Why it’s important for your business to have a contingency plan in place

The unprecedented times businesses are facing goes to show why it’s essential to have a thorough business plan in place, as well as a ‘plan B’. No one could have ever imagined that a large number of UK businesses would have to close their doors, which makes any business owner understand the importance of always being prepared.

Although the current pandemic has had devastating effects on businesses across the country, having a backup plan in place for your business is essential incase more common emergencies occur. Although we can’t always prevent issues such as heating or boiler systems failing, or maybe even our place of work being damaged by flooding; you can have a contingency plan in place which will help you prepare for these events as best as possible.

A contingency plan is put in place to be used as a ‘plan B’, in the event of your business being presented with any serious risks. A strong plan like this can help turn any issues around as quickly as possible, meaning your business may only need to stop operating or alter its processes for a small amount of time.

Putting a contingency plan in place is one of the first steps your business should take, however, if you feel yours isn’t up to scratch or you don’t have one at all; then Ideal Heat Solutions have shared a guide to creating a contingency plan, which should answer any questions or concerns you may have.

How to create a contingency plan

To begin with, you want to create a list of all the potential risks which could affect your business, no matter how small or drastic they may seem. Once you have done that, you can then grade the possibility of each risk occurring and the impact they can all have on how your business operates on a daily basis.

For example, like we have mentioned earlier in the post, your business may be located in an area which has experienced flooding over recent years due to bad weather. A risk like this can obviously have serious consequences on your business, so it’s crucial you factor this into your contingency plan and what can be done if this were to happen.

Who will be affected in the event of an emergency?

As part of your contingency plan, you want to outline everyone who will be affected if an emergency does happen. Your employees will be the first group of people you contact, as they may be unable to work for a period of time. Customers will also be a high priority, as you want to let them know when your business will be back up and running. A post on social media or an email are the best methods of communication.

After employees and customers, it’s then time to take into account any suppliers who may be affected, as well as plumbers, electricians and your insurance company. Having all of the relevant people outlined in your plan, will mean you can work quickly in the event of an emergency.

Communicate your plan on a regular basis

It’s vital you communicate your plan with employees on a regular basis. By doing this, everyone within the business will know the potential risks to the business and the steps that will be taken if an emergency does happen.

Hopefully this post will make you understand the importance of having a contingency plan for your business and some of the steps that go into creating one. If you feel this post or Ideal Heat Solutions guide has been of some help to you, then share your thoughts on social, using #ContingencyAdvice.