What would you do if your business suffered a ransomware attack tomorrow? Do you have a contingency plan for business continuity in case of a tornado, hurricane, or earthquake? The unexpected can happen anytime, and small businesses can get hit particularly hard.

Small businesses are the backbone of many economies. They are critical for job creation, innovation, and community development. But running a small business comes with significant risks. This includes financial uncertainty, market volatility, and natural disasters. One of the most troubling statistics is that 60% of small businesses fail within 6 months of falling victim to a cyber-attack.

We here at Firewell Technology Solutions believe that small business owners must prepare for the unexpected. This is to ensure their longevity and success. In this article, we will discuss some tips to help small businesses get ready for anything.

Tip 1: Create a Contingency Plan

One of the most critical steps in preparing for the unexpected is to create a contingency plan. A contingency plan is a set of procedures that help a business respond to unforeseen events. Such as natural disasters, supply chain disruptions, or unexpected financial setbacks.

The plan should outline the steps the business will take in the event of an emergency. Including who will be responsible for what tasks. As well as how to communicate with employees, customers, and suppliers.

Tip 2: Maintain Adequate Insurance Coverage

Small businesses should always maintain adequate insurance coverage. This protects them from unexpected events. Insurance policies should include things like:

• Liability coverage
• Property damage coverage
• Business interruption coverage
• Data breach costs

Business interruption coverage is particularly important. It can help cover lost income and expenses during a disruption. Such as a natural disaster or supply chain disruption.

One of the newer types of policies is cybersecurity liability insurance. In today’s threat landscape, it has become an important consideration. Cybersecurity insurance covers things like costs to remediate a breach and legal expenses.

Tip 3: Diversify Your Revenue Streams

Small businesses that rely on a single product or service are at greater risk. Unexpected events can cause them significant harm. Something like a raw material shortage could cripple an organization without alternatives.

Diversifying your revenue streams can help reduce this risk. It ensures that your business has several sources of income. For example, a restaurant can offer catering services. A clothing store can sell merchandise online as well as its physical location.

Tip 4: Build Strong Relationships with Suppliers

Small businesses should build strong relationships with their suppliers. This ensures that they have a reliable supply chain. This is particularly important for businesses relying on one supplier for their products.

In the event of a disruption, having strong relationships matters. It mitigates the risk of a supplier bankruptcy or supply chain issue. Having supplier options can help reduce the impact on your business.

Tip 5: Keep Cash Reserves

Small businesses should keep cash reserves to help them weather unexpected events. Cash reserves can help cover unexpected expenses. Such as repairs, legal fees, or loss of income. As a general rule of thumb, businesses should keep at least six months’ worth of expenses in cash reserves.

Tip 6: Build Strong Outsourcing Relationships

If business owners try to do everything in house, they’re at higher risk. For example, if a key IT team member quits. In this case, the company could face major security issues.

Build strong outsourcing relationships with an IT provider and other critical support services. If something happens to a company’s staff or systems, they have a safety net.

Tip 7: Check Your Financials Regularly

Small business owners should check their finances regularly. This is to ensure that they are on track to meet their goals and to identify any potential issues early on.

This includes:

• Tracking income and expenses
• Creating and reviewing financial statements
• Regularly meeting with a financial advisor

Tip 8: Invest in Technology

Investing in technology can help small businesses prepare for unexpected events. For example, cloud-based software can help businesses store their data off-site. This ensures that it is safe in the event of a natural disaster or cyber-attack. Technology can also help businesses automate processes. Automation reduces the risk of errors and improves efficiency.

Tip 9: Train Employees for Emergencies

Small businesses should train their employees for emergencies. This helps ensure that everyone knows what to do in the event of an unexpected event.

This includes training for natural disasters, cyber-attacks, and other emergencies. Businesses should also have a plan for communicating with employees during an emergency. As well as ensure that everyone has access to the plan.

Tip 10: Stay Up to Date on Regulatory Requirements

Small businesses should stay up to date on regulatory requirements. This helps ensure that they are compliant with all laws and regulations. This includes tax laws, labor laws, and industry-specific regulations. Non-compliance can result in fines, legal fees, and damage to your business’s reputation.

In conclusion, small businesses face many risks. But by following these tips, they can prepare themselves for the unexpected.

Improve Business Continuity & Disaster Preparedness

Are you a Fresno or Visalia area business needing help with cybersecurity? Firewell Technology Solutions can help Fresno and Visalia businesses get started on a path to resilience and protect your business interests. Give us a call today to schedule a chat.

 

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Featured Image Credit

This Article, adapted, has been Republished with Permission from The Technology Press.

