Business Continuity Plan – What Is It, And How Does It Work?
Your business can come across a disaster or a host of negative situations for the business, which negatively affect the work processes of the business. In such cases, business continuity planning is one of the most necessary things to have. A business continuity plan will enable you to stay prepared for any kind of negative situation for the business. This shall further ensure that the business is able to work the same.
In this article, you will learn about a business continuity plan and what are its major features. In addition to that, you will also learn how a business continuity plan works for a business. Furthermore, we will also discuss the major benefits of having a business continuity plan for your business. Finally, we will guide you with a step-by-step procedure on how to create such a plan for your business and stay prepared.
What Is A Business Continuity Plan?
According to Hubspot.com,
“A business continuity plan outlines directions and procedures that your company will follow when faced with a crisis. These plans include business procedures, names of assets and partners, human resource functions, and other helpful information that can help maintain your brand’s relationships with relevant stakeholders.”
The major goal of a business continuity plan is to deal with the situations that disrupt the business. These disruptions can be both minor and full-blown threats. The plan allows you to plan for contingencies ahead of time.
Such plans, as well as preparations according to those plans, can allow your business to continue operations even at times of high risk. Having a plan will help you to deal with the risks and either prevent or mitigate them.
Some of the major disruptions that can affect the business include a natural disaster, a man-made disaster, a network breakdown, a cyber attack, and various other factors. These situations are large enough to disrupt organizations of any size. In such situations, a business continuity plan benefits the business by providing it with a procedure, processes, and tools. These will help the business to operate properly and recover within a short span of time.
Read More: What Is a Franchise, And How Does It Work? – Examples, Benefits & More
How Does A Business Continuity Plan Work?
According to VMWare.com,
“Business continuity planning is critical because without it, an organization faces downtime and other problems that could damage its financial health. In major disasters, a lack of a business continuity plan could cause irreparable financial harm that might ultimately force a company to permanently close.”
In a business continuity plan, the business defines all the risks that can affect the operations of the organization. Hence, the plan becomes an important part of the risk management processes of the business. Some of the major risks include disasters, network breakdowns, cyberattacks, and more.
Since threats and disruptions include a loss of revenue and higher costs for the business, it can lead to a loss of business profits. Furthermore, it is also not a great thing for your business to rely on insurance alone. Also, since the business does not cover all the necessary costs, as well as the ones associated with customers, a business continuity plan is necessary to deal with such situations.
What Are The Benefits Of Having A Business Continuity Plan?
The disasters in a business can be of any size and degree and can even be catastrophic for the business. Hence, a business continuity plan is one of the most essential things you can have for your business. The plan will help you to identify all the major risks that can affect the work processes of your company.
According to Investopedia,
“BCP is typically meant to help a company continue operating in the event of threats and disruptions. This could result in a loss of revenue and higher costs, which leads to a drop in profitability. And businesses can’t rely on insurance alone because it doesn’t cover all the costs and the customers who move to the competition.”
The following are some of the major benefits of a business continuity plan:
- It helps to continue operating even in times of disaster. However, it is different from a disaster recovery plan.
- Helps in improving risk management of the company.
- It can stop disruptions in the organization from spreading.
- Helps to mitigate downtime of business technology and networks.
- It helps to save a lot of money, time, and resources.
Business Continuity Plan – Steps To Create
Here are some of the major steps you will need to follow if you want to create a business continuity plan:
1. Business Impact Analysis
According to Investopedia,
“An important part of developing a BCP is a business continuity impact analysis. It identifies the effects of disruption of business functions and processes. It also uses the information to make decisions about recovery priorities and strategies.”
Here, your business managers will need to identify the functions of the plan as well as related resources for the business, especially the ones that are sensitive to time.
2. Recovery
In this portion of the plan, the planner will need to identify the steps and implement them. This will include the steps for recovery as well.
3. Continuity Team
You will need to create a continuity team here. The job of the team will be to devise a plan to manage the disruption of the plan.
4. Continuity Training
You will need to train and test the continuity team here. The members of the team will also need to complete various exercises for the application of the plan.
