As business owners, we want to remain optimistic about our business's future. But life can happen, and we need to be prepared. A good business owner thinks about all the risks to their business and has a plan in place to reduce or eliminate them. In the past year, we've seen floods, tornadoes, hurricanes and more. And those are just the weather disasters. Are you ready?
A Nationwide survey revealed that three out of four small business do not have a disaster plan. The same survey noted that 52 percent of small business owners thought it would take three months to recover from a disaster.
The most common solution is to create two plans:
- A
disaster recovery plan, which details the steps needed to recover the
business from a catastrophic loss
- A business continuity plan, which details the steps needed to keep the business running in case of a major loss, such as a loss of electricity, location, or key personnel
There's a lot of help online to help you create your plan. A few of the major items that should be covered include:
- Employee
safety: you'll need an evacuation plan in case of a disaster that is life-
or health-threatening.
- Communication
plan: how will you reach employees in an emergency?
- Electricity
contingency: will you need to access a generator?
- Internet
contingency: can your business survive without the internet for long
periods of time, or will you need to find a way to get connected?
- Location
contingency: if your worksite is inoperable, do employees have another
place to report to?
- Employee
roles: who will carry out the plan?
- Private
data: how will you safeguard private company and customer data?
- Systems:
do you have an inventory of hardware and software, including vendor
technical support contacts? How will you prioritize which system to get
back up first? Do you have agreements with vendors who can come to your
aid quickly?
Creating a disaster recovery plan can be the lowest priority item on your to-do list as a business owner - until it isn't. If you have a lot to lose, then consider spending some time on a plan to give you peace of mind.