Starting Your Own Business: Prepare for the Worst

by Shenron on December 6, 2009

To finish off the “business” series on EverydayCareer, we are going to look away from the successes of a business to potential failures. We’re sure all of you are more than capable of running business, but there are some things that even you can’t control. Things like natural disasters can’t be prevented. That’s why, if you haven’t already set up a backup plan for your small business, you should. In fact, before you walk through the doors of your office tomorrow, you should get the ball rolling on a backup plan.

Own Business Starting Your Own Business: Prepare for the Worst

1. The first thing that could get in your way is a natural disaster of some kind. Depending on the area of the country you live in, you may be more prone to floods or tornadoes than say, someone in New York City. Whatever you feel to be the most threatening, and even the things you think pose no risk at all, like an earthquake in Kansas, prepare for them. The first thing to do is, with your insurance company, set up insurance for the most likely events to cause damage to your establishment. This usually includes flood and earthquake insurance. You’ll then want to back that entire up with some type of property insurance that protects things that may get damaged from the disaster. You can never be too careful when it comes to planning for disaster.

2. As the natural disaster rolls through, there’s a possibility that a lot of your important documents may get destroyed. To counter this you should first make copies of everything you consider valuable. That includes every tax return, receipt, fax, and insurance paperwork. Once you’ve got everything backed up you will either want to invest in a waterproof/fireproof safe that will keep things in tip top shape if things ever get destroyed, or talk to your local bank branch about getting a safe deposit box. Keeping paperwork backed up is a must if you’re planning for the worst.

3. To piggyback on number two, you will also want to backup all of your clients’ information. All of the phone numbers you’ve collected over the years should be archived along with your important documents.

Own Business 5 Starting Your Own Business: Prepare for the Worst

4. Lastly, if your business does get damaged during a disaster or through something out of your control, you will want to have a line of credit at your disposal. Be this a credit card or some type of loan on reserve, you will want to make sure that you have some way of getting back on your feet if everything disappears.

We hope that your business never has to go through a disaster. The sad part is though, many businesses never think it will happen to them, and when it does, they lose it all. Prepare now and take solace in the fact that if and when something ever happens, you’re ready to start business in a relatively short period of time instead of struggling to restart and losing all of your customers.

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