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4 Ways Small Businesses Can Handle Disasters Effectively

Philip Trescothick

August 19, 2014

Here is an alarming statistic from the US Small Business Administration : 25% of small businesses shut down  their operations completely after being hit by a disaster. And the overwhelming reason is not simply financial insurance but also the absence of sufficient protection to your property – both physical and digital. Disaster recovery as an investment has been gaining currency after the deadly hurricanes like Katrina and Sandy. So how does a small business insure against such disasters? Here are a few pointers:

Back Up Your Data On The Cloud:

When disaster like hurricanes or flood strike your neighborhood, you can be certain that all your documents and files are going to be washed away. It doesn't help if you have a copy of all the data on a computer or a hard drive – they are going to get corrupted as well. The one most reliable way to keep data secure is by hosting a copy of the data on a remote third party server. This way, you only need to log into your computer and access the remote website in order to get all your data back. If you have hosted your website over Microsoft SharePoint, make it a point to use all of their governance and cloud collaboration services to ensure all of your data is secure.

Have Backup Plans For Everything:

It is not just you who could potentially face a disaster. Your supplier too could face them. And that should not affect your business. Identify every component that is critical for your business and have a backup plan for each one of them. For instance, in the case of suppliers, make it a point to source from more than one supplier. This is not just good business sense from a disaster management perspective, but doing so also helps you get a better deal since it keeps suppliers on their toes with respect to competition.

Get Insured:

Almost every business owner out there can vouch for the safety bracket that insurances provide. However, in a lot of cases, owners only get sufficient insurance as is mandated by law. It needs to be noted that such insurances are always a bare minimum. For sufficient coverage during times of crises, it is always a good idea to identify every potential area that can wreck your business and apply for insurance for each of these areas.

Disaster Tool Kits:

While all the other points above are from the point of keeping your business secure for future operations, there are also some things that you must do for the welfare of yourself and your employees. As the owner, you are responsible for their safety. There are disaster toolkits that are available in the market that you can keep secured in all corners of your office. This typically contains flashlights, dry food supplies, etc. that anybody who is trapped during a disaster can make use of till help arrives. It is also a good idea to arrange for disaster preparation audits and training so that everyone in your team is well aware of what is to be done when disaster strikes.

Disaster can strike any time. But by keeping yourself and your property secure, you can be rest assured that you can be back up in no time. That's the mantra to avoid becoming one of the 25% of small businesses that shut down after each of these disasters.

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