Read More: Intrapreneurship – Definition, Importance, Duties, And Responsibilities
Summing Up
Hope this article was helpful for you in getting a better idea of what a business continuity plan is and how it can allow your organization to recover quickly from disasters or, in the best cases, prevent them. The plan is a great option to keep your personnel prepared, save your assets, and ensure the business starts functioning fast.
However, you will need to test your business continuity plan from time to time to ensure that there are no gaps in it. To find out gaps, you can create dummy situations or drills with your employees. Do you have any more recommendations on how to create the best business continuity plan? Share your ideas with us in the comments section below.
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How To Build An Ecommerce Website To Boost Your Business
Making new Ecommerce websites are accessible nowadays. Those who have a business based on online media have these Ecommerce websites. It is just like a book of business. You have bought a pair of shoes, perfumes, dresses, etc. They have sent your ordered items to your doorsteps. It seems easy when you are looking at things from the view of a customer. But you will feel challenged when you feel you are the business owner, and you have to send the product to the customers’ doorsteps. However, serial entrepreneurs are doing the most demanding things and maintaining ecommerce websites. Benefits Of Using Ecommerce Websites Serial entrepreneurs always use ecommerce websites to boost their business. However, if you are also thinking of opening a new ecommerce website, you will get a series of benefits. First, ecommerce websites have an option to earn a considerable profit. Now make a website and get the benefits. Now, we will tell you the advantages of opening Ecommerce websites. Go through the book of business and learn the factors. 1. Fast Buy As the owner of the ecommerce website, make your customers satisfied. So, it is easy for them to purchase products in some time. It takes only a minute to buy the product. For example, suppose one of your customers finds a particular product if the person gets it by search and can order it in a single minute. In this way, you can get benefits from using Ecommerce websites. 2. Cost Reduction Process It is a book of business where you have to pay less. For example, if you are selling products in your store, spend money on decoration, electricity, lights, and all. But in the online store, you don’t have to pay for other things. You can follow the serial entrepreneurs. The process is simple and also easy to understand. You don’t have to think of negotiation. If you give a price, interested customers will buy it with that price. But sometimes in the shops, people want you to reduce the cost of the product. However, serial entrepreneurs use Ecommerce websites. Read More: Top 7 Part-Time Work From Home Jobs In 2021 3. Multi Selling Products Using the ecommerce website, you will have time to sell multi-products. For example, you can sell grocery items and also clothing items. The all-in-one facility is excellent and also appreciable. You can open a website and boost your business. Go through the book of business. You may need a designer, but you also do not have to pay extra for creating if you know how to design like it. You will get the best profit through the company. Therefore, make a new website and operate it. How To Build An Ecommerce Site Creating an Ecommerce website is a time-consuming process that may take almost a year to decorate appropriately. However, if you are going to make an ecommerce website for the first time, you may feel bored. Thus, you need to have patience for opening a website and also can see the book of business. Don’t lose patience. Wait for the day of getting a high profit. So, we will now see how to make an Ecommerce website. Design the website in the best way that you can. It is the best time to create an ecommerce website. Serial entrepreneurs always follow these steps. 1. Legal Domain Name When you make a perfect plan for creating an Ecommerce website, choose the niche that you will select. Then, when you locate the place, you will work. After that, you also need to have a name that will perfectly match your business content. Famous serial entrepreneurs always place a proper name as the domain name. With this name, everyone will search and will purchase. You may have to buy the domain name the first time. The official website name is always a registered process. However, pay for that. 2. Legal EIN Number For E-commerce Business When you pay for the domain name, ask to get the EIN. It is the process of Ecommerce website business. If you get a number, that means your business is legal. EIN is the employer identification number. Based on that identity number, pay tax to the online service authority. Visit the book of business and get the details there. The process is the same as the shops. Many websites do not have an EIN. That means the business that the owner is running is illegal. Anytime the owner can get rid of accessing the account. However, you must think of doing a permanent business. Therefore, you must apply for an EIN. 3. Business Permission And License To run a legal e-commerce business, get the license to tell you to have a legal E-commerce business. Then, you need to get permission from the authorities. So, apply for obtaining a permit and go to the next steps. However, wait for the response of the authority and then proceed. Then, in the book of business, it is appropriately mentioned. 4. Designing Designing is the last significant part of creating an Ecommerce website for running a business. When you get an echo from the authority, that means they want you to do the business. However, you go gentle and choose a platform through this, and you will operate the site. For designing, you may need to have a designer. Therefore, select a person who will design your website as you will want. Successful serial entrepreneurs always follow the steps and then open websites and earn money online. Read More: How To Endorse A Check- Step By Step Guide For The Beginners In 2021 The Last Lines These are the steps that serial entrepreneurs have to follow to boost their business through E-commerce. However, all the doubts that you could have been cleared. If you still have doubts, then watch a video and learn in more detail. But before going through the steps, research the market. In that, you will learn what the best niche is in demand. You can go with it, therefore. However, don’t waste your time and seriously have a look at the book of business. It is the best time for you, so go gentle towards your goal. Read More: What Is Network Marketing And How To Do It In 2021 How To Open A Small Restaurant With Less Budget?
