Be Prepared: Disaster-Proof your Business

Summary: You can never predict or stop disasters from falling into your business. However, you can prevent huge losses and recover quickly if you have a contingency plan in place.

Knowing some strategies to recover losses in cases of natural disasters or man-made threats can truly save your livelihood.

Most business owners do not have a contingency plan when disaster strikes. Maybe they don’t realize that unexpected calamities such as fire, floods, earthquake, or other acts of nature can severely destroy their source of livelihood.

Contingency plans include knowing where you can contact your insurance agent and where you can transfer your merchandise during emergencies. It will also be helpful to draw maps of physical locations and shut-off valves for electricity, gas, and other utilities.

Every variable should be taken into account. Your plan should also include action steps in cases of robbery, riot, or civil unrest.

Contingency Plan Strategies

So why not start assessing your situation today? Here are some tips to jump-start your plan:

Establish emergency cash reserve

Set aside an emergency fund for unexpected disasters. This way, you’ll most probably pay your rent and employees without resorting to layoffs or business closure.

Keep insurance current

A growing business could be wonderful news. However, growth also comes with responsibility. Make sure that your insurance coverage can take in all your business equipments, supplies, and other assets. It’s wise to meet with your insurance agent regularly to obtain insurance riders or extra policies. It’s better to be safe than to reach into your pocket and cover these shortcomings.

Store records and physical papers off-site

Printed receipts and bills may be important to you. Typically, banks offer safety deposit boxes where you can store all sorts of paper records securely. Doing this does not only protect you from disasters happening in your business, it also ensures that your finances are protected. For example, even if your supplier’s office was burned to the ground, you can easily supply them with actual receipts to prove that you have already paid for your orders.

Back-up computer files

You’re probably doing this already. But why will you back up your files and store it in your office computer too? The best way to keep your digital records safe is to store them outside your business location. For example, you can search in another town or another country for a mainframe computer service that can offer backup space. This way, you know that whatever happens to your business, your data or files will be safe.