Managing Your Cash Flow

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Keep the cash flowing with business continuity planning

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As a small business owner, you are susceptible to a range of risks – many of which could be financially disastrous. Could you cope if your business was forced to close, even just for a few days? For most small business owners, the answer is no.

Identifying risks

There are countless risks facing your business every day, and many of them are very difficult to plan for. Imagine, for example, a burst pipe on your premises. Or an extended period of internet outage – not unlike the lengthy downtime suffered by BlackBerry users just a couple of weeks ago. Or, perhaps, a break-in overnight. Any of these incidents could render your business inoperable – and, as a result, could cut off your revenue stream.

It’s important that you have a plan to help you deal with unforeseen emergencies of this sort. This is known as business continuity planning, and it is a vital part of any organisation’s strategy.

Getting covered

But you should also make sure that you have an insurance policy that helps protect your business from these disasters. Business interruption can help to cover you against loss of income sustained as a result of an emergency, and can help you to cope financially in the event that your business is forced to temporarily close.

In many cases business interruption insurance is the difference between a business surviving and collapsing. Again, ask yourself whether or not your business would be able to survive if you were unexpectedly unable to trade. Business interruption insurance, taken as part of a comprehensive, tailored business insurance policy, can help guarantee that your firm survives the unexpected choppy waters.

Josh Hall is editor Simply Business, an online insurance broker offering public liability insurance and professional indemnity insurance for small and medium sized businesses.

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