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Best Business Credit Cards For Startups In 2023
Best business credit cards for startups can make your life easier for getting short-term loans instantly. Credit cards can help you to build a good business credit score. Your repayments on time can make your CIBIL score better in the long term. If you are a sole proprietor, then also you are eligible for a credit card. A social security number does not have a significant revenue history. If you are looking for the lowest interest rates, then Credit card history matters a lot. Cashback rewards and other perks offer a good credit card score. Your startup needs to succeed at times to make things happen in your favor. Best Business Credit Cards For Startups Available In 2023 Great business credit cards will offer you high limits for credits. Cash back rewards, balance offers, and travel facilities. Your credit card must suit your goals with complete ease. Try out the best options that can make things happen in your way. 1. Chase Ink Business Cash Credit Card For business owners who are looking for better finances, Chase Ink is one of the best options to avail. It is one of the quality business credit cards for startups. The welcome offer for them is $750. The recommended credit score ranges between 670 -800 to get the maximum benefits of this credit card. Features Of This Credit Card Are As Follows:- The best bonus-earning categories involve phone service, internet, cable, and office supplies. With Chase Ultimate rewards, it is highly compatible. You will receive 1% cash back on all other purchases. 2% cashback, you can redeem on the first $25 spent on restaurants and gas stations. Your contribution margin needs to be in good shape. It will offer you the best options to explore things with ease. 2. American Express Platinum Business Credit Card The American Express platinum business credit card is another best credit cards for startups. You will get the welcome offer of 120K points and an annual fee of $695. The recommended credit score ranges from good to excellent. You must be well aware of it. If your business requires frequent travel to distant places. Some of the core features of this credit card are as follows:- $100 statement for credit entry and global entry for $85 in case of TSA precheck. Extensive travel and shopping protection. You will get upto 5X membership reward points. Minimal non-travel bonuses. Compared to other cards high annual fee. 3. Chase Ink Business Unlimited Credit Card The Chase Ink Business Unlimited credit card is one of the best small business credit cards. You will receive a welcome offer of $750. The recommended credit score must range from good to excellent. You do not have to pay any annual fee and 1.5% cashback rewards you will receive from these credit cards. Some of the key features of the credit cards are as follows:- You will receive unlimited cashback earnings. On a new purchase, you will receive unlimited introductory 0% APR for 12 months. For getting a high sign-up bonus, you will receive a low spending rate. Only foreign transaction fees can apply. Limited protection on travel costs as well as purchases. No presence of bonus categories. Similar kinds of information are present in HubSpot too. You can go through it once for better understanding. 4. American Express Business Gold Card American Express business gold cards will offer you 70K points. You will get an annual fee of $295K points. The recommended credit score ranges from good to excellent. Each billing cycle ranges between $150K. You can earn one point per dollar for expenses. Some of the core features of this credit card are as follows:- You will receive flexible reward and redemption options. With the inclusion of the integration of books, it will deliver you expense management tools. There are no foreign transaction fees are essential. No credit statements. Offers high annual fee. It is not applicable for the lower spending business. Sometimes for ERTC qualifications, credit cards play a vital role in getting the loans on time. 5. Chase Ink Business Preferred Credit Card The Chase Ink business preferred credit card is also the best business credit cards for startups. It offers a welcome bonus of 100k points. The annual fee of $95 fees you will receive from these credit cards. The recommended credit score ranges from good to excellent. You will have the privilege to earn three points for every dollar spent. Some of the core features of the Chase Ink business credit card are as follows:- You will receive multiple bonus categories. Phone and travel protection is possible. There are no requirements for foreign transaction fees. It comprises annual fees. If you want to get a high sign-up bonus, then you have to pay High spend requirements for the sign-up bonus. 