There is no denying that the COVID-19 pandemic has presented the world with some serious threats. According to the World Health Organization, the total number of coronavirus cases has surpassed 110,000. Estimating when the effects of this epidemic will subside is difficult.
Meanwhile, the world is experiencing terrible economic effects as a result of the pandemic. Whether it is a disruption in the supply chain, trouble in business travel, or maintaining social distancing, the situation seems out of hand and is forcing companies of every size to dust off their business continuity playbook.
That is to say, smart leaders and executives need to think beyond a definition for a simple business plan. They must focus on adapting to their business continuity plan to not only protect their employees but also to stabilize the business and serve customers.
Here, we have outlined some necessary components essential for business continuity during and after the pandemic.
Components of Business Continuity Plan for Pandemic
Put Your Employees First- Safety and Engagement
As mentioned above, the core purpose of a business resilience plan lies within the well- being and the health of your staff and employees. In this challenging time, employees are expecting their leaders and government to address their problems by not only engaging them but also implementing a contingency plan to help them face this catastrophe.
One of the best ways to do it is to make adjustments in the work schedule or incorporate flexible work policies and arrangements so that employees can work remotely. Plus, to make continuity plan COVID-19 work, businesses and companies can reallocate resources, reorganize teams, and, most importantly, establish policies that support employees’ well being.
Moreover, businesses, considering the risks, can maintain regular communication with the health authorities to align with their policies and navigate through this crisis.
Reconstruct Strategies for Business Continuity
Reshaping strategies is vital to ensure business continuity. Businesses are going through a significant disruption, whether it is about operational efficiency, staff shortage, stock market crash, or business underperformance due to the COVID-19 crisis. Plus, the supply chain crisis and challenges have spread from China to the US and Europe. There is a dramatic shift in consumer demands in all sectors, including automotive, manufacturing, and retail.
A business continuity plan for a pandemic is a must to face the challenges. Companies can incorporate the following strategies.
- Evaluate operational and financial risks to prevent the repercussions of an economic downturn. To do that, companies need to keep an eye on cost escalation and its impact on renegotiating new terms and product margins. This will help them come up with a better COVID-19 contingency plan and keep up the financial stress to prevent long-term implications.
Moreover, it is also crucial for companies to scrutinize in-house pressure and vulnerabilities that may have an impact on potential customers, suppliers, and alliance partners.
- Determine the effects of COVID-19 on the business plan and its budgets. Stress-testing the financial plans and strategies for different scenarios is critical to assess its potential impact on business performance. If a company’s budget or business plan is irrelevant to meet the needs of current and future scenarios, the executive must modify them to stay in the race.
- Evaluate cash-flow pressure through testing short-term liquidity. Instilling short-term cash-flow to predict intervening factors is one way to do that. Plus, it is important to maintain the discipline to manage inventory buildup and receivables.
Maintain Communication with Stakeholders
No business or company can craft a business resilience plan unless it takes the relevant stakeholders into account. Transparent communication at the right time can play an essential role in reshaping business strategies and securing on-going support from regulatory authorities and potential investors and customers. For instance,
- If a business is not able to meet contractual obligations due to production disruption, it must take proactive actions like revisiting timelines or communicating this to customers before time. It will help businesses mitigate risks of punitive liabilities that come with disrupted customer obligation.
- Make sure to review current terms on business loans to not only identify debts but also to avoid major technical breaches. It is a great way to communicate with investors and stakeholders about critical refinancing terms and amendments.
Switching to Ecommerce- A Recovery Plan to Strengthen Business
Stay-in-place orders by government and social-distancing measures have led businesses to move their functions and the entire workforce to a new platform. Put simply, ideas like online business and “work from home” are skyrocketing and have become an integral part of the COVID-19 business continuity plan.
Many businesses are using all their avenues to provide their customers with an online service. Fitness studios, for example, are taking advantage of online classes to make adjustments in their business contingency plan. Similarly, retailers are selling online to expand their reach to the customers and adapt to a new service plan.
Moreover, businesses like spas and restaurants can also modify their offerings by delivering their products or services online. It will not only enable businesses to increase their rapport and stabilize cash-flow but also improve brand loyalty. That means serving online is a global service model that you can incorporate into your business contingency plan.
By switching to eCommerce, businesses can strive in a pandemic-induced economic crisis. Whether it is delivery services or online classes, crafting a business contingency plan with a revamped approach can help it emerge stronger during and after the pandemic.
OGS Capital Can Revamp Your Business Continuity Plan
At OGS Capital, we believe a preemptive business planning always goes a long way. A comprehensive business continuity plan not only helps protect the company’s core assets during an outbreak, but also preserves peace of mind for leaders, entrepreneurs, and employees.
Although no business plan guarantees full resumption of operations, making a robust framework for responding to deadly crises like COVID-19 helps a team handle disruption and nuances to business operations.
This is where OGS’s competent business consultants play their role. They help you create a plan that targets your business needs and enables your company to hold its ground during and after a pandemic like COVID-19.
We are available 24/7. Give us a call or fill the form below to improve your business continuity plan before it’s too late.
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.