.S. economic growth is expected to slow markedly to 1.6% in 2025 and 1.5% in 2026 (OECD).
But uncertainty isn’t just downturns or projections. Rather, it encapsulates trends in both positive and negative directions. Spending patterns by consumers change, new technology advancements disrupt and legislation is passed and overturned. These factors, plus so many other individual factors, make weathering the storm of economic uncertainty challenging for a small business. Throw in an unplanned disaster that disrupts your business, and you’ve got a real threat to your business’s chances of surviving.
Instead of focusing primarily on riding the wave of economic uncertainty to a more stable time, a solution lies in accepting uncertainty and building the best possible business continuity plan to help your organization navigate uncertainty and thrive when you can.
What Is Business Continuity Planning?
To put it simply, a business continuity plan is a system of prevention and recovery from potential threats to a company. Business continuity plans are typically used in emergency situations or disasters with the clear goal of protecting a company’s employees and assets so that there is minimal disruption to day-to-day operations.
Examples of disasters or emergencies that can be mitigated by business continuity planning include, but are not limited to:
Fire
Flood
Weather-related events
Pandemics
Acts of terrorism
Cyberattacks
When disaster strikes, halts to business activity for any period of time result in losses and higher costs as well as the difficulty to start back again. This leads to a drop in profitability, financial loss and the potential for bankruptcy and liquidation. In uncertain economic times, margins could be even tighter, driving the need for a business continuity plan even higher — the faster your business can get back to normal operations, the better.
The best possible outcome in the face of a disaster, and the goal of a business continuity plan, is to get the business back on track with little to no interruption. To make sure this plan is effective, a business must first define all risks that can affect the company’s operations and test the effectiveness of the plan before it’s put into use.
How Business Continuity Plans Can Help
Business continuity planning is sometimes confused with disaster recovery planning but differs in how it can help a business. The key difference is when both plans come into play — business continuity plans are set in motion during an ongoing disaster, while disaster recovery plans help a business recover post-crisis.
To see how a business continuity plan functions to help a business, let’s consider a fire as an example. As part of a business continuity plan, an organization may back up its critical financial or client files offsite, so if something were to happen to the physical location of the business, the important backup information would be able to be referenced or used without consequence.
Another example would be a cyberattack. While these are not often a physical threat, cyberattacks are a large threat to businesses. Part of a business continuity plan would be to engage all employees in cybersecurity best practices, having them participate in regular trainings. Another part could be having an incident response plan, which outlines the steps your business will take if it is subject to a cyberattack.
The main function of business continuity planning is improving risk management. While insurance can be effective in managing some risk, business continuity plans help cover gaps.
What Are the Components of a Business Continuity Plan?
- Business Impact Analysis: Identifying functions and resources that are time sensitive.
- Recovery: Identifying and implementing steps to recover critical business functions.
- Organization: Creating a designated continuity team to manage the disruption in real time.
- Training: Putting the plan into practice and having the continuity team ready and tested for when the plan is needed.
The Best Offense Is a Good Business Continuity Plan
While no one knows what the future has in store ‒ both for the nation’s economy and for your business - what you can control is the plan you have in place. We can help you analyze your risks, connect you with insurance coverage that meets your needs and uncover the right business continuity plan that helps protect you and your people.
Need help putting a business continuity plan in place? Connect with an expert or check out our Business Continuity Planning Checklist.
