A couple weeks ago, the Northern Arizona area suffered a cable outage that affected businesses in the area in different forms. Stepping into one of the local big box stores underscored what backup plans provide as they switched to alternative data systems and continued on with commerce without missing a beat. Conversely, a visit to a local restaurant found them only able to take cash transactions and no over-the-phone orders. The restaurant barely had anyone in the establishment. Fortunately, lines were repaired within a day and all businesses were able to get back to normal. A better example would be the fire that struck Whiskey Row businesses a couple of years ago, rendering closings for months and in a couple of instances, some small businesses never reopened.
These are examples of why a disaster recovery plan is virtually mandatory for all businesses, whether large or small. Planning in advance for most types of business interruptions can save the life of an entity. The process of putting a recovery plan together doesn’t require a professional recovery specialist for most business owners. However, an owner should look at what the key factors, both inside and outside, would substantially damage operations and make a plan to address those factors as quickly as possible. This seems like common sense but it falls as a low priority to many owners whose focus is on day-to-day operations. Perhaps it should be one of the top priorities.
Think about the most critical points of your day-to-day operations. Are you data intensive? Can you function without the normal services? Do you need access to cash in your operations? Do you have insurance to cover your expenses if you are down for a substantial period? Who takes charge in the event of the owner or a key manager being unable to perform their responsibilities?
First, address the key functions of the business and the staff that is responsible for seeing that those functions occur. Nevermind what might cause a disruption in business but rather how to respond to a disaster. If you have a data intensive operation, is there a plan to back up that data daily and to a server that is not at the business location? Is there an alternative plan to handle communications if the main format is unavailable? Sales need to be conducted without the normal transaction flow. Can you retain key staff if a catastrophe closes the operations down?
Second, now plan out how you would address each of these issues to recover the business model as quickly as possible. In the examples above, data would be backed up either in a different location or through a third party vendor. Communications would be switched to alternative sources (think cell phones or a third party vendor). Cash receipts and card transactions should have multiple vendor options. Have a complete list of contact information for all employees and key vendors. Know how to reach your insurance broker or agent. Keep in mind that these professionals regularly maintain lists of recovery vendors that can be quickly put into place. Finally, prepare your recovery plan in writing and have copies available to the staff and have them review regularly.
Saving a business is just as important as building the business. Put some thought into how you want to recovery from disaster. QCBN
By Tom Blake