6. Blue Business Plus Credit Card From American Business The blue business plus credit card from American business credit cards will help your small business to grow at a rapid pace. You will receive the welcome offer of 15K points. Your requirement to pay the annual fee is $0. The recommended credit score ranges from good to excellent. Some of the core features of the Blue Business Plus credit card from American Business are as follows:- You will have multiple transfer partners. On all purchases, you will get flat-rate earnings. Delivers your generous welcome offer. You can apply for foreign transaction fees. $50K bonus earning cap. 7. US Bank Business Triple Cash Reward The welcome bonus offer you will receive is $500. The annual fee of $0 you have to pay for getting this business credit card for start-ups. The recommended credit score ranges from good to excellent. You will receive business rewards. For a long introductory APR period, you will have to go through it once. You will receive 3% cashback for all the categories. Some of the core features of this best business credit card are as follows:- $100 statement credit for recurring software subscriptions. Upto 5% cash back that is booked on the US bank travel portal. No travel rewards you will receive from this credit card. Low rate outside all the bonus categories. Best Small Business Credit Cards There are several small business credit cards that you can opt for in 2023. Some of the best small business credit cards are as follows:- Chase Ink Business Preferred Credit Card. American Express Platinum Card. Capital One Spark Cash for Business. American Express Blue Business Cash Card. Discover it, Business Card. Wells Fargo Business Platinum Credit Card. U.S. Bank Business Platinum Card. Your business's net operating income also matters a lot here. Try to consider this fact as well from your end. Final Take Away Hence, these are the best business credit cards for startups in 2023. You need to take care of the reality while you want to get short-term loans for your business. It is impossible to make your choices all of a sudden. You can share your views and comments in our comment box. It will assist us to know your take on this matter. Try to develop a better solution that can make things work perfectly well in your favor. Read More Busuiness Related News By Clicking Below!! ERTC Qualification Step-By-Step Guide Top 7 Best Business Ideas For Teens In 2023 What Is Safe Harbor 401K? Benefits And Types
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The Best Risk Mitigation Techniques For Your Business
Risks in business are inevitable, and with new projects and processes, the level of risks in business increases. This is because there are inherent risks that are associated with the processes of a project. However, there are some strategies that you can follow for risk mitigation. These will help you deal with risks in business that arise with the coming of new projects. In this article, you will learn some general details about risk mitigation. You will also learn how to plan for risk mitigation in business. Then, we will share with you some of the major risk mitigation strategies to follow. Hence, to learn more about risk mitigation in business read on through to the end of the article. What Does Risk Mitigation Mean In Business? According to Indeed.com, “Risk mitigation refers to the process of planning and developing methods and options to reduce threats—or risks—to project objectives. A project team might implement risk mitigation strategies to identify, monitor and evaluate risks and consequences inherent to completing a specific project, such as new product creation.” Major risk mitigation strategies include the actions that managers put in place to deal with major issues and also the effect of these issues in regard to the project. These strategies are brought in by risk management. Risk management is one of the most essential tools required to run a business, especially when the business faces a downturn. When an internal risk or an external risk, an unexpected surprise can easily destroy the business processes. Hence, this is whether risk management strategies help. With these strategies, you will be able to know what steps to take if you want to mitigate the risks in business. How To Plan For Risk Mitigation? With the help of a risk mitigation program, you will have your procedures in hand. However, before you mitigate the risks, you will be able to identify those risks. You will have to learn what type of risks you are dealing with, for example, organizational risks. Furthermore, you will have to stress the importance of identifying the different vulnerabilities that can affect your business. According to TechTarget.com, “A priority list should be created to rank each risk according to the likelihood of occurrence and severity of the impact on the enterprise. A high-probability event, for example, that has little or no impact on