Why emergency preparedness is important for small businesses

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Over the last two decades emergency preparedness for business has emerged as a prominent topic. Planning for unexpected emergencies is not a new issue, but it is one that has begun to go beyond the talking stages and brought into action by many organizations. Yet, despite this progress, there is still a long way to go. Many small businesses still do not establish a disaster plan.

Staggering statistics

Organizations which are not prepared for any unexpected event, be it a natural disaster, terrorist attack, fire, or even a computer virus, can be extremely costly. Constructing a solid business continuity and disaster recovery plan can help with emergency preparedness and help the organization get through a disaster or unexpected interruption. Organizations which can effectively accomplish this have a much higher success rate for recovery and are able to sustain.

Yet, despite this, according to a 2015 survey geared towards 300 small businesses, a whopping 75 percent said they did not have a plan in place. Other statistics are staggering. Did you know 90 percent of businesses that do not reopen quickly, as within five days, ultimately fail?

Ripple effects of not having a plan in place

Small businesses which fail have a ripple effect on society (as they are usually the businesses most affected) and those that do not plan for potential disaster significantly increase their risk for loss and the loss of jobs. With threats constantly looming in various forms, emergency preparedness is and should be, a natural part of strategic business management. 

Organizations that do not implement emergency preparedness, and even those that do but do not fully finish the process, can ultimately suffer failure. This factor alone should illuminate the critical need to plan for disaster before it happens. 

Halfheartedly-designed plans

Historically, businesses that even acknowledged emergency preparedness had only half-halfheartedly put plans on paper with a general idea of how to implement business continuity. However, rarely did these plans come to fruition. While the intention was good, the problem with this is plans which were not fleshed out fully turned out not to be of any use in the event of a real disaster, small business or otherwise. And even if there is an actual plan in place, it should be updated annually.

Testing a plan

However, creating a plan is not enough. While a well-researched, documented and thought out plan is good, the plan is not finished until it is tested to ensure it actually works. Testing is especially critical now that technology plays such a vital role in most modern organizations. When technology goes down, many businesses come to a standstill. This downtime is very costly, and especially expensive if valuable data is forever lost. Backups and other planning for preservation of data should be carefully implemented because all it takes is one disaster to wipe out any company which relies on electronics and digital information. 

Why do so many small businesses not invest in a strategy?

One can only speculate why some businesses avoid this important task in this day and age. The fact it is expensive and time consuming are the primary reasons. However, in some instances, it could be complacency or "that won't happen to me" type of mentality. Or it could be denial or just a lack of initiative. Unfortunately, whatever the reason, that won't help in a situation which emerges unexpectedly. The reality is an emergency situation can happen to anyone at any time.

Society, in general, has become more acutely aware of the need for emergency preparedness. The potential devastation and toll on personal life are obviously foremost, but in the organizational context, deploying a plan for ensuring the life of a business is a valuable consideration. Emergency preparedness is essential and a task businesses should dedicate time, money and resources to.

If anything, preparation can be perceived as a good insurance policy. You hope you never need it but are glad it was there in the event of an emergency.

Additional references:  

Jon William Toigo, Disaster Recovery Planning Preparing for the Unthinkable, 3rd Edition 
Centers for Disease Control and Prevention

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