Every year, hurricanes, tornadoes, floods, and other natural disasters affect the operations of small businesses across the country. A disruption in your business could mean lost revenues and reduced profits. Here are some things that you can do to protect your business.
Review Your Business Continuity Plan
This plan should outline the steps that you would need to take to protect your business before, during, and after a natural disaster. Your plan should include these four steps.
1. Conduct a business impact analysis to identify critical business functions, processes, and the resources that support them.
2. Identify and document what would have to be done to recover critical business functions and processes.
3. Select your team members who will be responsible for managing your plan.
The more detail that you include in your plan, the better. Be sure that your plan specifies your communication and recovery strategies. A natural disaster may force you to relocate to a different location. If so, your plan should list this location and address the means for equipping the space with equipment, power, Internet connectivity, and other resources that would be needed. Your plan should also include recovery strategies for your networks, servers, desktop and laptop computers and wireless devices in order to preserve your accounting data, sales and purchase records, customer and vendor lists, and payroll records.
Review Your Insurance Coverage
Protecting your business involves more than just creating a business continuity plan. You also need to have adequate business insurance. Now is the time to review your business insurance coverage with your insurance agent as well as your own life insurance coverage.
Although it’s certainly not pleasant to think about the consequences of a natural disaster, it’s wise to be informed and to plan ahead so that your business will be prepared.
If you have questions about creating a business continuity plan for your small business, please contact us. As a CPA, Accredited Small Business Consultant, and Advanced Certified QuickBooks ProAdvisor, we specialize in working with small business owners just like you and provide tax, accounting, financial analysis, management, business planning, and small business advisory services. We can help you to start, manage, and grow a successful small business. For more information, call (727) 391-7373 or else visit us on the web at http://www.LStortzCPA.com.