business recovery plan and procedure for troubled companies
The business world often uses the terms "business
recovery plan" and "disaster recovery plan" interchangeably.
In either case, this plan should ensure your business'
survival when disaster strikes. This may be in the form
of a natural disaster, such as a hurricane, fire or flood.
On the other hand, it may be financial disaster. Poor
business decisions, a down-turn in the economy, embezzlement
by an employee or dishonest corporate partners can also
wreak havoc on your business. A business recovery plan
can help you get through difficult times.
What to Include in Your Business Recovery Plan
This plan should identify the most important areas of
your business. What are the most basic departments you
need to keep your company running? What key documents
and other items do those departments need to operate
This list should specify the necessary equipment. It
may include software and hardware for the technology
department as well as business equipment and spare parts.
And you must create a basic operating budget detailing
all expenses. Find out the minimum financing you need
to keep your business running.
Once you have the list and budget, put together an action
plan. Describe each task, items required, department,
the responsible parties and their contact information.
As a small business owner, you may be responsible for
overseeing most of these departments. If you have a partner,
however, or hired personnel, your business recovery plan
should specify who is responsible for taking care of
each area should disaster strike. This way, there is
no confusion during a crisis and your business can take
quick and decisive action.
Review your plan regularly, either every year or every
six months. It's a good idea to look at it whenever you
do your strategic planning. To be effective, your business
recovery plan should accurately reflect the current standing
of your company.
What to Do If Disaster Strikes
If your business is going broke and you have never created
a business recovery plan, you might still have time to
do so. Before you decide to file bankruptcy, talk to
a financial adviser or a business expert. They can help
you find ways to cut costs and to take advantage of business
laws. Likely, a bankruptcy lawyer won’t give all
your options unless you specifically ask about them.
And, even then, you might not get straight answers. Do
your research, create a business recovery plan and get
your company to a profitable standing once again.
your business is currently in trouble, here are 3
concerns unique to your situation