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How to Disaster-Proof Your Small Business

Michael Deane553 16-Apr-2019

When it comes to natural or manmade disasters, we can’t predict when something will happen, thus planning and prevention are key for small businesses. As a small business owner, you have limited resources and capital, hence ensuring thorough disaster-proofing of your company can go a long way to minimising the impact of a curveball that may come your way.

Never underestimate a good plan as it can be the determining factor of whether your small business can recover post-disaster. All organisations may face a disaster – in fact, 30% of small businesses will experience a natural disaster – but not all businesses will survive the aftermath. As such, you can reduce your stress levels and expenses for post-disaster recovery if you get a head start on disaster-proofing your business.

Sign Up for the Right Insurance Policy

Having the right insurance can help you recover from a disaster much faster and ensure you’ll be operating sooner rather than later. As with most business owners, you may have forgotten to regularly update your insurance policy and in so doing, the coverage limit could be too low or inadequate when it comes to disaster-proofing your company. This is why it is suggested that you review your existing insurance policy to make sure that you’re well-equipped for any major business disruption.

When it comes down to it, it isn’t enough for small business owners to strictly settle for basic property insurance that offers general coverage such as replacement costs of building damages. Think specific and opt for schemes that can include business interruption coverage, reparation costs, clean-up costs as well as natural disaster coverage. There are plenty of insurance options that would suit your small business needs and budget so be sure you sign up for the most suitable policy.

Try to Prevent Fires

Fires are one of the biggest threats affecting businesses, especially small companies. Experiencing a harrowing fire disaster puts small businesses at an increased risk of insolvency within hours of the disaster. What we can learn from the wildfires that severely impacted the Western United States (US) in 2015 and 2017 is that fire devastation happens fast and so do the financial losses that follow. As global climate continues to rapidly change with expected higher temperatures and drier conditions, preventing fires can’t be underestimated.

Fire prevention starts with early preparation and there’s no shortage of ways for you to take precautionary measures. You can contact a local fire authority for advice, and adhere to safety standards such as avoiding excessive electrical outlines and practising caution when initiating fire (lighting candles, for example). Make sure your fire ducts are reliable and your smoke alarms are regularly maintained. Lastly, register for a fire insurance and damage recovery scheme, but again, never skimp on the insurance coverage or you may regret it later.

Store Your Data Safely

Data loss can lead to a missed business opportunity and even worse, bankruptcy. Despite the negative implications of data loss, 96% of business workstations do not conduct regular data backup. With the help of technology, everyone has access to complimentary cloud storage on Google Drive, Microsoft OneDrive or Apple iCloud. Scan and store crucial documents, which according to disaster survivors include:

• Insurance policy

• Passport and birth certificates

• Property blueprint

• Taxes and financial documentation

The National Archives and Records Administration in the US has found that 60% of companies that have experienced data loss will end their operations within the span of six months following the disaster. With such a high likelihood of failure, it should serve as alarm bells to small business owners. However, don’t stop at cloud storage because online data disruption can also happen, which is why it’s as important to practise physical data storage as part of your business’s disaster planning.

Be Ready with a Post-Disaster Recovery Plan

Small business owners shouldn’t undermine the importance of creating a recovery plan for a worst-case scenario. Identifying important aspects to get your business to bounce back after a disaster requires the ability to think ahead in addition to strategic planning. Equally important is guaranteeing that the plan you’ve created is realistic to implement in real life.

As a business owner, you have to consider a recovery plan encompassing your human resources, assets, and physical resources. Among the factors small business owners ought to take into account when coming up with a recovery plan are: access to emergency cash and contacts, procurement of safety equipment, and anticipation of power outages. Once you’re settled on a post-disaster recovery plan, share it with your team so that they’re familiar with the procedure, then store it in a safe, accessible spot.

Just like the definition says, a disaster can happen spontaneously while bringing with it a massive calamity. No business owner can ever avoid the occurrence of disasters, but because your livelihood often depends on the company’s operations, minimising risks is vital. Preparedness and smart thinking could just be the reasons that your company escapes the fallout of a disaster, but this starts by disaster-proofing your business.



Updated 16-Apr-2019

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