How to create a business continuity plan

• Only one in four small businesses in Australia has a business continuity plan.
• A well-structured business continuity plan can help you identify risks and keep your business running in the event of disruptions.
• The right insurance cover can help your business recover and move forward when things don’t go to plan.

Businesses face a range of risks that can disrupt their operations, from natural disasters like bushfires and floods to challenges such as supply chain delays, burst water pipes or cyber-attacks. These disruptions can happen unexpectedly, leaving businesses unprepared and vulnerable.

Despite these risks, research shows that only one in four businesses has a plan for when things go off course.¹

As a business owner, it’s important to be prepared for any situation. A business continuity plan should be a staple in every business toolkit. If you don’t have a plan—or haven’t reviewed it in some time—this guide will help you get started.

What is a business continuity plan?

A business continuity plan is a documented plan of the actions you’ll take before, during and after something out of your control happens to your business, to minimise or manage the impact.

Why do you need a business continuity plan?

When the unexpected happens, it’s can be difficult to find time to think clearly and logically about the right way forward. Identifying your risks and creating a detailed plan ahead of time is the best way to ensure you’re prepared, particularly in the event of an emergency. Your second-in-command should also be familiar with the plan, allowing them to step in if you're unavailable during a crisis.

What type of events should a business continuity plan cover?

A business continuity plan should cover every risk facing your business. It’s good to spend time thinking about your risks, as some are more obvious than others. Risks will likely include natural disasters, fire, supply chain problems, staff shortages, damage to assets, cyber-attacks and IT issues. There may also be additional risks specific to your business or industry for you to consider.

What should a business continuity plan include?

Your plan should outline key risks and provide clear steps on how to:

• Prepare: Identify risks and put safeguards in place.
• Respond: Implement strategies when a disruption occurs.
• Recover: Restore operations as quickly as possible.

Key areas to consider as part of your plan may include:

Risk analysis and contingencies

To effectively manage your risks, you should assess potential threats, their impact, and how likely they are to occur. Once identified, you can create strategies to reduce these risks and contingency plans to respond. You can organise this information in a table, like in the example below:

Strategies to maintain business operations

Once you’ve identified the potential risks, the next step is to develop a plan for how you will continue operations in the event of disruption. This may include:

Ensuring alternate leadership coverage

If the business owner is unavailable during a disruption, who steps up? Ensure your second-in-command is briefed on your continuity plan, has decision-making authority and access to key contacts and documents.

Finding an alternate workplace location

If your primary business location becomes unusable, having a backup workspace is essential. Identify off-site locations such as co-working spaces or remote work options. Ensure backup communication channels, such as video conferencing tools, are set up in advance to maintain team connection.

Identifying alternate suppliers

Disruption to a key supplier can have big impacts on your business operations. Research backup suppliers who can step in if needed, to ensure stock and materials continue to flow even during unexpected delays.

Sourcing back-up power supply

If your power goes off for any length of time, it could leave you unable to operate and potentially also lead to spoiled stock. Arranging access to a generator or alternative energy source can help minimise downtime and prevent losses.

Establishing a strong digital presence

A well-established online presence can help your business remain operational even if something goes wrong at your physical premises. Selling online may be an option to allow you to continue trading, while social media and digital channels provide a direct way to communicate with customers and share important updates.

Preparing for staffing gaps

Many businesses depend on a reliable workforce, but disruptions such as illness, travel restrictions, or seasonal fluctuations in activity can make it difficult to maintain staffing levels. Prepare ahead by up-skilling employees in multiple roles and creating a plan for how you’ll source additional temporary staff if needed.

Retaining customer loyalty

If you’re unable to operate, your customers may go elsewhere, but proactive communication can help maintain their trust. Have a plan in place to keep customers informed about operational changes, expected recovery timelines, and alternative ways to access your products or services.

Incorporating business continuity into daily operations

Beyond identifying the actions that need to be taken in an emergency, maintaining business continuity requires ongoing day-to-day effort. Some key tasks to consider adding to your to-do-list include:

• Regular property maintenance to minimise property damage risks
• Routine data back-ups to protect critical business information
• Stock storage policies to reduce waste
• Cyber security education and procedures to minimise digital threats.

Related article: Managing cyber security risks for Australian businesses

Consider the impact of downtime

The longer your business is out of action, the greater the impact may be on your customers, revenue, and reputation. Some disruptions may cause immediate effects while others can escalate over time.

Mapping out how disruptions could impact your business over a range of timeframes—from day one to week one to month one—can help you to identify what matters most and prioritise recovery efforts.

Storing and accessing essential business documents

Having easy access to essential business documents will ensure you can respond quickly in a crisis. Documents to include for safe keeping include:

• Business registration details
• Property deeds or leases
• Licences, certificates or awards
• Insurance documents
• Your business continuity plan
• Staff details, including contacts and next of kin.

Storing these records both physically and digitally will ensure they’re always within reach when needed.

Related article: A comprehensive guide to making a business insurance claim

Ensure you have the right insurance in place

Insurance is a key part of a business’s risk management strategy and can help get your business get back on track should the unexpected happen.

Our Business Packages offer flexible and tailored coverage for small businesses, for a range of common risks including business interruption and public liability.

Make sure your business is prepared. Find out more about our business insurance packages for small businesses today.

Learn more about QBE’s Business Insurance Packages

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¹ Australian Government, Small Business Natural Disaster Preparedness and Resilience Inquiry report