the enterprise, such as an employee calling in sick for one day, will be treated differently than a low-probability, high-impact event like an earthquake.” Identification is necessary if you want to address a particular risk and its threats and vulnerabilities. Next up, you will need to validate and analyze it to find the likelihood of the risk’s occurrence in business. You can also involve the employees and customers and learn from them their own feedback on the problems they are facing. This way, you can find the hidden risks that are threatening your business. In the business realm, these vulnerabilities can often appear in financial areas, notably during taxing periods. For these complexities, hiring a professionals can be invaluable. If you're considering hiring a sales tax accountant, you're opting for a preventive risk mitigation strategy. This expert can help manage your tax affairs effectively, ensuring complete compliance while identifying possible cost-saving areas. Hence, hiring a CPA for sales tax can indeed act as a significant risk buffer for your business. Read More: The Types Of Business Insurance Needed For Every Business What Are The Best Risk Mitigation Ways In Business? According to Investopedia, “Risk management has always been an important tool in running any business, particularly when a market experiences a downturn. In any economic environment, an unexpected surprise can destroy your business in one fell swoop if you didn’t have the right risk management strategies in place to prevent, or at least mitigate, the damage from that risk.” Hence, it is important for the business to have a risk management process in place. However, to enable risk management to work, risk mitigation is important. Here are the steps that you can take to ensure risk mitigation: 1. Throw A Challenge Towards The Risk If you see a future risk, start challenging it by allowing it to progress. However, make sure that the dangers are negligible and are easily manageable. This way, you will be able to learn the risk and prevent it accordingly. 2. Start Prioritizing The hazards that the risk can bring pose negative effects for your business and your team. Once you prioritize the risks, you can minimize the potential impact. You are just dealing with the risk as per its order of importance. 3. Exercise The Risk Since you have already identified the major hazards associated with the risk, it is time to exercise those risks. To do that, start running experiments, drills, and other exercises to model threats. 4. Risk Isolation You cannot stop other activities in the business which are necessary for its operation. By isolating the risk from other aspects of operations, you can minimize the risk’s negative impact. 5. Risk Buffering Once you add extra resources to the situation, you can minimize the potentiality of the risk. The resources can be time, money, or even personnel. This is called buffering of the risk, as it reduces the negative impact of the risk. 6. Risk Quantification Risks come with both cost and reward. You will need to quantify, compare, and analyze both sides in regard to the risks. This will help you to determine whether the positives are enough to justify the risk’s impact. 7. Monitoring The Risk Since risks are not static, you must use a two-way communication solution to monitor the risk conditions that affect your business. 8. Contingency Planning No matter how much you plan and stick to the plan, it can still lead to failure. Hence, always keep a backup plan in place, even when you think you have handled the risks. 9. Learning From Best Practices Since there are many businesses and industries present, the occurrence of a novel risk for your business is less probable. Someone might have already faced the risks that you are facing now. Hence, you should look for best practices in the industry to mitigate risks. Read More: How To Start An Insurance Company? – Steps You Must Take Wrapping Up Hope this article was helpful for you in getting a better idea of the best risk mitigation strategies for businesses. To ensure proper risk mitigation, the business needs to implement a top-end risk management policy in place. This will act as insurance in itself and can become an important step to ensure the success of the business. Consider following the aforementioned risk mitigation strategies in your business once you have identified the inherent risks for your business. Do you have any more recommendations in mind regarding the best ways for risk mitigation in business? Share your views with us in the comments section below. Read Also: How Do Entrepreneurs Make Money? – The Secrets You Should Know Project Management: What Is It? – Major Types, Examples, And More 10 Must-Have Entrepreneurial Characteristics
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Importance Of Capital Goods – What Role Does It Play In The Industry?
