Steps to Consider when Preparing Your Business Recovery Plan

Across the economy, as Covid-19 restrictions ease, many businesses will be returning to a changed environment. Regardless of what form the ‘new normal’ takes, agility and a willingness to innovate will be crucial in the coming months. While it may be difficult to plan ahead or invest with certainty at the moment, decisions still need to be made. It is critical that businesses are able to adapt, react and respond rapidly on an ongoing and sometimes daily basis.

With conventional risks heightened, leaving no margin for error, business continuity planning is now more relevant than ever. All businesses, regardless of size or sector, will need to prepare Business Recovery Plans. Set out below are five key steps to consider when preparing your plan.

Key Steps in your Business Recovery Plan

1. Communicate with key stakeholders —This includes your staff, customers and suppliers. It is imperative that you instil confidence. For your staff, ensure that their health and safety concerns are addressed and that you make adequate provision for social distancing rules, sanitising, etc. For customers, ensure that they can have confidence in your safety measures so that they are willing to visit your premises when appropriate and continue to do business with you. Keep in contact with customers to inform them of your progress. Review your supply chain, identifying and assessing operational risks. Consider using regional suppliers where appropriate.
2. Assess financial risk and build this into your scenario planning — If your business capacity changes, this will impact profitability. You will need to revise your breakeven position and assess the impact on liquidity. Realign your cost base to adapt to the new normal way of trading. Do this for each of your scenarios.
3. Re-engineer your business model — Seize the opportunity to take a fresh look at your business and ensure that it is appropriate for the new marketplace. Can you diversify to meet a specific market need? Have you incorporated IT into your workplace to ensure that your business is competitive? The forced disruption caused by Covid-19 can be used to facilitate an overhaul of work practices and act as a catalyst for initiatives such as introducing flexible working, AI/machine learning, and forming of strategic partnerships.
4. Be resilient —Business strategy decisions made now may long outlast the pandemic. By taking decisive action, resilient leaders will give confidence to stakeholders that the business can make the necessary changes to successfully operate in the post Covid-19 economy.
5. Have sufficient capital to implement your business recovery plan — Ensure that you have availed of all Government Covid-19 supports. Bear in mind that Research & Development incentives, IT assistance and training, are also available along with employment and marketing supports. For business engaged in manufacturing and international tradeable services, numerous programmes to assist in your recovery are available through economic development agencies such as Invest NI and Enterprise Ireland.