GREAT 23 IDEA: Create a Disaster Recovery Plan

Nobody likes to think about the possibility of disaster, but that doesn't mean you shouldn't have a comprehensive disaster recovery plan for your business. You may not be hit with a hurricane, tornado, or earthquake, but even a broken pipe or minor fire can temporarily wipe out your business.

Big companies have committees and consultants to deal with recovery planning. Smaller businesses are finally recognizing the need for similar plans, according to Judy Bell, founder of Disaster Survival Planning Network in Southern California. She's written several books, including Disaster Survival Planning: A Practical Guide for Business, available on her web site for $19.95 plus tax and shipping. Her company offers a seminar to help small business owners prepare for disaster at a cost of $6,000. The fee includes a software template to create your own plan.

“We see chief financial officers and company auditors wanting to do disaster plans,” said Bell. “People who lease space are also asking their building managers how they can prepare.” Bell, who has worked with hundreds of companies, said insurance companies encourage clients to plan for disaster recovery.

Check out a variety of do-it-yourself products offered on her site: www.disaster-survival.com.

Meanwhile, here's a list of questions to ask before developing a disaster recovery plan:

• Where would you work if you couldn't work in the office?
• Can you arrange to share office space with another business?
• How would you contact clients and customers?
• Do you have a list of every employee's name, address, and home phone number?
• Do you have copies of your client or customer database at someone's home?
• Do you have copies of your invoices and accounts receivable somewhere other than at the office?
• Are all your important business records, including corporate records, backed up and stored offsite?

As part of your plan, you should keep important records at your home or in another safe place. This includes tax records, returns, patents, training materials, policy manuals, personnel records, and payroll checks. Back up all data on thumb drives and give copies to one or two trusted employees. Be sure to include current phone numbers for your insurance agent, plus policy numbers and copies of your insurance policies.

Shoot digital photos of your computers and other equipment and create an inventory including serial numbers. This information will help your insurance company settle your claims quickly.

Before a disaster strikes, develop a plan for exiting your building quickly and safely. Install fire extinguishers and schedule a fire drill. Assign people to act as safety monitors. Speak to your insurance agent about buying business interruption insurance to keep the doors open after a crisis.