Boss Lady

Empty spaces: when your business suffers a disaster

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It’s easy enough to forgo certain components when it comes to planning and preparation. As a business owner, you need to take precautions and have specific policies in place so you can handle things that may disrupt your business. But for smaller businesses, the lack of foresight can prove to be a business’s undoing. You may not notice that your business is failing until it is too late. You need to think about what goes into defining your business. Now, what would happen if there was a complete disaster? Would you be able to operate? If you don’t know, or there is no disaster recovery plan in place, what is the worst that could happen?

Data loss

One of the cornerstones of IT services these days is their ability to protect a business from security breaches, or even human error. Whether there is a disaster on a natural level or a company suffers significant data breaches from internal or external culprits, it is so important to realize how devastating losing your data can be to your company. Depending on the size and the operation, the cost of losing data is staggering. It could go into millions of dollars. Not only this but losing data triggers a set of dominoes that slowly unravel your business. Your security is exposed and the data has disappeared. Therefore, you face significant penalties from the government for failing to protect your business adequately. And in addition to this, you lose trust from the people that matter, your customers. Protecting your data is so important. Ensuring that you have significant protection in place through IT services, but also making sure that your employees understand the importance of two-factor authentication and the impacts of one simple data breach on a business.

Losing clients

Whatever happens to your business, your clients aren’t likely going to care how it happens. Whether you suffered a natural disaster or a data loss, all they will want to know is when you will be back up and running again. If you’ve lost relevant information or you’ve hit a bump in the road, you’ve got to manage your clients’ expectations. Because if you tell your clients you cannot help them anymore or you need to start from square one, this is a conversation that will have no winners. Clients and customers have needs, and they need you to fulfill them. Ultimately, if you aren’t equipped to deal with the customers’ needs, they will very simply go somewhere else. When a customer has got it into their mind that you are not prepared for recovery or they are worried you won’t be able to handle their business, it spirals out of control. The news will spread, and word-of-mouth is a help and a hindrance in the modern world. But from your perspective, bad news will spread like wildfire and people will soon begin to wash their hands of you.

Business interruption

The most visceral of anxieties in running a business is being acutely aware of how much money you are hemorrhaging with every passing minute. Any moment that work is not occurring means you’re losing money. The knock-on effect of losing a daily income will spread to the employees. Business interruption impacts your employees in massive ways. From your perspective, productivity depletes. Any employee downtime means money is going down the tubes. But also, employee downtime gradually causes a lack of faith in your abilities from the people that work for you. Doubt in your abilities, much like the customers’ lack of faith, will begin to spread. When the business suffers interruption, there are obligations for you to provide them with reassurance and financial support. However, it’s not always possible. If you are hiring freelancers, these are usually the people that go first. But when you start to drop employees, it’s unlikely they will come back. It’s not just about them looking for a different job, but it’s about them losing their faith in you completely. You can always hire new people, however, you’ve got to think about the amount of time it takes to upskill these individuals. You may have worked very hard to get the organization perfect. And when an employee loses their faith in your abilities to lead, but you don’t provide any form of reassurance, why would they come back? Would you?

The costs of recovering the business

The business might not recover at all. But if there is a plan in place the costs can be staggering. When you consider the costs of recovery associated with a data loss, the finances can be crippling. There are so many different factors associated with this one type of business interruption. The loss of data can result in paying to replace hardware, as well as factors like employee productivity, profits, and the time and cost of inputting the data. If you do not have a disaster recovery plan, the time it will take to get the business up and running is another aspect to consider. Turning a business around may very well take longer than you think. It could be a year before the business is able to get back to what it once was. Approximately 1 in 20 businesses never recovers from a data breach. And as data breaches are far more common these days, especially as businesses are weaker in their lines of defense, it is so important to have a disaster recovery plan for every eventuality.

You have to prepare your business. If your company suffers any form of disaster, it can be difficult to bounce back from. As so many companies have recently discovered in the light of the pandemic that it can completely obliterate your business overnight, it is so important to get into the mindset of preparing and covering every eventuality. It’s not an easy thing to do, and it requires a lot of time, effort, and energy, but it is so important because if you know what the worst-case scenario would be, you are arming yourself with the right tools.

About Business Woman Media

Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best. We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

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