As business owners, we want to remain optimistic about our business’ future. But life can happen, and we need to be prepared. Your QuickBooks consultant Orange County has created a list of items to be considered for your business emergency plan. A good business owner thinks about all the risks and has a method in place to reduce or eliminate them. In 2019 alone, California was bombarded with a series of high magnitude earthquakes, wildfires, and a record amount of rainfall. And these were just weather disasters. Are you ready?
In 2015, Nationwide ran a survey that revealed that 3 out of 4 small businesses do not have a disaster plan. The same survey noted that 52% of small business owners thought it would take 3 months to recover from a disaster.
The most common solution to surviving a disaster is to create two plans:
- A disaster recovery plan – which details the steps needed to recover the business from a catastrophic loss.
- A business continuity plan – which details the steps needed to keep the business running in case of a major loss, such as a loss of electricity, location, or key personnel.
There is a lot of help online to help you create your plan. A few of the major components that should be covered include:
- Employee safety: you will need an evacuation plan in case of a disaster that is life or health threatening.
- Communication plan: how will you reach employees in an emergency?
- Electricity contingency: will you need to access a generator?
- Internet contingency: can your business survive without the internet for long periods of time, or will you need to find a way to get connected?
- Location contingency: if your worksite is inoperable, do employees have another place to report to?
- Employee roles: who will carry out the plan?
- Private data: how will you safeguard private company and customer data?
- Systems: do you have an inventory of hardware and software, including vendor technical support contacts? How will you prioritize which system to get back up first? Do you have agreements with vendors who can come to your aid quickly?
Creating a disaster recovery plan may be the lowest priority item on your to-do list as a business owner – until catastrophe hits. If you have a lot to lose, then consider spending some time on a plan to give yourself peace of mind.