Whether you sell shoes or run an accounting firm, you need some type of technology to operate. Today’s companies aren’t just in the business of selling their own goods and services anymore. They also must master various types of digital tools. This is why we here at Firewell Technology Solutions believe that every company either is or must become a technology company.

The digital tools companies must master include software, payment systems, computers, Wi-Fi networks, mobile devices, and more. Companies also need to protect their devices and network.. If that technology isn’t working, it can impact a business significantly.

98% of surveyed organizations say that just one hour of IT downtime costs more than $100,000. The reliance on technology means that every company is now a technology company.

This is the case no matter what products you sell or services you provide. Let’s discuss exactly why this is the case in today’s world.

What Makes Technology a Backbone of Any Business?

 

1. Technology Is a Critical Part of Business

Even farmers use tech to check commodity prices, sell livestock, and keep their books. Most companies couldn’t operate without their software. Or without databases filled with important information.

IT downtime is so devastating for this very reason. Remember the breaches impacting global meat producer JBS and Colonial pipeline? Those companies had to halt operations because of ransomware attacks.

They both paid the ransom to their attackers so they could begin operating again. Without the technology that’s become a normal part of our day, a lot of companies would close.

2. Customers Expect an Excellent Digital Experience

Customer experience came in first in a survey of top business priorities for the next 5 years. Nearly 46% of respondents said it was at the top of their list.

If a customer has just one bad experience with your company, they will likely go elsewhere. In a digital world, those experiences are often:

• Navigating your website
• Checkout experience
• Appointment scheduling ease
• Shipping notifications
• Helpfulness of online chat
• Response time from customer support
• Ability to contact your company via social media

To keep up with consumer expectations in 2023 and beyond, means you need to use technology. From your website to your payment experience, people expect a smooth digital flow.

3. Employees Need Devices to Drive Productivity

How do employees work productivity without the use of a computer, tablet, or mobile device? These devices keep staff connected to each other and your customer data. Devices enable communication and are how much of the work in offices gets done. If they don’t run well, business productivity suffers.

4. AI & Automation Help Companies Stay Competitive

AI and automation help organizations move faster and can personalize a consumer shopping experience. Automation can help sales teams close 30% more deals and improve conversions by over 200%.

To stay competitive, companies must integrate technology tools with AI and automation capabilities. This means they need to know the best ways to use these tools. Plus, integrate them well with existing solutions.

5. Information Is Being Generated at a Rapid Pace

Companies generate information digitally at a dizzying pace. Can you imagine what it would be like if you had to go back to all the paper files? You’d need a separate building just for all the filing cabinets.

Files, documents, and customer records are largely digital now. Keeping track of all that information and making it searchable requires technology skills.

6. Vendors/Suppliers Are Leaving Legacy Systems Behind

Think of the vendors you use to run your business. Could you interact with any of them offline only? No email, no digital documents? In most cases, the answer is, “No.”

The companies that you rely on for your business are also “technology companies” in the same way. Most will be leaving behind legacy systems like fax machines and paper documents. Thus, you need to use digital means to interact with them.

7. It’s Difficult to Grow Without Tech Innovation

People are limited by what they can mentally and physically do in a day. Computers and technology have exponentially increased that. They do a lot of the processing and manual work.

The cloud is often touted as leveling the playing field for small businesses. It allows smaller companies to leverage technology to do more affordably.

It’s hard to continue growing your business without the smart use of digital tools. This includes reviewing your technology infrastructure and looking at innovations on the horizon.

8. Business Continuity Needs

Business continuity is about keeping your company running despite any crisis events. One natural disaster could severely impact a building and everything in it. But, if you are storing your data in the cloud and using cloud software, your business can still operate.

Companies that aren’t employing backup systems are at significant risk. Tech solutions create the ability to continue operating from anywhere, increasing business resiliency.

What Does Your Innovation Roadmap Look Like?

Using technology securely and to its fullest can be a full-time job. Give us a call today! Firewell Technology Solutions can help take that burden off your shoulders.

 

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Featured Image Credit

This Article, adapted, has been Republished with Permission from The Technology Press.

A well-thought-out business continuity plan is the only way to continue your operations when setbacks happen; however, you’ll need to avoid several mistakes when developing your strategy.

Your operations may seem efficient and failproof, but the reality is that obstacles can happen at any time. Whether you’ve lost a major client or can’t achieve good team dynamics, it’s essential to keep going. That’s where your business continuity plan (BCP) comes into play.

Your BCP outlines how your company will continue its operations during unplanned service disruptions. It’s more detailed than disaster recovery plans and features contingencies for processes, human resources, assets, and partners. It can also include checklists for equipment and supplies, data backups, and information on emergency responders.

