June 10, 2024 Avilla Area Chamber Team
Guest post from Dawn Kelly of Silver Horse Social
A systematic workflow is crucial whether your business operates from home or a small enterprise. However, the reality is, things can and do, go wrong. Unexpected events can disrupt your operations. That’s why it’s essential to have a contingency plan in place. Think of this plan and the time you invest in creating it, as your business’s safety net – ready to catch you when things don’t go as planned.
The pandemic is a reminder of how unplanned events can impact businesses on different levels. During that time, which I dubbed the “Pandemic Pivot”, I helped several local small business owners adapt their operations with minimal expense to the seemingly unstoppable changes so they did not have to close their doors. Many did not have a contingency plan designated, so it was the perfect time to map one out. Businesses with contingency plans, or preparedness plans already in place pivoted more quickly and kept their operations running to the best of their ability among the unexpected challenges in a more timely manner.
You may already have documented procedures developed for processing invoices, managing inventory, establishing a chain of command, and other business-related tasks. These protocols are very similar to a contingency plan, as they are clear processes designated for the proper functionality and productivity of your company.
Today, my main focus is to get you on track and in the preparedness mindset. Being proactive in protecting your business as much as possible, regardless of which type of disruptions or events your business may encounter, even if you already have plans in place, is one of your best assets. Keeping your procedures top of mind and reviewing them on at least an annual basis will prove to be highly invaluable.
To create your contingency plan, start by listing potential unexpected events that could disrupt your productivity and operations. Examine each department and the company as a whole, along with daily tasks. Identify the essential jobs, who is responsible for them, how long it would take to recover from each possible situation, and estimate the financial impact of being unable to operate normally. Focus on the areas that drive your business’s daily efficiency and productivity. Remember, your contingency plan is designed to help you quickly adapt to temporary and unexpected disruptions that affect your business.
Some areas you might want to focus on are equipment failures, natural disasters, internet and power issues, supply chain interruptions, online threats, and building/property security – your list can go on and on.
For equipment failures, for instance, examine what needs to happen when your primary machinery or equipment breaks down. How will you function efficiently if your printer or computer is out of commission for more than a couple of hours? How long can you remain on a reasonable schedule when your most-needed machine needs to be repaired or replaced? Who do you contact? Do you use an alternative machine or tool on hand? Do you have a resource that you can rent a backup or an older piece of equipment you can re-install during this time? If you have a contract or a warranty on the machinery or equipment, do you know the terms and conditions and is it up-to-date?
Focusing on natural disasters, consider those that apply to your part of the nation or world first. For instance, in Indiana, a hurricane most likely won’t directly affect us, however, if our suppliers are mostly located in those regions, it can greatly hinder our production and services. If you have employees in a weather emergency, what should they do and in what order should they do it? Have they been properly trained in first aid, safety, and emergencies? Is there a designated area for them to gather in? Who is to call for help or service, if it’s needed? Do you have the insurance company’s contact information readily available in case you need to file a claim? Do you have an emergency kit or kits on hand and accessible that include water, blankets, rain ponchos, flashlights, and/or protein bars?
This is not exactly a natural disaster, but a possible disaster, nonetheless, but think through a water or gas leak or a boil advisory. Do you know who to contact in each of these situations, if necessary, what and in what order, does action need to take place, and who is in charge of doing what? Again, do you have an emergency kit or kits prepared? Depending upon the impact of these occurrences, obviously will remain to be seen, but if you are ready to take them on, thinking of how big they could be, you have enabled your company to adjust much more smoothly.
We’ve all experienced internet and power issues and they can greatly affect your business’s productivity and general operations. What’s your backup plan if you lose internet connectivity or have a power outage? Do you contact your ISP or utility company when this happens? Do you have procedures in place for shutting off or unplugging electronics and equipment in these cases? Are you going to use a generator and/or flashlights? If the outage remains in effect for a certain period, let’s say, longer than 3 hours during a workday, do you close up shop and go home until everything is restored to normal? Consider how your building’s security system, refrigeration, heating, sprinkler, or other systems may be affected in the case of a power outage.
As for your internet connection, Do you have an optional ISP provider, an alternative remote office, or have a MiFi system or remote alternatives in place, so you can still use the internet when your trusted vendor has service interruptions or when you experience a power outage? How will you keep an eye on your online data and accounts? Do you have alternatives set up for keeping track manually of transactions, inventory, and other important information and communications? The solution might include using pre-printed forms and sales receipts, inventory cards, up-to-date statements, reports, or time cards so that the data can be entered into your system later.
How will you notify your employees, customers, vendors, and others about what is happening, to not only keep them informed but to ensure good customer service and communications? Will you use an SMS push notification system or forward your phone to an alternative answering service?
As with any potential disruption, the lack of electricity or internet service has a possible endless list of what ifs, but since you know your business and how it operates, you are the best person to pinpoint what will need attention in these instances to stay on track and to prevent unnecessary financial and time loss.
I touched slightly earlier, on supply chain interruptions. How will you keep your business moving forward if there is a major supply chain interruption that affects your productivity greatly? Do you have alternative vendors in different locations in the nation? Is there something you can create in-house instead of purchasing elsewhere? Are you keeping up-to-date on the analytics of your specific supply chain data? Do you have a surplus of inventory that will help keep you going during a certain timeframe? Again, know your options and stay prepared by knowing your alternative resources and products to use and how long you can operate without specific items.
Data protection and online threats are prevalent in today’s world. How will you protect your business against data breaches, malware, phishing, hacking, and financial loss? Are you actively safeguarding your website, network, databases, accounts, and any data stored in cloud servers? Consider options for remote accessibility or adding a MiFi connection so you can access WiFi using a laptop, tablet, or other devices to help you stay online and able to monitor and secure your important data and transactions.
Keep your employees up to date on potential schemes and scams, ensuring that they know how to handle these types of communications and threats and informing them about how to report them and take the proper action, according to your plans and policies. Determine how you will contact your customers and vendors in the event of a breach or compromise so that they can take proper steps to safeguard themselves.
Regardless of what situation you’ve endured or possibly might, improve your security options and assure your customers and vendors you’ve made upgrades for their safety. Always update your passwords for accounts in the event of a possible or known compromise immediately and be sure to have designated staff appointed to access and use certain accounts that apply to their daily tasks. All logins, accounts, and other data requiring passwords and pins should be updated every few months to combat threats, breaches, and schemes.
As I said earlier, the possibilities for what may disrupt your workflow, income, and productivity are endless, however, you are the expert here. You know what makes your business function at its best and what is needed to keep it running smoothly, and to its highest potential.
Having a preparedness plan, a contingency plan, and processes ready to be quickly implemented, and assuring your staff is well-informed and aware of how to execute will greatly aid in minimizing confusion and downtime but will also keep your business resilient and profitable.
I hope you found this information helpful. If you have any questions or need further guidance, contact Avilla Area Chamber at [email protected].
Wishing you a summer of success for you and your business from Avilla Area Chamber, I’m Dawn Kelly from Silver Horse Social, signing off.