PREPARING FOR DISASTER
Preparing Your Business For Disaster
In the wake of so many natural disasters in 2017— including Hurricanes Irma and Harvey as well as the California wildfires— do you ever think about whether your business would be prepared for such a disaster?
The Wall Street Journal estimated losses from these two catastrophic hurricanes at upwards of $ 50 billion, and many businesses will never recover. The Small Business Administration( SBA) was reportedly quick to act in the wake of Hurricane Harvey, approving a record number of loans by the next business day. These loans were interestand principal-deferred, providing an opportunity for many businesses to regroup and get“ back on their feet” before having to worry about repayment. Yet according to estimates by the Federal Emergency Management Agency( FEMA), between 40 and 60 percent of small businesses are forced to close following a disaster of this magnitude.
Most experts forecast that climate change will contribute to increasingly severe
“ NO MATTER THE CAUSE OF THE DISASTER— WHETHER NATURAL OR MAN-MADE— BUSINESSES CAN PREPARE TO GET OPERATIONS RUNNING AGAIN AS QUICKLY AS POSSIBLE.” weather occurrences in the future. Granted, businesses have no control over when they will occur and how intensely they will strike. But natural disasters, such as floods, hurricanes, and wildfires, are not the only cause of business disasters. Manmade crises, such as a computer data loss, accidental fire, supplier shutdown, or other business interruptions can also seriously threaten a small business.
No matter the cause of the disaster— whether natural or man-made— businesses can prepare to get operations running again as quickly as possible. The bottom line is that the more prepared a business is, the more likely it can bounce back following a catastrophe rather than go out of business entirely. Even small businesses should develop disaster recovery plans, working with their insurance agent and perhaps even a consultant specializing in disaster preparation.
If you prefer to get started on your own, there are several steps you can take to get the process going. Many of the tasks
28