The Engineering Mind
by George Grayson
Local Impact, statutory controls and public issues
A business impact analysis estimates the negative outcome of disruption of a business function and process and accumulates information needed to progress recovery strategies. During a risk assessment potential loss scenarios should be outlined. Many operations can be interrupted by the failure or lateness of a goods supplier/delivery or misinterpreted instructions of a process.
If your company is awarded a Kitemark license, it means that you are demonstrating your commitment to providing a quality product or service to your customers. Its a product and service quality certification meaning that the process is an in depth test of consumer products. It is used to point out certain safety issues where they are most needed, a few products it would be used for are smoke alarms, bike helmets and lighting.
Local and National constraints
A business plan needs to be realistic, so it is important to set out in detail the constraints that are likely to act as limits on business activity. A supply chain problem places a major additional constraints on businesses. A supply chain consists of a network that contains suppliers, manufacturers, distributors, retailers and logistics provides that allows businesses to get their product to customers. If a manufacturer's stops producing or a retailer declares bankruptcy, all the other businesses in the supply chain could suffer financial losses.
Economic constraints include insufficient access to proceed capital, expansion and rising interest rates. Small businesses should try and build up their capital flow budgets early to deal with the changes of financial conditions meaning that it'd be easier for them to look at how much capital they can spend. Startups should not rely on bank loans or venture capital to fund their businesses plans, majorly in the first few months of operations because they could easily go to negative numbers and playing with loans is never been suggested. Inflation could mean increased raw material and labor costs, which would affect profit increase. Also rising interest rates mean higher interest payments, which could affect a company's ability to pay dividends or plan for growth.