In the wake of the Oklahoma tornado earlier this year that has caused billions of dollars in damages, and the impending hurricane season, it is important to remind small business owners to have a plan for when disaster strikes. The US Small Business Administration estimates that 25% of businesses do not reopen after a major disaster. When businesses do reopen, the longer it takes, the more revenue is lost. Cash flow can be tight.
The first thing businesses should do is assess the risk of their geographic area. It is helpful to know what you could be up against so you can do your best to prevent disaster from greatly affecting your company. This can include ensuring equipment is anchored down or may be as simple as buying a back-up generator. Do remember, though, that disaster does not necessarily mean a natural disaster. It can also come in the form of a theft or a water main break. These types of situations can never be anticipated so it is important to know how to react to keep your business operating during any problem that arises, big or small.
Other points to consider are having a chain of command in place for employees. Be sure everyone knows their role and how to get ahold of those they are responsible for. Have a plan for vendors or customers in case product distribution is affected either coming in to the company or out to customers. Know which business functions are essential and find a way to continue with the critical daily functions off site if your building has been damaged. Data back-ups should be done on a regular basis to prevent the loss of important information. If you need any other tips to help protect your business, contact us at Demorest Law Firm, PLLC, or our colleagues at Numerico, PC.
This guest post was authored by Emily Fishwick of Numerico, PC.
