Having a backup plan is never a bad idea. In fact, it’s favorable to have a plan – especially if you’re a service station owner. You never know when disaster might strike, and if you don’t have a business continuity plan in place, you might just get yourself stuck in a difficult situation.
Due to the recent floods in Australia, continuity plans have been on our minds more than ever. Namely, why it’s so important to have them.
We came across this story that will help you see why it’s necessary to put a business continuity plan in place. As we’ve recently learned, you never know when something might go wrong.
The Fire That Hit Anderson Group
Anderson Group is a company that makes agricultural equipment in Chesterville, Quebec, and last winter, a huge fire destroyed 75% of their factory. President and CEO of Anderson Group, Patrice Desrochers, was in the Czech Republic when it happened – it was a heart-wrenching situation, especially because Desrochers had just completed buying the company a few months earlier.
A Disaster at the Worst Time
The company had been expanding rapidly when the fire hit. Over three years, sales had increased from $15 million to $24 million, all because of the hard work that Desrochers and his partners (Frédéric Lavoie and Luc D’Amours, who have both since left the company) put in.
Of course, a huge fire will threaten that growth. It created about $11 million in losses. But the three partners weren’t willing to take that loss lying down.
The Plan
Big, detrimental events like this fire can have major negative effects on a company. But it’s not just fire that your service station should be prepared for. You must also consider technology system failures, natural disasters (like floods), and more. Consequences from these occurrences have the potential to empty your wallet and lead to bankruptcy.
That’s why having a business continuity plan is so important. If you make a plan to avoid missing critical steps in the aftermath of a disaster, you’re on the right track to getting back on your feet.
As for Desrochers and his partners, the fire at their factory began on Wednesday night. On Thursday, they were on the phone with their financial partners and employees. By Monday, the first step of their action plan had been taken.
Build It Back Up
The three partners decided to rebuild their factory in Chesterville – one that’s 20% bigger than the building that burnt down.
As for the rest of their plan, they divided up the responsibilities and got to work. Desrochers handled administration, accounting, and the computer network. D’Amours was on the hunt for a temporary facility until the new one could be finished. Lavoie was in charge of maintaining the integrity of research and development activities.
Five weeks after the fire, every employee was back at work and production was at 95% of its pre-fire level – all thanks to a seamless, functional business continuity plan.
No one wants disaster to hit their service station, but being prepared for it is always better than getting caught off guard. The recent floods on the east coast of Australia have reminded us that disaster can strike at any time causing a service station to be completely destroyed. The way you can get prepared is to create a business continuity plan – then, you’ll stay one step ahead of the unpredictable.