Protecting Your Business From Mother Nature

Stumble It!

The rare February tornadoes that ripped through Oklahoma are a good reminder that Mother Nature can strike your business at any time. Aside from luck, your best chance of surviving is to plan ahead. Here are five simple steps you can take today:

1. Get a disaster preparedness plan

Most successful businesses started with plans, a basic business plan, a marketing plan, etc. Likewise, a continuity or disaster plan is essential to make your business resilient. Chances of survival are greatly reduced without one.

2. Have insurance to fit your needs

This one should be a no-brainer. Your insurance policy should be able to replace many parts of your business. Ensure your policy is customized to fit your needs specifically. For example, say you own a retail store with a certain type of shelving. If half of your shelves get destroyed in a fire, the insurance company will want to replace just the damaged ones. But what happens if exact replacements aren't available? Do you want to settle for mismatched shelves in your store? Your policy should address these types of issues.

3. Be prepared to set up an alternative worksite

Getting back to business as quickly as possible is the name of the game. However, many natural disasters can destroy your original worksite. You should plan to have an alternative place to conduct business, if at all possible.

4. Keep backup copies offsite

Like insurance, this one is a no-brainer in today's tech-heavy world. But, it is often overlooked or simply forgotten. Set up a regularly scheduled back-up procedure for your critical data and keep it somewhere safe and away from your business.

Earlier this month (February), I learned that my own accountant kept her back-up records in her office. In the middle of tax season, she – and by extension, her clients -- would be utterly ruined if a disaster struck. The risk could be greatly reduced by simply storing her data somewhere – anywhere – else.

5. Have a cash reserve to pay bills and employees

After a disaster, you're going to need money. Bills will need to be paid and, more importantly, your employees are going to need it. Following a disaster, you will need your workers so you can get back to business. They, on the other hand, are most likely going to need cash to take care of their families. If you have a cash reserve, you will be helping both yourself and them.

In this day and age, having a disaster plan is becoming a critical part of surviving in the business world. It just makes good common sense. These five steps are not comprehensive, but do give you a good start on the basics of a plan.

Disaster Preparedness Consulting, LLC