As business owners, we want to remain optimistic about our business’s future. But anything can happen, and we need to be prepared. Good business owners consider all the risks to their business, and then put plans in place to reduce or eliminate them. In 2017, we’ve had floods in the Midwest and California, a healthy dose of tornadoes, an ice storm earlier in the year, and of course, three of the most devastating hurricanes in recent years. And those are just the weather disasters. Are you ready?

In 2015, Nationwide ran a survey that revealed that three out of four small business do not have a disaster plan. In addition, the same survey noted that 52% of small business owners thought it would take three months to recover from a disaster.

The most common solution is to create two plans:

  • A disaster recovery plan, which details the steps needed to recover the business from a catastrophic loss
  • A business continuity plan, which details the steps needed to keep the business running in case of a major loss, such as a loss of electricity, location, or key personnel

There’s a lot of help online to help you create your plan. A few of the major items you need to cover include:

  • Employee safety: You’ll need an evacuation plan in case of a disaster that is life- or health-threatening.
  • Communication plan: How will you reach employees in an emergency?
  • Electricity contingency: Will you need to access a generator?
  • Internet contingency: Can your business survive without the internet for long periods of time, or will you need to find a way to get connected?
  • Location contingency: If your worksite is inoperable, do employees have another place to report to?
  • Employee roles: Who will carry out the plan?
  • Private data: How will you safeguard private company and customer data?
  • Systems: Do you have an inventory of hardware and software, including vendor technical support contacts? How will you prioritize which system to back up first? Do you have agreements with vendors who can come to your aid quickly?

Creating disaster plans can be the lowest priority item on your to-do list as a business owner – until it isn’t. If you have a lot to lose, then consider spending some time on a plan for your peace of mind.