Does your organization have a plan to deal with a disaster? According to the Small Business Administration, most small businesses do not. Unfortunately, the lack of a plan greatly increases the chance that a company will struggle to resume normal operation for an extended period.

OCEVA Consulting, 501 (c) 3 assists small business owners and communities with planning before disaster strikes. Where many services assist with planning and recovery for large companies, OCEVA works to prepare the underserved small organizations before a disastrous event occurs.

The reality is that disasters occur all the time. Between 1955 and 2007, the top 20 disaster-prone states experienced 1 or more federally declared major disasters per year caused by hurricanes, tropical storms, tornadoes and other events. Statistics also show that more than one quarter of businesses will suffer a significant crisis of one kind or another in any given year.

The answer depends on many factors. However, having a plan is the most critical and quickest step onto the road of recovery. A 2007 Office Depot study of 2,500 small business owners found that 71% believed they did not need a plan, 63% also thought they would reopen within 72 hours of a natural disaster. Evidence from the last decade shows that the chances of surviving a crisis are greatly reduced without a plan. Nearly half of those without a plan never reopen following a disaster. One-third of those who do resume business are closed within two years.

As an owner, you have invested countless hours and money in your business. But do you knowhow to protect your investment from the unexpected? What elements of your business should be included in a disaster plan? Who should be included in the plan? How do you implement the plan?

Yes. Insurance covers losses after the fact. Planning mitigates the impact before an event occurs. Even the slightest disruption can upset a business for days. Without a continuity plan, time-consuming decisions will have to be made in the middle of a crisis. Planning ahead can mitigate risks and decrease down time.

No. Disaster planning has several benefits. Having a plan may actually lower your insurance rates. The insurance industry recognizes that your planning reduces your and their exposure to risk. It also helps you identify exactly the right coverage for your business rather than a one-size-fits-all insurance package.

Disaster planning may also expose excess expenditures. Because preparing requires an examination of critical operations, it often identifies areas where expenses may be reduced or processes improved.

Just as importantly, planning gives you peace of mind. Knowing that you are ready to manage and mitigate the effects of a crisis is a significant step that can pay dividends.

Disaster planning has several benefits. Having a plan may actually lower your insurance rates. The insurance industry recognizes that your planning reduces your and their exposure to risk. It also helps you identify exactly the right coverage for your business rather than a one-size-fits-all insurance package.

Disaster planning may also expose excess expenditures. Because preparing requires an examination of critical operations, it often identifies areas where expenses may be reduced or processes improved. Disaster planning is a competitive edge as well. If both you and your competition are struck by the same disaster, a plan can help you resume normal operations sooner and potentially capture customers left un-served.

Just as importantly, planning gives you peace of mind. Knowing that you are ready to manage and mitigate the effects of a crisis is a significant step that can pay dividends.