Disaster Planning Tips for Your Small Business
Disasters are not part of our daily survival, but they do happen - in nature, and in business. Be proactive and have a disaster recovery plan ready, especially in terms of data redundancy if you are an information-intensive business.
Some entrepreneurs mistake disaster planning as a tool for big companies only. On the contrary, small business should take disaster planning more seriously because most of us do not operate in several locations. It means all our resources can be destroyed by a single disaster - be it a hurricane, fire or something else. The big companies, on the other hand, can simply transfer to other locations. In general, the cost of preparation is a lot cheaper. Below are some of the things you can include in your scenario planning:
Make a Disaster List
Brainstorm with employees, disaster planning experts, and if possible the local fire department. Identify all possible problems you might encounter given your location and the nature of your business. Once you identify the most probable disasters, create detailed plans and more importantly, run monthly drills to familiarize your people.
Backup Your Documents
Every business keeps information such as sales report, inventory levels, financial statements, and other important transactions. In some cases, entrepreneurs also leave their personal documents in their office. What you should do is to have a backup of these documents in both hard and soft copy. Here’s a checklist:
- Tax returns
- Credit cards
- Personal and business insurance policies
- Contact information of your suppliers and other partners
- Bank statements
- Employee records
- Medical records
- Legal documents like power of attorney and supply contracts
- Financial statements like Balance Sheet and Income Statement
