Disaster recovery and business continuity plans are issues that almost all small businesses fail to think about. More frequently, they decide they have not the resources to address such “unthinkables.”
If your business was down for 1-2 days or more, what costs would you incur?
Lost Revenues and Lost Productivity.
These are obvious. You will not make the money that you would have if you remained open. This is especially true if you provide a service. Services are inherently tied to time, and time cannot be re-created. Sure, you can work extra hours next week, but it will not be a service provided at the time it was expected. However, even if you provide a product that can be purchased next week instead of today, a customer did not get it when they most wanted or needed it. There are other far more serious consequences of business downtime than just unsold goods and services. There are the intangibles that cannot be so easily measured but have long-term consequences.
Helping The Competition
You give your competition a real edge. Present clients and potential ones may go to a competitor while you are down. Not all will return. Your competitors now have ammunition against you to use in sales pitches.
Employees will carry the burden of the extra hours and stress of helping get things back together. That can lead to a lot of frustration, which, if things do not get back to normal quickly, can damage long-term productivity. Most importantly, it can damage the respect they have for management (that means you). In general, they will recognize that you did not have the foresight and wisdom to anticipate the need to create disaster recovery and continuity plans. How can that not damage their trust and support for the company and you?
Negative Brand Reputation
Your customers will also wonder how you could not have cared enough to make plans to handle trouble. Think of the negative way a customer sees it. The event suggests a company that does not think ahead. A client is not “off base” to feel angry that you did not care enough to make plans to support him if a disaster hit. Also, if you cannot handle disasters well, what else are not you handling properly?
These are just a few of the reasons everyone needs to consider disaster recovery. To learn more, see our e-guide “Staying Alive: The Definitive Guide to Business Continuity and Disaster Recovery for Small Businesses”.