Disaster preparedness should always be on the priority list of business start-up owners. Unfortunately, not all entrepreneurs out there seem to understand that everything can disappear in a matter of seconds during the onslaught of a powerful hurricane or tornado or floods.
The latest Small Business Disaster Survey showed that 74 percent of small businesses in the United States do not have recovery plans in case disasters damage a portion of the company. What’s more surprising is that 84 percent of small businesses do not have natural disaster insurances, and that 71 percent of these companies do not even have generators.
The possible cause of this phenomenon is the fact that around 76 percent of small business owners in the United States have never been affected by a major natural disaster. And while it is reassuring that not everyone is going to be devastated by a hurricane or tornado in the next few years, the reality is that the number of major weather events that hit the country is continuously going up.
Data from the National Oceanic and Atmosphere Administration showed major weather events (those inflicting damage of at least $1 billion) has increased from around two per in the 1980s to around 10 per year in 2010. More alarming is the data showing that 65 percent of businesses operating in the US are located in areas that have a high risk of getting ravaged by a natural disaster.
With this, it is only fitting for small and large business owners to invest in good disaster recovery plans to mitigate the possible harsh effects of natural weather disturbances to the companies. Some believe that “disaster recovery plans” are unnecessary expenses for businesses that need to limit its financial burden in order for it to survive. This is not a true claim.
Creating a plan does not need a lot of money. In fact, business owners can develop their own using information that they can get from the Internet or other sources. Planning does not have to be very extensive, but rather a concrete precaution in case of disasters.
Such plans should include the creation of back-up files in strategic locations in case a disaster destroys the original ones in the main office. Having a back-up power source is also a good idea, especially for businesses that rely on technology and machinery.
An alternative “home base” must also be established or conceived in case the main office becomes unavailable due to disasters. The plan should also talk about basic evacuation plan for employees in case an abrupt disaster strikes while everyone is in the middle of production.
No one wants to experience a disaster destroying his or her business. However, having a plan to address this issue is always better than having nothing at all.
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