Everyone has heard the phrase “failing to plan is planning to fail.” This is the truest when it comes to continuity and disaster planning for small businesses. Life has a tendency of getting in the way from time to time, and disruptions to the lives of the principals of closely held businesses can severely impact the underlying operation of the business entity. The opposite can be true as well when business interruptions bleed into the financial wellness, stress levels, and security of its founders and key executives.
Here are a few questions to ask yourself to see how prepared you feel if something were to happen to you or another principal or key person within your business organization:
1) Do you have a disaster continuity or recovery plan?
2) Does your business have a succession plan and formal organizational documents?
3) Does any one person(s) play such a vital role in the business that their absence creates dramatic issues? What backup strategies are in place for them?
3) Are important items such as operating agreements, vendors, and other similar agreements in one easily accessible place?
4) Are you in compliance with regulatory guidelines on privacy policy, PII (personally identifiable information), and are your security procedures up to date?
These are good questions to start with to determine how prepared you and your business are for disruptions or for growth in the future. If you need assistance in creating a plan, reach out to Wealth Advocacy, we can help.
Helpful Links:
https://www.sba.gov/document/support–disaster-preparedness-recovery-plan
https://www.uschamber.com/co/start/startup/business-plan-templates
https://www.score.org/resource/business-plan-template-startup-business
Updated: 2/28/2023