Business Disaster Planning

This is a topic that came up at the latest Selectboard meeting in the form of document scanning. I love this topic only because it involves so many different types of technology and you learn a lot more about what you do as a business. I thought I share some of what I've learned.

Disaster Planning/Business Continuity Planning are similar but I'm sure vendors will present them in different lights. Both focus on learning about your business and in the event a disaster occurs, have a plan to put in place. Disaster is as broad as the type of business. Technology companies could suffer from power failures or flooding. A bakery could have broken equipment. A law firm could have a computer/server that held case files break. Almost all business are susceptible to fire and flood. These are two of the worst because paper and technology don't survive well and the cost to recover the original document is expensive.

Your plan should start with identifying where your records are, what you need to run your business and how long you could afford to be out of business if something happened.
Where:
If you have mostly paper files in your business, do you have all the same information on a computer or a copy elsewhere?
If you have computer files, are they backed up at another location?
What:
What services can you perform if you lose major pieces of equipment?
Do you need your old records immediately?
Do you need an office?
How Long:
With the resources you have, how long can you afford to be out of business while recovering?
How much income would you lose during that time?

Backup copies of computer files should be stored in two places, one on site (backup harddrive/ tapes/ flash drive) and off site. That backup won't do any good sitting next to your computer in a flood or fire. It will come in handy if the computer breaks or a file gets deleted. The off site if your disaster copy in case something happens. Computer files will usually let you recreate your invoices, but what about the invoices a vendor sent your or ones you've paid. If could take weeks or longer to get copies of those again.

If you provide a service, do you have a vendor where you can get replacement equipment in a timely manner? Have you talked to that vendor lately to know what replacement equipment would cost and if they have it. Some equipment requires weeks of lead time, including computers and this needs to be considered when planning. You might need to plan to use some lower grade equipment while your replacement is being made. If your physical structure suffers a loss, can you still provide your service. If not, have you spoken with other local business to see if you could share space with them in these events. An agreement to temporarily share space could benefit both businesses if it is mutual. They might need the same type of space you have to share in an emergency.

Figuring out how long you can be out of business helps to decide your replacement options and justify some of the costs you might have to pay to put a plan in place. Making a plan won't cost you anything but time, but could save you the hassle of figuring everything out later.

Make your plan, inventory your equipment in detail and talk through your plan with others to see if something was missed.