Does your business have a backup plan? Business backup plan is created to prevent chaos from occurring when your business is having a financial crisis. When your resources are low, your business needs to make drastic changes in order to survive. That’s where the BBP comes in. It is a security and backup measure when your business is having a financial crisis.
There are 4 critical factors for your business backup plan (BBP)
Headquarter- During a financial crisis, your headquarters will have to be moved to reduce cost. Your new HQ may be at your home or at a cheaper place that you can financially covered.
Equipment- Some equipment has to be sold and others have to be changed. You might need to buy new different equipments because of your new HQ location.
Workforce- Labor force is very costly and has to be reduced during a financial crisis. There has to be a reduction in the workforce where only the best of the best can be maintained in order to survive.
Technology- You might need newer technology and even newer ways of doing business in order to cut cost. Use good low cost technology to bring up the highest ROI for your business. Understand what you need and don’t need to bring down cost.
Craft a business backup plan so you know the proper procedure during a financial crisis. By making a backup plan, you won’t panic when the crisis occur. Use the plan to direct the proper course of action in just a few minutes. Plan before it even happened.
6 Comments
good article. Everyone should definitely have a business backup plan, not to say you’re planning for your business to fail, but more of an “emergency kit” you keep in your house with bandaids and other medical stuff in case someone gets hurt. Better safe then sorry.
For the solo worker, these BBP’s are a bit less needed compared to what you were talking about as most of us work in a home office so no headquarters changes are needed, but I agree with needing updated technology and things of that nature to grow and raise profits.
OPEN SOURCE OPEN SOURCE OPEN SOURCE
Instead of paying for MicrosoftWord, download OpenOffice. There’s tons of alternatives and applications/software that are open source that can help cut down costs in business. Utilize them 
Mike- Thank you! Solo worker won’t need BBP since they operate alone. Open source is always good for cutting down costs.
it may not be as easy as it sounds…
to move the office to cheaper location is fine, but what you do if you have a year or two still running on your lease contract and your landlord will not back away ? moving to cheaper place may not be possible or may be very very expensive …
people - in a big company there often are more people than the company needs … just look around how many people have to blog and read blogs during their “office” time
because they can. clearly they have too much time. That means there are too many people in that company and some can be let go 
In those companies to downsize is possible, but depending on the labour laws it also may not be cheap …
in small companies that often employ even less people than they should, there simply may not be anyone who can be let go …
I would add one more item to your list - Customers - sometimes some clients are too costly to service. If we can afford it, we do not mind, we hope one day the nice treatment will pay back. In times of crisis when we count every cent and make sure our manpower is well utilized, sometime ditching a client or two may actually help, no matter how illogical it sounds
Biz- Good insight! Some clients can be too troublesome to have.
When it comes to laying-off workforce for the backup plan, we need raw guts to execute it. It’s a classic decision.
There’s a local bank here which didn’t lay off a single worker (they even promised to) during the 98 financial crisis, and emerged as the best decorated bank with outstanding service and increasing profit.
Reducing cost may not be the only answer to financial crisis.
Wow, that bank is gutsy! Glad it worked out for them in the end Zedd.