The business world often uses the terms “business
recovery plan” and “disaster
recovery plan” interchangeably.
In either case, the purpose of this plan
is to save your business from closing
its doors forever when disaster strikes.
This disaster may be in the form of a
natural disaster, such as the one that
struck business of business owners when
Hurricane Katrina wreaked havoc in Louisiana,
or it may be a man-made disaster. Poor
business decisions, a down-turn in the
economy, or even having your business
taken advantage of by a few dishonest
companies or employees can also spell
disaster for your business. By having
a business recovery plan in place before
disaster strikes, you will know exactly
what you need to do to keep your business
from going belly up.
What to Include in Your Business Recovery
Plan
Your business recovery plan should contain
several items and you should update it
at least once every six months to ensure
it accurately reflects the current standing
of your business. Your business recovery
plan also must detail which personnel
and departments are responsible for responding
to specific situations. As a small business
owner, you may be responsible for overseeing
many, if not all, of the departments
typically found in a larger corporation.
If you have a partner, however, or have
hired other personnel to help you run
your business, your business recovery
plan should specify who is responsible
for taking care of the various aspects
of your business should disaster occur.
This way, there is no confusion when
disaster does strike and your business
can take quick and decisive action.
Your business recovery plan should also
specify the equipment you will need to
get your business back on track. This
may include software and hardware for
the technology department as well as
business equipment and spare parts.
What to Do if Disaster Strikes Before
You Have Created a Business Recovery
Plan
If your business is going broke and
you have never created a business recovery
plan, you might still have time to do
so. Before you go knocking on a lawyer’s
door asking him or her to help you file
bankruptcy, talk to a financial adviser
or a business expert. They can help you
find ways to cut costs and to take advantage
of laws to protect your business. A lawyer
probably won’t tell you about your
other choices unless you specifically
ask about them. And, even then, you might
not get straight answers. So, be sure
to talk to several different experts
and do your research to create a business
recovery plan that will help you save
your business and start turning a profit
once more.
What
to consider when deciding on
business restructuring and chapter
11.
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