The contents may vary, but a BCP can help you overcome various issues and re-establish productivity to meet critical needs. However, the only way to reap the benefits of your BCP is to avoid making mistakes in the development stage.

This is why Firewell Technology Solutions has compiled a list of the eight biggest mistakes you need to avoid when creating your business continuity plan.

The Eight Mistakes

Mistake #1 – Disregarding Your Employees

Organizations who want to get back on track after an unexpected incident should focus on the needs of their employees when devising a BCP. Otherwise, they may be running serious safety risks.

So, plan for every situation that can affect your employees during disruptions. The list includes emergency communication protocols, evacuation routes, and many other key details. In doing so, you’ll ensure your team has all they need to weather the storm.

Moreover, discuss the plan with your staff and elicit their input in critical safety matters. You can also tell them you’ll be there for support if a crisis takes place. The short-term investment in the peace of mind this brings pays huge dividends every day.

Mistake #2 – Not Considering Small Details

After creating a general BCP, many enterprises fail to think about specific details that ensure they can execute their plan. This is a huge mistake, as it can result in loss of data.

The minor points you should incorporate into your BCP include logistical considerations, such as technology and medical aid support.

For example, informing your medical providers about the plan is crucial because it enables them to make their arrangements on time. You should also tell your key personnel who to contact if they need medical assistance during accidents. Another great idea is to determine how your team can access data securely if they can’t make it to their office.

Taking the smallest details into account can protect your data and even save your staff’s lives. Therefore, don’t leave the development to chance – go through the BCP regularly to make sure it’s effective and up to date.

Mistake #3 – Failure to Show Your Staff How the Plan Works

While many leaders brood on downtime, they often fail to demonstrate to their team members how to execute the plan and minimize productivity decrease.

As previously indicated, your employees are integral to the efficacy of your BCP. And the only way to perform their roles correctly is to become well-versed in the plan.

To ensure this, explain how the staff should respond during crises. Tell them how to handle their clients if your systems go down. Don’t forget about the location and schedules that will be effective while the main office is off-limits.

The final part is to have your team practice these tasks so they can complete them more easily when disasters strike.

Mistake #4 – Prioritizing Operational Continuity Over Team Safety

When accidents occur, it’s understandable why business owners focus on assessing the effects on their business. Nevertheless, considering operational continuity only and neglecting your staff’s safety well-being can have dire consequences.

Your people are crucial to executing your BCP appropriately, so check on them first. Data plans that nobody can facilitate are useless, regardless of their effectiveness.

You have to make sure your staff is safe and reachable after a crisis. The crisis management task force should be able to contact them easily and see if they can help them.

This will help guarantee your team can bounce back after an accident and go back to work quickly.

Mistake #5 – Having Improper Tech Solutions

Waiting for natural disasters to strike before establishing toll-free hotlines for your employees is a huge mistake. Likewise, failure to set up data backups might render your systems useless in case of data breaches.

If you have no proper technology to mitigate accidents, you could be exposing your business to higher risks, revenue loss, and prolonged downtime. In fact, the opportunity cost of unforeseen downtime is one of the biggest sources of profit loss.

To avert this, consult technology specialists or your IT sector to verify your system has all features and components that can keep your networks intact. Such a system should allow you to streamline communications, minimize downtime, and secure your workloads.

Mistake #6 – Only One Person Manages the Plan

Developing a BCP all by yourself is possible, but it’s also more prone to error. A much better approach is to gather people across all your departments to account for all contingencies. Otherwise, you’ll restrict your team’s insight into all the processes and risks under your plan.

Forming a BCP management team that involves multiple functions and departments offers a company-wide perspective to your planning. This diversity can help resolve problems and streamline your strategy.

Mistake #7 – Using Broad Generalizations

Continuity plans with broad generalizations often lead to uncertainty and confusion. A BCP needs to be concise and, if possible, explain each detail in short steps. Such forms enable anyone to understand the directions and visualize their roles.

Mistake #8 – Skipping Risk Assessment

Risk assessments are a critical step that must take place before developing your BCP. As the name suggests, they can you help discover the potential risks in your area.

Depending on the size of your organization, location, and activities, your company faces different risks. For example, there’s no need to plan for disaster recovery after a hurricane if your region isn’t prone to them. It would only increase your costs and waste time.

Don’t Let Your Operations Grind to a Halt

A detailed BCP goes a long way in improving your response to disasters. Avoiding the above-mentioned mistakes will put you on the right track and help your staff cope with new conditions more easily.

If you need help in creating and implementing the technology side of your BCP, give us a call today or schedule a free consultation. Let’s have an obligation-free chat to determine how Firewell Technology Solutions can help you.

Article used with permission from The Technology Press.