5 Reasons Small Businesses Need A Disaster Recovery Plan

Whether a startup or a fully-fledged business making a profit, no company is safe from a potential disaster. 

This topic has been highly evident in recent months, during one of the most challenging periods for companies worldwide. 

For more reasons why investing in a disaster and recovery plan is critical for companies, here's why;

Probability Of A Disaster

Disasters arrive in all shapes and sizes and occur more frequently than you might think. According to the Bureau of Labor Statistics, 20% of businesses annually experience a disaster, such as a flood, fire, or burglary. Moreover, 80% of those companies struggle to bounce back from a catastrophe and shut down after one year. 

This brings us to the first point of why disaster recovery plans are essential. If your business could be affected by a disaster at any moment, take action to ensure that it doesn't happen, and make a plan to get it back up and running if it does.

Cyber Attacks 

The internet has changed business forever. We're heavily reliant on computers to store and send data. Yet, many companies don't have any protective measures in place to prevent a cyberattack, never mind a plan to recover from one.

Small business owners tend to believe that hackers are only interested in bigger prizes from larger companies. In fact, thieves of any kind prefer an easier target. Small businesses are often easier to infiltrate because they don't invest in protective measures for their IT.

Of course, your first port of call should be adequate anti-virus software and safeguarding measures organized by Managed IT services. Once that step is complete, consider options for backing up your data. 

According to the Capterra Study, 2018, 29% of businesses have no data backup. By backing up files to an external hard drive or cloud service, cybercriminals can make it challenging to take advantage of and destroy your business.

Human Error

Did you know human error is one of the main reasons a business loses data? That's right. In addition to data corruption from cybercriminals, innocent mistakes on and offline can cause significant disasters in the workplace. 

Whether employees open a phishing email or forget to save valuable intel on a file, staff training is paramount to prevent risks such as these from unraveling. It helps employees identify malicious content and use the Internet safely. But arrangements should also be in place in case a staff member slips through the net and makes a mistake.

A recovery plan might include an automated backup of files to a cloud system. As a result, if an employee accidentally deletes a document on their laptop, they can still retrieve a copy from the cloud. 

Cost of Downtime 

If a disaster were to happen to your business today, such as a hurricane ruining the premises; how long do you think it would take for your business to begin operating again? With that in mind, how much will that downtime cost your business? 

From building your premises back up to what it was before the disaster, sourcing and purchasing new equipment, paying staff wages, and locating another place to work from if possible. The amount of money you shall lose, and time, not to mention customers, is terrible for business. A disaster recovery plan means it doesn't have to be that way. 

Think of likely urgent scenarios (such as a burglary or fire) that could occur and shut down your business. Solutionize plans you can action in response. For instance, if there was a power outage, you could purchase an emergency backup generator just in case, to tie your business over. It’s also wise to ensure regular maintenance support is available, so you’re prepared in the event of mechanical failure. Services like generator repair in Calgary can be crucial during unexpected breakdowns. 

If there was a flood in the office, think of alternative locations you and your team could work until the office situation is rectified. If there was a flood in the office, think of alternative locations you and your team could work until the office situation is rectified.

Your Well-being 

Running and attempting to nurture and grow a business is stressful at the best of times. A manageable stream of challenges keeps you on your toes and in action mode. However, if you are not prepared for disasters, they can cause too much stress for you to handle, potentially leading you to burn out. 

With no recovery plan waiting to rescue the business, uncertainty, worry, and fear can affect one's ability to cope with a situation that is damaging to one's company's livelihood. 

Creating a plan of action should a disaster occur not only prevents your business from falling into ruins, but it's also there to protect you and support you through a difficult situation.