There are circumstances beyond our control that can affect our company‘s operations and how we do business. Disasters of all sizes are responsible for preventing businesses from opening, servicing customers and receiving materials from suppliers. According to the U.S. Small Business Administration, disasters are responsible for an estimated 25 percent of businesses not being able to ever reopen again.
Major disasters, such as hurricanes, earthquakes, fires and floods are rare, but can be responsible for a halt in business operations. Smaller, more common disasters include power outages and computer crashes. No matter how big or small the disaster is, it is important to have a plan in place before disaster strikes.
Be prepared and create a disaster plan for your business by taking the following steps:
- Review all of your business insurance policies and update coverage if necessary.
- Develop a contingency plan, including a list of backup vendors and suppliers.
- Set up a 24 hour hotline for employees to call for updates and instruction.
- Create a schedule to regularly back up all files and critical data and store at a separate facility more than 50 miles away from your business.
Being prepared will help reduce the amount of time and money needed to get your business back up and running after a disaster strikes.