Business Resilience and Disaster Preparedness

Business Resilience and Disaster Preparedness

Small Business Disaster Preparedness

What would you do if your business suffered a ransomware attack today?
Do you have a contingency plan in case of a flood, fire or (dare we say it) another pandemic?

Unexpected events can, and do, occur at any time and small businesses get hit particularly hard.
Small businesses are critical for job creation, innovation and community development. However, running a small business carries significant risks.

60% of small businesses fail within 6 months of a cyber-attack.

Considering this, small business owners need to be prepared for the unexpected to ensure their longevity and success. Here are 10 tips to help you be prepared for anything!

Create a Contingency Plan

Outline a set of procedures that will help your business respond to unforeseen events.
The plan should outline specific steps to take in the event of an emergency, including who will be responsible for what tasks and how to communicate with employees, customers, and suppliers.

Maintain Adequate Insurance Coverage

Business Interruption and Cyber Insurance are particularly important in the mitigating risks associated with an unforeseen situation.

Diversify Your Revenue Streams

Small businesses that rely on a single product or service are at greater risk if there is a supply chain disruption.
Diversifying your revenue streams can help reduce this risk.

Build Strong Relationships with Suppliers

This ensures a reliable supply chain. Having supplier options can also help to reduce the impact on your business.

Keep Cash Reserves

Small businesses should keep cash reserves on hand to help weather unexpected events. As a general rule a business should keep at least six months' worth of expenses in cash reserves.

Build Strong Outsourcing Relationships

If you try to do everything in house, your business may be at higher risk.
Build strong outsourcing relationships with a trusted IT provider and other critical support services.

Check Your Financials Regularly

Stay on top of your finances to ensure that they are on track to meet your goals and you are able to identify potential issues early on.

  • Track income and expenses
  • Create and review financial statements
  • Regularly meet with a financial advisor

Invest in Technology

This can help small businesses prepare for unexpected events. For example, cloud-based software can help businesses store their data off-site and ensure that it is safe in the event of a natural disaster or cyber-attack. Technology can also help automate processes which reduces the risk of errors and improves efficiency.

Train Employees for Emergencies

This includes training for natural disasters, cyber-attacks and other emergencies. Businesses should also have a plan for communicating with employees during an emergency. (We have an excellent cyber security employee training program available, just saying)

Stay Up to Date on Regulatory Requirements

This helps ensure that you stay compliant with all latest laws and regulations. Non-compliance can result in fines, legal fees and damage to your business's reputation.

Small businesses face many risks. But by following these tips you can stay prepared.

We can help you improve your security posture, ensure business continuity and assist with disaster preparedness.