Business continuity planning for small businesses

Executive overview

40–60% of small businesses never reopen after a disaster. A business continuity plan (BCP) is the difference between recovering quickly and not recovering at all.

BCPs span two severity levels: disaster plans for total operational shutdowns, and crisis management plans for partial disruptions. Every business needs both.

Small businesses are disproportionately vulnerable — a BCP is not optional.

Types of disruptions BCPs address

• Geological: severe weather (hurricanes, unexpected snowfall)
• Biological: communicable disease causing staffing shortages; contaminated supply chains
• Human-caused accidental: toxic spills requiring evacuation
• Human-caused intentional: ransomware, arson, vandalism
• Technological: Wi-Fi outage, platform crash, CrowdStrike-style patch failure

Disaster vs. crisis plans

• Disaster BCP: for events that completely halt operations — think Hurricane Katrina destroying storefronts
• Crisis management plan: for partial disruptions — a key leader incapacitated, a late food delivery during dinner service, a Wi-Fi outage at a software firm
• Severity thresholds are organisation-specific; define them for your context
• Best practice: plan for every scenario, including unlikely ones — never assume "that can't happen here"

Key elements HR must own

• Employee communication: define how you reach staff during a disruption before it happens
• Backup staffing: identify who steps in for unavailable key employees; cross-training is essential
• Data security: protect employee and sensitive data via remote work options and cloud storage
• Compliance: legal obligations (e.g. FLSA) don't pause during a crisis
• Testing and training: a plan only works if people know their role — run drills regularly

Building the plan efficiently

• Create boilerplate language covering common elements first
• Layer in scenario-specific sections for unique disaster or crisis types
• HR's role is as strategic as you make it — don't let admin tasks crowd this out