September is National Disaster Preparedness Month
It's a timely reminder that while disasters are often beyond our control, preparedness can significantly mitigate their impacts. Consider these sobering statistics: 40% of small businesses never reopen after a disaster, and the Small Business Administration estimates that up to 90% fail within two years of a major disruption. Whether it’s a natural disaster, cyberattack, or prolonged power outage, the financial impact can be swift and severe without a plan in place.
Smart Steps for Preparedness
Review Your Insurance Coverage
Do you have adequate protection for business interruption, property damage, or disability? Ensuring comprehensive coverage is essential in safeguarding your business against unexpected losses.
Check Your Emergency Fund
Having three to six months' worth of expenses set aside can be crucial in keeping your business operational during a crisis. This safety net provides the financial resilience needed to weather unforeseen storms.
Backup Key Documents
Are your financial records securely stored and accessible off-site or online? Backup solutions are vital for recovering critical data and ensuring continuity in daily operations.
Build a Continuity Plan
Does your team know the steps to maintain essential operations if something goes wrong? A detailed continuity plan ensures everyone understands their role and can act quickly to keep the business running smoothly.
Conclusion
A solid financial contingency plan can help your business stay resilient before, during, and after a crisis. If you would like to review your current plan or identify any gaps, feel free to reach out. Preparation is key to overcoming challenges and securing your business's future success.