As small businesses are immensely exposed to the destructive threats of a natural disaster, fire or data breach, it is immensely significant for these business enterprises to develop a business continuity plan. It has often been presumed that business continuity planning is a complex and challenging endeavor which can only be effectively executed by large organizations who can afford to employ exclusive consulting firms, however it is important to note that it is easier and more affordable for small businesses to be aided with business continuity as well as disaster recovery planning and execution (Snedaker, 2013). For instance, a range of cloud based disaster recovery as a service organizations can be witnessed who can aid the constitution data of small businesses and further provide them with abrupt access to the company's documents as well as customer details from any device. Furthermore the administrative body of small ventures offers association to a range of resources which these business owners can implement in order to execute a successful business continuity plan as well as disaster recovery strategy .
However keeping in consideration the financial constraints, small business enterprises must take into account five vital components which support entrepreneurs to develop proper execution.
- Evaluation of potential risks and costs-Small business Enterprises must effectively formulate the potential threats which can pose impact to the business such as risks towards weather or loss of crucial data. Such factors would reduce the rate of risk towards the small businesses and can further protect them from potential threats (Goffee & Scase, 2015).
- Develop ultimate approaches to execute business-Small business Enterprises must determine the rate of accessibility of its employee base and further ensure that the plan includes a proper framework of accessing customer and business data which can easily be safeguarded off-site. Such a plant enhances the level of approaches towards the proper regulation of payroll (Snedaker, 2013).
- List of vital contacts-Small business Enterprises must create a list of vital contacts comprising primarily of important employees in order to communicate with them in times of disaster or accident (Parahina et al., 2014). However this would condense the rate of exploitation of the Enterprises services or products and can further lead to effective business communication.
- Recognition of core products and services-It is usually recognized as an essential way to identify the proper products and services that would facilitate resources for the company bye for the involving resources to deliver products as well as services to consumers on a regular basis.
- Assessment of plan- Property evaluation of employees and Management is regarded as a significant factor which further allows the small business Enterprises to assess any missing details in order to make transitions accordingly.
Furthermore it has been noted that the business USA provides vital information on a wide range of avenues for small business enterprises in order to be competitively advantages for government contracts which involves a list of State and Federal procurement agencies and provide them with adequate information related to the registered themselves as a contractor and for the bid on significant opportunities and the directives which the State and Federal contractors need to adhere (Snedaker, 2013). In addition to this the National Federal of Independent businesses (NFIB) employed the Gallup Organization in 2004 in order to vote for small business entrepreneurs related to the types of natural disasters which might pose impact on the functioning of the business in the past few decades (Cohen & Kietzmann, 2014).
It has been noted that small business enterprises can have the accessibility to their capital join the incidence of any major catastrophe. The US small business administration provides low interest disaster funding to small organizations in order to repair or replace damaged business assets such as equipment on inventory (Storey, 2016). Furthermore, the US Economic Development Administration (EDA) along with the US Department Housing And Urban Development (HUD) comprise of loans which can be utilized for developing local or post disaster revolving loan programs for small business organizations (Snedaker, 2013). Lastly local and state tax incentives associated to property or any form of investment can further be used as financing mechanism which concentrates on the reduction of cost and further elevates the flow of capital for business recovery and development.
Cohen, B., & Kietzmann, J. (2014). Ride on! Mobility business models for the sharing economy. Organization & Environment, 27(3), 279-296. DOI: 10.1177/1086026614546199
Goffee, R., & Scase, R. (2015). The Real World of the Small Business Owner (Routledge Revivals). Routledge. Retrieved from https://books.google.co.in/books?hl=en&lr=&id=fR7ICQAAQBAJ&oi=fnd&pg=PP1&dq=Goffee,+R.,+%26+Scase,+R.+(2015).+The+Real+World+of+the+Small+Business+Owner+(Routledge+Revivals).+Routledge.&ots=MHPaeF3F9_&sig=Vi6Qg_186pGKjkbZuNOyrp0Rkec#v=onepage&q=Goffee%2C%20R.%2C%20%26%20Scase%2C%20R.%20(2015).%20The%20Real%20World%20of%20the%20Small%20Business%20Owner%20(Routledge%20Revivals).%20Routledge.&f=false
Parahina, V. N., Boris, O. A., Bezrukova, T. L., & Shanin, I. I. (2014). State support for creation and development of socially-oriented innovative enterprises. Asian Social Science, 10(23), 215. doi:10.5539/ass.v10n23p215
Snedaker, S. (2013). Business continuity and disaster recovery planning for IT professionals. Newnes. Retrieved from https://books.google.co.in/books?hl=en&lr=&id=vT8TAAAAQBAJ&oi=fnd&pg=PP1&dq=Snedaker,+S.+(2013).+Business+continuity+and+disaster+recovery+planning+for+IT+professionals.+Newnes.&ots=d0uFl48a70&sig=G0TfYt4VSJXnempQnxqLxNnDYHw
Storey, D. J. (2016). Understanding the small business sector. Routledge. Retrieved from https://books.google.co.in/books?hl=en&lr=&id=B263DAAAQBAJ&oi=fnd&pg=PP1&dq=Storey,+D.+J.+(2016).+Understanding+the+small+business+sector.+Routledge.&ots=Qa9NYI-g7r&sig=WCOeAhppsepr65-btT47SeDBwl4#v=onepage&q=Store%2C%20D.%20J.%20(2016).%20Understanding%20the%20small%20business%20sector.%20Routledge.&f=false