Is Your Business Prepared to be Interrupted?

Jim Blasingame

Seven years ago, on August 14, 2003, a single outage in the electric grid cascaded across eight northeastern states, putting 55 million people in the dark for days.

The Great Blackout of '03, which also temporarily shut down thousands of small businesses, was a catastrophic reminder that we're all one squirrel-in-a-transformer, fire, hard drive crash or computer virus away from being out of business. Indeed, one survey revealed that three out of four small business owners believe they will have a business interruption event in any given year. Alas, in that same survey, only 20% said they were prepared.

Are you prepared to deal with a business interruption event? Here are a few ideas.

Operational recovery
What would you do if your building became unavailable to you or your customers?

1. Instead of desktop computers, purchase laptops with docking stations that allow key employees to work and connect remotely, both internally and with customers. And make sure they have high-speed Internet connections at home.

2.  Identify and become proficient with web-based applications that can serve as an alternative for any installed programs that may be lost.

Financial recovery
A significant part of the working capital of most small businesses is from cash flow. What would happen if your cash flow was interrupted?

1. Consider purchasing a "business interruption" rider on your business' property and casualty insurance policy that will pay you cash upon the acceptance of a claim.  Be sure to read the fine print - all policies are not created equal.

2. Maintain a close working relationship with your banker so you won't have to introduce yourself to the person you're asking for a disaster loan.

Data recovery
Small businesses are using digital assets more and physical assets less in the execution of their business model. Are you prepared to protect your data as comprehensively as you protect your building, equipment and inventory?

1. Assign one person to be in charge of keeping all computers enabled with a proven anti-virus, anti-Trojan, etc., program, and keep them current.

2. Regularly copy critical data from your hard drives and store it offsite, plus back-up your date with one of the cloud-based data back-up and recovery firms. Search for "online data back-up."

Write this on a rock ... The only people who never experience a business interruption event are those who don't have a business.


Jim Blasingame is creator and host of the Small Business Advocate Show.
Copyright 2010, author retains ownership. All Rights Reserved.


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