What is Business Continuity Plan? Steps & Examples

No business is immune to disruptions. A power outage, cyberattack, or supply chain delay can throw everything off track. That’s where a business continuity plan (BCP) comes in.

Think of a data breach that stalls customer access for days. Or a warehouse flood that halts shipping right before peak season. These aren’t rare incidents. According to the U.S. Small Business Administration, 25% of businesses never reopen after a major disruption. That’s a serious risk—especially when most of these events could be planned for in advance.

A business continuity plan (BCP) helps you stay prepared. It outlines how your company will continue operating during and after an unexpected event. From protecting your data to keeping critical services running, it acts like a safety net that keeps things moving when everything else seems stuck.

The best part? You don’t need to be a large corporation to build one. With the right steps, any team can map out a plan that protects its people, systems, and services.

This guide will walk you through what a business continuity plan is, why it matters, what to include, and how to build one.

A business continuity plan is a written document that outlines how a company will keep operating during unexpected events. These events could include natural disasters, cyberattacks, equipment failures, or even a pandemic.

The goal is simple: avoid long downtimes, protect your operations, and get back to work as fast as possible.

A typical BCP includes key information like emergency contacts, backup systems, and step-by-step procedures to maintain essential services. It’s not just about surviving a crisis—it’s about staying productive while handling it.

Think of it as a blueprint. If your main office floods, your continuity plan should tell your team where to go, how to access tools, and what actions to take first. If your data gets wiped, the plan should guide how to recover it.

Unlike disaster recovery plans, which focus mostly on IT systems, a business continuity plan looks at your entire operation—people, processes, communications, supply chains, and more.

It’s not just a document for large companies. Even a five-person startup can benefit from having one. In fact, smaller teams often feel the impact of disruptions more sharply, making continuity planning even more important.

Unexpected problems happen. Power goes out. Systems crash. A key supplier shuts down without warning. The importance of a business continuity plan becomes clear when these things interrupt your work.

Having a plan in place can make the difference between a quick recovery and long-term damage.

Here are some key benefits of a business continuity plan:

These benefits show the importance of a business continuity plan for businesses of all sizes. Whether you’re a startup or an established company, being prepared isn’t just smart—it’s essential.

A business continuity plan is only useful if it’s clear, practical, and easy to follow during a crisis. It needs to guide your team step-by-step, even when everything feels uncertain.

Let’s break down the essential components every business continuity plan should include:

Before you plan your response, you need to understand the risks. Risk assessment involves identifying events that could disrupt your business operations. This could be anything from a cyberattack to a fire in your office.

Look at both internal risks (like server failure or system bugs) and external threats (such as floods, political unrest, or power outages). The goal is to figure out what’s most likely to happen and which risks could hit you the hardest.

Example: An eCommerce store might see website downtime as a bigger threat than a physical office closure. For a manufacturing unit, supply chain issues might top the list.

Once risks are identified, the next step is to assess their impact. A business impact analysis helps you figure out which areas of your business are most essential.

Ask:

This step helps you rank business functions by priority. For example, customer support might need to be up within hours, while admin tasks could wait a few days.

This is where planning meets action. Once you know which operations matter most, decide how you’ll restore them during a disruption.

You need to:

Recovery strategies may include using cloud backups, switching to remote work, moving operations to a secondary site, or outsourcing certain tasks temporarily.

Example: If your main warehouse is unusable, can you fulfill orders from another location?

Emergencies are stressful. People need to know exactly what they’re responsible for.

Your plan should clearly list:

Don’t just list job titles—include names, contact info, and backups in case someone is unavailable.

Clear and fast communication is essential during a crisis. Your plan should outline:

Make sure there’s a process for both internal updates and public communication. Keep things honest, timely, and useful.

Losing data can be just as damaging as losing money. That’s why your plan should detail:

Include information on software licenses, login credentials, and who has access to what.

A plan only works if people know how to use it. That’s why regular testing is critical.

You should:

Example: A company might simulate a network outage to test how quickly the team can switch to backup systems.

Building a business continuity plan takes more than filling in a template. It starts with understanding how your business runs and what could stop it. This section walks you through the key steps create a business continuity Plan

The first step is figuring out which parts of your business are most important. A business impact analysis (BIA) helps you identify what would hurt the most if it stopped working.

You don’t need to look at everything all at once. Focus on:

For example, if you're running an online store, your website, order system, and customer support are all vital. If any of those go down, it affects sales and customer trust.

During a BIA, ask questions like:

Use actual data where possible. If a shipping delay last year cost you $5,000, include that. Real numbers help you prioritize what needs protection.

Now that you know what’s important, you need to figure out what could put it at risk. This step is called a risk assessment.

