1. Risk assessment
Determine and prioritise potential risks that could disrupt your business. These might include natural disasters, cyber threats, or supply chain issues.
2. Define core functions
Identify what’s absolutely critical to keep your business operating, such as IT systems, payment methods, suppliers and key staff members. If you have a physical property, plan how you would move equipment and stock to another location, or how you could operate remotely.
3. Consider your cash flow
A cash flow forecast can help you estimate the financial impact of a crisis.
Think about:
- Negotiating flexible payment terms with your suppliers in an emergency
- Creating a cash reserve with around three months’ worth of operating funds
- Checking the inclusions and exclusions of your insurance policy
- Exploring your eligibility for grants and financial assistance, such as our financial hardship support
4. Write an emergency response plan
Create an emergency response plan, which details roles and responsibilities for your team during a crisis, as well as evacuation procedures and emergency contacts.
5. Backup your data
Backing up your essential data and systems regularly is your safety net in an emergency situation. Make sure backups are secure and easily accessible, so you can continue to work wherever you are.
6. Develop recovery strategies
Outline how your business would recover from a range of different scenarios. For example, in a bushfire, this could involve relocating to a temporary workspace, switching to backup suppliers, setting up essential IT systems and contacting your insurance provider.
7. Communication plan
It’s important to keep everyone informed during a crisis. Think about how you would communicate with your employees, customers and suppliers. Identify alternative communication channels in case your primary ones are disrupted.
8. Test, review and update
Test your plan with your team to help identify anything that’s missing or could be improved. Review and update it regularly to reflect any changes to your business, technology or potential risks.
Make sure all team members are familiar with the plan and can access it – so anyone in your business can use it in an emergency.