It’s a good idea to take a look at what we can do to prepare for a disaster. It may not happen, but you never know when it will strike. Whether it’s the threat of a natural disaster or simple, everyday business interruptions, many companies face similar challenges with being prepared for the unexpected.
But regardless of how prepared you think you are, there’s no substitute for proper planning and preparation. Here are some tips on what to consider to avoid loss of productivity.
Maintain up to date contact information
A good first step in preparing your business is making sure you have the right contact information for key people in your business chain and that it is up to date. If the worst happens and your business is affected, it may take time for you to get in touch with customers or suppliers. Make sure that they also have up to date contact information, so making contact post any incidence can be easier.
Create an emergency fund
It may be hard to imagine, but if your business was to suffer damage from a fire, natural disaster, or other events, you would need financial resources at your fingertips. That’s why it’s essential to set aside cash savings for emergency situations. Depending on the scope of your business and its needs, an emergency fund can typically be set up between three and six months of operating expenses.
Get the right insurance
Many times, business owners don’t think they need insurance until they find themselves in an unfortunate situation. The easiest way to protect yourself is to get the right policies and make sure you know how much coverage and what type of coverage you have.
Don’t rely on just one individual
When you create redundancy in your business, you can withstand any adversity. You can literally have several people that can replace the primary person, and the company will still operate successfully without the main individual. If a few key people leave your company, it’s not going to be nearly as bad as if you only had one or two people running the business.
Have a business continuity plan already in place
Analysing how your business works are the first step to understanding how you can protect it and the value that it holds. Business continuity planning will help you create a response plan to enable your business to recover from a disaster and return to normal operations as quickly as possible.
It’s important to know what could disrupt your ability to deliver these services or products when people depend on them, and it’s equally as important to have strategies in place where you can still make deliveries for products of lesser importance.
Final Thoughts
With the above ways to prepare for the worst, your business will be ready to go in no time. However, most businesses don’t have what it takes to make it through the most severe financial disaster. It’s good to always be prepared.
