The views expressed by the business participants are their own.
Bad things happen to good businesses, no matter how big or small. A hard drive can fail and fragment your tax records. Toxic chemicals can be spilled or a coffee pot can catch fire, ruining the works. A refrigerator in a lab can fail, killing important biological samples. Beyond your desk, there are acts of terror and earthquakes. You can get hacked, the economy slows down or new laws are passed that mean you can’t do business at all.
If there is an epidemic that destroys the economy, you should not rely only on the government as they did in 2020. The government may be able to help, but you should never put your business on it. Every business has a responsibility to ensure its survival in difficult and turbulent times. That means that any business – or person or family, for that matter – is wise to take steps to solve problems when they occur.
Having an emergency plan can save your business. One notable example is that of South Carolina-based Cantey Technology, which hosts hundreds of servers for its customers. When lightning struck its building and destroyed its network infrastructure, melting its cables and burning its computers, emergency planning saved the day. This would have been dangerous for Cantey and its customers. But Cantey had moved its client servers to a remote data center, allowing uninterrupted service to its customers. Not all businesses are so lucky: 40% of small and medium-sized businesses do not reopen after a natural disaster and another 25% fail within a year of the disaster.
Related: 5 Ways to Prepare Your Business for Natural Disasters, Disasters and Loss of Income
Planning for failure
Knowing that critical failure is imminent for all businesses has led to the creation of related fields of business continuity and disaster recovery. According to the Business Continuity Institute, “Business continuity is about having a contingency plan in place, so your organization can continue to operate with as little disruption as possible.” Disaster recovery, according to Andrew Hiles book Business Continuity Management, Global Best Practicesit specifically addresses what is needed to restore and… information technology, infrastructure and communications capabilities after an incident.
What will you do if something bad happens and threatens your ability to do business? If you plan, you can win. In order to reduce – or, in the right cases, avoid – downtime, you must develop a business continuity plan (BCP). Acting quickly can not only save your revenue, but it assures your customers that you can reliably meet their needs.
Another famous military saying is that no plan is too heavy when dealing with the enemy. But there is little doubt that it is better to plan than not.
Related: 5 Reasons Why You Should Create an Emergency Response Plan for Your Business
8 steps to disaster recovery
Your business will be different, but these steps provide a foundation for doing the best job you can of minimizing the damage from any potential incident.
- Do a “risk assessment.” This is a good term to identify anything that can affect the performance of your business. List the events that could disrupt your business: a natural disaster, equipment failure, power outage, malfeasance from disgruntled employees, the loss of a key employee or a cyber attack.
- Find the most important tasks for your business. This will depend on what your business is. A landscaping business needs its yard tools and transportation. A web design business requires computers, internet access and power. Whatever these things are, be as specific as possible.
- Create a disaster recovery plan. For each of the problems listed above, think about how you would respond in the event of a disaster. Will the hurricane affect your ability to deliver products? Some events will be more likely than others, so find a solution for those first. Plan for a blackout before you plan for an outside attack, for example.
- Back up data regularly. Every business has records it needs to operate, including employee records, tax records, sales records, project information, customer lists and even recipes. The cloud offers an easy-to-use option, especially in concert with a document management system (DMS), which you may already be using to record your business’s receipts. You should also take the time to learn about digital security.
- Make an emergency communication plan. When there is a crisis, time is of the essence. It’s not the first time to learn your ISP’s weekend phone number. Key employees will need to take action first, then retailers who may need to change shipping or delivery, then customers who may need to know they can still visit or shop online, and other stakeholders. You will need up-to-date contact information for all key personnel, and it should be easily accessible.
- Train your employees. Once you have a plan, hold regular training sessions to teach your employees what to do. This could be a pizza party for a small business like a nail salon; it could be a full afternoon or more for an online retailer. Rehearsals and simulations help everyone remember the plan — and identify any weaknesses before a real emergency disrupts your plan.
- Work with key partners. Communication is not enough if you have not prepared the seller or client for what to do in the event of a flood or terrorist attack. Make agreements in advance. Talk to service providers, equipment vendors, shippers, office space providers… anyone you can count on if something is disrupting your business. Do it before an emergency so you don’t have to fight everyone if there is a transport strike or a bridge collapse.
- Check and update regularly. Have you made your plan? Congratulations. Don’t leave it in a desk drawer or buried under restaurant menus on a bulletin board. Don’t forget if you’ve changed dealer or if you’ve added a new source of income. Review your plan and make sure it’s still working.
Related: How to Strengthen Your Business Against the Threat of Natural Disasters
A fire extinguisher if your business is on fire
A stove fire in your kitchen can quickly turn into a disaster without a fire extinguisher nearby. Your business needs the same. Whether you take your cue from Amazon’s multi-state creation, the government’s plan to keep banks and credit unions connected or an astronaut’s warning to “prepare for the unexpected,” your small business can greatly improve its survival when disaster strikes.
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