You may not be aware of the fact that around a quarter of businesses are unable to continue after a major disaster strikes. Small business owners are most at risk, as they are often the least prepared for an Act of God.
It is natural to think that a large-scale disaster will never strike where you are, but in reality, floods, earthquakes, fires, and man-made disasters can strike without warning anytime, anywhere.
You may consider preparing for an unexpected disaster low on your priority list when, in fact, making provisions for post-disaster recovery could one day save your business and, in turn, your family. Statistics show that the speed with which a business recovers after a disaster determines how successful it will be afterward.
With the right protection, your business will be able to continue and customers will be impressed with how you survived and will be confident to transact in the future. Of course, businesses with an office should make a decent emergency response plan, including posting escape routes and plans in the building, and letting staff know where all the evacuation routes are.
It’s also a good idea to get a survival kit made up of items like a flashlight, trash bags, as well as a digital camera that can be used to take pictures of property damage, something insurance companies will most likely require. Ask any business affected by the recent flooding in the UK and they will tell you the same.
Don’t get caught up in disaster
Borrowing money for reasons like wanting to expand your business or help you get over a temporary cash flow problem is all very well. What you don’t want is to be forced to take out a loan as a result of a natural disaster for which you did not adequately prepare.
One of the most important things to consider is adequate insurance. So after reading this, make reading your current insurance policies your next task. Determine what coverage currently exists on your property and facilities. Check to see if it’s broad enough to cover you in the event of a natural disaster, and consider getting insurance to cover you if your business is forced to close its doors for an extended period.
Follow up that task with something equally important: back up all your electronic data. Most of your business transactions will be conducted electronically, and without important financial and customer data, businesses will find it very difficult to reestablish themselves. Save all your files, including past years’ tax returns, and make a couple of copies, one of which should be kept offsite.
It’s also worth considering a communication strategy, so you can communicate with both employees and customers while your operations are down. And if you want to be able to continue operating while your office is down, consider a temporary location that you can use while dealing with the impact of a disaster.