Do you want to know whether the Capital Goods are the future or a threat to future investment? If yes, you have to understand the reality of Capital goods before drawing any conclusion over it. You must know some of the fundamental aspects of Capital goods before understanding their functions and importance in the Industry. Without knowing the basics, you cannot draw any conclusions about it. Without an adequate supply of Capital goods, Industry cannot grow on the right track. Therefore, you must possess the correct amount of capital goods to increase the chances of your business growth. What Are Capital Goods? The physical assets of a company that is used in the process of production by a company are known as Capital goods. The consumers will use all these products and services produced by the company using these goods. Different forms of capital goods are equipment, machinery, tools, and buildings. Most importantly, they are not finished products; instead, they are used to prepare them. Importance Of Capital Goods Capital plays a vital role in the modern productive system. Without the use of Capital, you cannot be able to run your business successfully. Therefore, every essential aspect of your business is dependent on the application of capital goods. Also Check: Canned Packaged Goods: Everything You Need To Know 1. It Is Essential For Production Without capital, the production of goods and services is hard to imagine. However, nature cannot provide you with all the furnished goods and services to human beings. Machinery for farming, mining, forestry, and ashing can make things easier and more effective for your production process. However, if a man has to work with his bare hand for agriculture, then productivity will be low. Even in the primitive age, the application of the tools was there for plowing the agricultural field. In the modern age, the application of sophisticated machines has made people's lives more accessible and has increased the rate of efficiency. 2. Enhances The Productivity With the enhancement of technology and specialization, the application of capital goods has become much more important than before. Therefore, within a limited time, more goods can be produced. It's like machinery has made the life of the people easier today. In addition, extensive use of capital has made the USA one of the strongest economies in the world due to the high productivity rate. Many developed countries of the world today are primarily dependent on Capital Goods. So you have to make your choices in the correct direction while improving your business. 3. Importance For Economic Development In the process of economic development, capital occupies a central role. This is because the core of economic growth is capital accumulation. A country’s economic development is solely responsible for the usage of capital goods. Roads, railways, airports, harbors, and other essential facilities we use today are part of the capital. Economies of the USA, Russia, And China are developed because they have a high amount of capital to build their economy. Without the application of Capital goods, no economy can flourish in the long run. 4. Creates Employment Opportunity One of the vital roles of Capital goods is creating employment opportunities in any country. Therefore, creating employment opportunities in a country increases when you use Capital goods. Therefore, employment generation is the actual cause for which its use is crucial. It creates the employment opportunity in two ways or, better to say, in two stages- Firstly it creates employment opportunities when workers are hired to produce the machinery, which will help construct dams, roads, and railways. Secondly, workers will be required to handle the machinery for producing the finished products using the capital goods. Many factories will crop up in completing the dam projects, and many people will get employment opportunities. Thus, the capital formation can increase the chances of employment generation in a nation. First, however, you have to understand the ways before using capital goods to develop your nation's economy. 5. Helps To Convert Raw Materials Into Finished Products No factories in the world can flourish only with adequate raw material. The sales of an organization will increase when with the help of machinery, a company's raw materials will be converted into finished goods. Only by selling the finished goods, the asset side of the balance sheet shows a better figure for the organization. Therefore, the profitability of an organization is heavily dependent on the use of Capital goods. You have to understand the co-relation between Capital goods and their usage in modern-day business. Then, proper planning with the help of adequate execution can make things simpler for your organization. Also Read: Boxed Packaged Goods: The right Guide To uplift Your Business Functions Of Capital Goods There are several functions of Capital goods that many of us are not aware of in the correct order. Some of them are as follows:- It ensures an adequate supply of raw materials for your business. The supply of appliances and heavy machinery can help you increase your production level. Capital goods provide the means of subsistence to the workers. You can enjoy the provision for transportation like Railways, motor trucks to make the supply of your products and services smoother. Employment creation and employment generation for the workers increase when you use capital goods. Thus, capital goods form a vital part of the economy that you cannot ignore at your end. You have to admit the importance of Capital goods in your life. Developed countries of the world have focussed on Capital formation first to develop their economy. Final Take Away Without applying capital goods, no economy can prosper in the long run. Therefore, developed economies of the world make extensive use of the capital to improve their economy to the next level. You can share your comments and opinions if you feel that my opinion is correct. For example, today, the demand for Capital goods has increased due to increased orders. If your company has a higher capital margin, then the chances of the growth of your organization increase. You have to understand the facts before deciding to invest in Capital goods. More Resources: Should You Buy GMER Stock? Everything You Should Know Should You Buy GS2C Stock? Everything You Should Know Is PHI Stock A Good Buy? Everything You Should Know
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