Start by listing everything that could interrupt your business. Some threats will be general—like power cuts, internet issues, or staff illness. Others may be more specific to your industry. For example:

Also consider location-specific risks. If you’re based in a flood zone or near wildfire-prone areas, note that down.

Try to rank each risk by two things:

This helps you focus on what matters most, instead of trying to prepare for every possible scenario.

Once you know what matters most and what could go wrong, the next step is deciding how to respond. Your recovery strategies should explain exactly what to do after a disruption.

Start with the basics:

For example, if your main server fails, your plan might include switching to a cloud backup within two hours. If a fire damages your facility, you might shift essential tasks to another location or let staff work remotely.

Also think about your suppliers. If one can’t deliver, do you have a backup vendor ready? Every step should focus on reducing downtime and keeping key services running.

Include:

The more specific your plan, the easier it will be to act quickly.

Now it’s time to put everything into one clear, usable document. The way you organize your business continuity plan matters as much as the content itself.

Your plan should be:

Use sections, headings, checklists, and clear labels. Avoid large blocks of text. Include a quick-start summary at the beginning for urgent situations.

Also decide where the plan will live. Keep it stored in multiple formats:

Make sure team members know where to find it. If they can’t access the plan quickly, it won’t help when it’s needed most.

A business continuity plan is not a one-time task. It needs to grow and change with your business.

Run regular tests to see how the plan works in real scenarios. These can be as simple as a meeting or as detailed as a full drill. After each test, note what worked and what didn’t. Then update the plan accordingly.

Review the document at least once a year—or any time you add new systems, team members, or services. If your company moves or switches tools, the plan should reflect that.

Train your team too. Everyone should know their role during an emergency. A well-practiced plan gives people confidence and reduces mistakes under pressure.

Remember: a plan you never update is almost as bad as having no plan at all.

Many people mix up business continuity plans and disaster recovery plans, but they serve different purposes. Both are important, and both focus on getting your business back on track. The key is knowing how they work together.

A business continuity plan covers how your entire business will continue operating during and after a disruption. It includes strategies for keeping your services, communication, and core functions running—even if your office is closed or your tools are offline.

Example: If your building loses power for two days, a BCP might include instructions for working remotely, accessing backup systems, and updating clients.

The goal is to reduce downtime, protect your reputation, and keep business flowing as smoothly as possible.

A disaster recovery plan focuses more on technology. It explains how to restore IT systems, software, and data after a crisis—especially after something like a cyberattack, hardware failure, or server crash.

Example: If your customer database is wiped out due to malware, your DRP would explain how to recover that data from backups and get your systems running again.

The aim is quick recovery of digital assets with minimal data loss.

Both plans are part of a strong business continuity strategy. You don’t need to choose one over the other—they work best when used together.

A well-prepared company builds both. That way, no matter what hits you, you’re ready to respond fast and recover with less stress.

Creating a business continuity plan might feel like extra work, especially if things are running smoothly. But being ready before a disruption hits can save you from much bigger problems later. Here are the main pros and cons to help you see the full picture:

A well-made business continuity plan doesn’t just sit on a shelf—it guides your response when it matters most. And while it takes time to set up, the value it brings during a real emergency is hard to ignore.

If you run a business, manage a team, or rely on technology to serve customers—you need a business continuity plan. It doesn’t matter if you're a solo freelancer or a large enterprise. Disruptions don’t play favorites.

Here’s who should have one, and why:

In short, any business that values stability and customer trust needs a business continuity plan. Waiting for something to go wrong is the most expensive way to realize that.

Let’s say you run a small graphic design agency with a team of six people. Most of your work depends on internet access, client files, design tools, and regular communication.

Here’s what a simple business continuity plan might look like:

This is a lightweight yet useful plan. It helps the business stay functional even if something unexpected interrupts daily operations.

Business Name: TechCore Solutions

Department Covered: IT Infrastructure & Systems

Prepared By: Imran Qureshi – IT Manager

Plan Version: 1.4

Last Updated: April 25, 2025

This plan outlines how TechCore Solutions will maintain and restore critical IT systems during service interruptions. It ensures systems are available, secure, and functional to support business operations during and after a disruption.

This plan ensures your IT systems don’t leave your business exposed during an outage or cyber event. Clear roles, routine testing, and strong backup systems keep operations stable—no matter the disruption.

Disruptions are never planned—but your response can be. Whether it’s a cyberattack, power outage, or server crash, having a business continuity plan puts you in control when things go wrong.

We’ve walked through what a plan is, why it matters, what to include, and how to build one step by step. It doesn’t have to be perfect. It just has to be practical, clear, and ready before you need it.

Start small if you have to. Focus on your most important systems, your people, and how you’ll keep communication going. As your business grows, your plan can grow with it.

The best time to prepare was yesterday. The next best time is now.