It's nearly inevitable that your business will face at least one unexpected disruption at some point. This could come in the form of a cyberattack, a weather event, a supply chain issue, or even a general economic downturn. You never know what can happen, so the more prepared you are, the more resilient your business may be. Here are five tips for preparing your business for unexpected disruptions.
1. Protect Your Data
Short of physical safety, protecting your business data is one of the most important parts of preparing for unexpected disruptions, especially considering that many modern disruptions are directly related to technology. That includes cyberattacks, ransomware, software failures, and internet outages, all of which are beyond your control.
Unfortunately, small businesses are increasingly targeted by attackers because cybercriminals may assume they have fewer cybersecurity resources than larger organizations.
Don't become one of the statistics. Make protecting your data a priority. Use strong passwords and multi-factor authentication and encourage employees to do the same. Keep software and devices updated so they can receive the latest security patches. Install reputable antivirus and firewall software on devices and train employees to recognize phishing scams. Restrict access to sensitive information when appropriate.
Back up your business data, including financial records, customer information, inventory systems, and operational documents. These should all be backed up regularly. If you aren't already using cloud-based backup systems, consider reviewing available options. They are often affordable and relatively easy for small businesses to implement.
2. Diversify Suppliers and Revenue Streams
You can help prepare your business for disruptions by avoiding excessive reliance on any single supplier or revenue stream. Having multiple revenue sources and supplier relationships may help reduce operational challenges if one source becomes unavailable.
Suppliers can experience delays or shortages, and your operation can quickly become vulnerable as a result. Identify alternative vendors before problems occur and build relationships with backup suppliers so you have additional flexibility when needed.
Don't become too reliant on a single client or sales channel for revenue. Consider expanding revenue sources by adding new products or services, entering new customer markets, and developing relationships with complementary businesses.
3. Utilize Technology
While it is true that technology contributes to some of today's business risks, it also offers many advantages that can help businesses prepare for disruptions.
"In the digital age, technology plays a critical role in business continuity," says Brad Blackmon at Digital Office Equipment.* "Implementing the right tools can
significantly improve a company's ability to respond to unexpected disruptions"
In addition to cloud-based data backups, cloud computing can help your team work remotely during certain types of disruptions. During a power outage, for example, employees may be able to continue working from another location.
Collaboration tools like Zoom, Slack, and offerings from Google and Microsoft can help teams communicate and collaborate on projects regardless of location.
4. Write and Update an Emergency Action Plan
It can be helpful to create an emergency action plan as a living document that can be updated as needed and referenced by anyone who needs key information during a disruption.
"Your plan should define who is in charge, outline communication systems, and include procedures for evacuation, shelter-in-place, and medical emergencies," says the U.S. Chamber of Commerce Foundation.** "Update it annually with current contacts for employees, suppliers, and clients. Resources like Resilience in a Box can assist with developing a plan."
It should also include key employee responsibilities, backup suppliers and vendors, remote work procedures, data backup locations, and communication plans for employees and customers.
A documented plan can help reduce the need for rushed decision-making during challenging situations and provide employees with guidance on what steps to take during an unexpected disruption.
5. Maintain a Financial Safety Net
Maintaining a financial safety net can help a business navigate unexpected emergencies. Cash flow challenges are one of the primary reasons small businesses may struggle during a disruption. Even if the issue is temporary, it can become difficult to pay employees, cover rent, purchase inventory, and manage other operating expenses.
Set up an emergency fund. This can be as simple as opening a business savings account and contributing to it regularly. Consider reserving these funds for unexpected business disruptions or emergency situations.
Unexpected disruptions generally can't be avoided, but if you take time to prepare your business, you may improve its ability to adapt and continue operating when challenges arise.
* https://www.calldoe.com/post/how-companies-prepare-for-unexpected-disruptions
