Every business, no matter how big or small, operates under dynamic market and economic forces. This means every business needs a plan on how it will continue the show when unforeseen disruptions happen. As an MSME owner, having such a plan is crucial to weathering unpredictable storms, much like the Covid-19 pandemic.
In a nutshell, a business continuity plan (BCP)highlights how a company can continue operating in the event of unplanned and sudden crises. Such a plan details the business’ strategy on continuing service/product delivery after a disruptive incidents such as natural disasters, fire, etc.
Here is why MSME owners must always keep a BCP handy.
Downtime is expensive
The biggest reason for preparing a BCP is to minimise downtime, which can be especially damaging for small businesses. Say, you lose access to business-critical data during a disaster. This is going to have a direct and adverse impact on employee productivity and the company’s bottom line. Because there is a high cost attached to downtime, it’s important to have a plan in place to reduce it and continue operations in the face of a disruption.
To maintain employee productivity
A company is as good as its employees. Especially during a crisis scenario, their mental well-being may be impacted, along with their productivity. Formulating a business continuity managementstrategy can help avert this problem. It can include tactics such as encouraging virtual connections, employee leaves, interactive discussions, etc., to stabilise the office environment and prioritise employee well-being. If a disruption occurs, you can put these into action immediately and maintain overall productivity.
Additional Read: Top 5 Challenges of MSME Loans
To avoid critical risks
When disruptions happen, issues like a shortage of raw materials, restricted funds, staff problems, etc. can crop up. For MSMEs, business-as-usual can then become challenging. With a continuity plan, you can tackle these efficiently. Take a stock of such threats in advance, understand how they will affect your company, and be ready with a plan when the time comes.
To keep alternatives ready
If the pandemic has taught businesses anything, it’s the power of adaptability. After all, you can only stay in business as long as customers purchase from you, which is only possible by adapting to sudden disruptions quickly. When creating a BCP, sit down with your team and think about alternatives to tackle a crisis. When a disaster occurs, you will need to take immediate action to keep your business afloat.
At Tata Capital, for instance, we’ve given our customers the option to secure funds digitally after the pandemic. Facilities such as our online business loan EMI calculator, quicker disbursals, digital applications, etc., have allowed our customers to access funding from home amidst strict lockdowns.
Additional Read: Best Way to Get an MSME Business Loan
Lose no time in investing in a business continuity strategy. For your funding and business loan needs, come to Tata Capital. Get attractive business loan interest rates and customised repayment options with us. Explore more here.