Business continuity plan: What it is and how to build one [+ free template]

In an unpredictable world, disruptions can strike businesses without warning. From natural disasters and cyberattacks to global pandemics, these events can bring operations to a halt. As a result, businesses can face financial losses, damaged reputations, and, in some cases, a permanent shutdown. For companies that want to safeguard their future, a business continuity plan (BCP) is essential.

A BCP is a comprehensive strategy designed to help organizations stay resilient when disruptions arise. It helps minimize downtime, keep essential functions running, and protect critical resources, whether physical, digital, or human.

In this guide, we’ll explain the key elements of a BCP, offer clear steps to building a robust plan tailored to your organization’s needs, and provide a free template to help you get started.

A BCP is a strategic framework that identifies risks, outlines responses, and confirms the key resources and personnel that should be ready to act when needed.

This structured approach prepares businesses to maintain essential functions during and after a disruption. The purpose of a BCP is to minimize the impact of unexpected events — including natural disasters, cyberattacks, or other crises — by proactively addressing how to maintain operations, protect assets, and support quick recovery. 

Having a forward-thinking plan is essential for mitigating risks and giving businesses the resilience they need to continue serving customers, supporting employees, and preserving their reputation through challenging times.

A business continuity plan has clear advantages that help companies stay resilient in the face of unexpected events: 

• Minimizes downtime: A solid BCP helps keep essential functions running during disruptions, cutting down the time it takes to fully restore operations. This way, businesses can maintain continuity and avoid halting their progress.
• Reduces financial loss: By preparing for risks in advance, a BCP can minimize the financial hit from unexpected events and focus the business on keeping operations going.
• Enhances crisis response: A BCP provides teams with clear steps and roles during a crisis, making it easier to respond quickly and stay organized. This preparation leads to a faster, more effective response when disruptions occur.

Business continuity involves planning across different areas so a company can withstand and recover from disruptions. Each type addresses specific aspects of operations, from technology to workforce readiness, forming a comprehensive plan for resilience.

• Operational continuity: This type of plan focuses on keeping essential business functions running smoothly during a crisis. It includes setting up processes like backup workflows, alternative staffing plans, and contingency protocols to ensure core operations can continue even when challenges arise.
• Technological continuity: This plan validates that IT systems and data remain accessible and secure during disruptions. This involves backup systems, cybersecurity measures, and strategies for quickly restoring critical technology.
• Workforce continuity: This type of plan prepares teams to adapt and maintain productivity during a disruption. It includes strategies for remote work, flexible roles, and effective business communication to keep employees engaged and operational.
• Supply chain continuity: This focuses on minimizing disruptions to the flow of goods and materials. It involves building strong relationships with suppliers and planning for alternative sourcing if primary channels are affected.
• Financial continuity: This plan helps secure the financial resources needed to operate during a crisis. It includes strategies for managing cash flow, accessing emergency funds, and maintaining credit stability to weather disruptions.

Creating an effective BCP requires a step-by-step approach that addresses your organization’s unique needs and risks. Each step helps you establish strategies, resources, and protocols to keep your business running during unexpected events.

1. Define your continuity objectives

Start by outlining the primary goals of your BCP. These objectives should clarify what’s essential to keep operations going, such as protecting critical data, maintaining customer service, or stabilizing supply chains. 

Your objectives will guide the entire plan, helping you prioritize actions and resources for the most critical aspects of your business. A clear set of objectives also allows for measurable benchmarks, allowing you to assess the effectiveness of your plan over time.

2. Identify critical business functions

Pinpointing your business’s core functions is key to building a solid continuity plan. Think about the processes that keep your business moving — like order fulfillment, customer experience, IT operations, and financial transactions.

For each function, identify what it takes to keep it running — for example, key team members, specific equipment, or essential software. By focusing on these critical areas, you’ll be able to prioritize resources during a disruption so your most important operations stay up and running.

3. Conduct risk assessments

Take a close look at the risks that could throw your business off track. This means considering potential threats like natural disasters, cyberattacks, power outages, and supply chain disruptions. 

For each risk, think about how likely it is to happen and how it would impact your day-to-day operations. A solid risk assessment helps you pinpoint your biggest vulnerabilities so you can focus your continuity plan on the areas that need it most.

4. Perform a business impact analysis (BIA)

A business impact analysis (BIA) considers how different disruptions could impact your business. It’s about identifying your most essential functions and determining what would happen if they were interrupted — like lost sales, delayed orders, or frustrated customers. By doing a BIA, you get a clear picture of what’s on the line, helping you prioritize your continuity plan to keep the most important parts of your business running smoothly.

5. Develop recovery strategies and plans

Now it’s time to map out how you’ll keep things running during a disruption. For each critical function, outline recovery strategies that include backup resources, alternate workflows, or temporary solutions to keep essential operations moving. Think through different scenarios: How will you restore data if there’s a cyberattack? What’s the plan if your main supplier can’t deliver? Having these strategies in place means you’re ready to respond quickly and effectively, keeping downtime to a minimum.

For example, if a cyberattack disrupts access to key systems, your recovery strategy might include using secure backup data centers and deploying temporary access protocols.

Here’s a sample business continuity plan for a mid-sized technology company that relies heavily on digital infrastructure and cloud-based services.

Business continuity plan filled-in example

Implementing a BCP is a team effort that requires collaboration and thoughtful planning. Here are some tips to help you roll out your plan effectively and keep everyone on the same page.

• Gain leadership support: Secure commitment from your leadership team by explaining the importance of the plan. Encourage them to champion the initiative to motivate the entire organization.
• Gather input from cross-functional teams: Involve representatives from key departments such as IT, HR, operations, and customer service. This can look like hosting brainstorming sessions or workshops where teams can share insights on potential risks and identify critical functions essential for maintaining operations. 
• Create clear communication protocols: Clearly define who is responsible for communicating during a disruption. For instance, your IT team might handle technical updates while HR communicates employee-related information. Use reliable channels like email, SMS alerts, or a dedicated app to disseminate updates quickly. 
• Revisit the plan regularly: Schedule a formal review of the business continuity plan every six months. Assess changes in the business environment, such as new technologies or shifts in operations. After any drills or real incidents, gather feedback from participants to identify gaps or areas for improvement. Remember to document these findings and incorporate them into the updated plan.
• Train employees: Conduct regular training sessions, such as quarterly workshops or monthly refresher courses, to make sure employees understand their roles in the plan. Use diverse methods like in-person training, online modules, or simulation exercises to keep the training engaging and effective.

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Why does a business continuity plan matter?

A business continuity plan is essential because it helps protect core operations, reduce downtime, and shield your business from potential losses, reputational hits, and even customer churn when disruptions strike.

How often should a BCP be updated?

Ideally, you should update your BCP at least once a year — or anytime there are big changes in your business, technology, or external risk.

What is the difference between a business continuity plan and disaster recovery?

Think of a BCP as your full game plan for keeping things running during disruptions while disaster recovery zeroes in on restoring IT systems and data after an incident.