Friday, September 17, 1999

George Mindling Column 9-17-1999 -Where to Start


Where to Start

The journey of a thousand miles begins with the first step. The journey to a solid business recovery plan begins with the simple realization that one is needed.

Business interruptions come in many different variations, from minor irritations to the major problems that will actually shut the doors of a business. Experience has proven that planning for the "show stoppers" can actually prevent those show stoppers from closing your business.

In the corporate world, an analysis of the complete business is maintained to determine the actual portions of the business that must remain functional in order for the business to remain viable. Those services or functions are ranked based on their importance to the success of the business. Plans are then developed to reinstate any of those services that may be lost due to unforeseen circumstances. Large corporations usually have staffs that do nothing but prepare for interruptions that may in fact never come.

The business analysis is called risk assessment. It means knowing what actions or circumstances will be an interruption that can be sustained temporarily, to those that will stop cash flow and jeopardize the business.

In the normal business day, for example, if a manager calls in sick, the load can be picked up or deferred until the manager's return. As long as the absence is temporary, no action is required on the business owner's part. However, if a manager leaves a company permanently without warning, the situation is graver and now requires action. Something must be done to fill the position so the business can continue without interruption.

Is there an employee ready for the task, or must the company hire from outside the business. Does the owner assume the task personally? These are normal business decisions done on a daily basis in every company.

Contingency planning is the same basic process, only done beforehand. It is a detailed plan of everything relative to the business, from loss of vendor's supplies, to the loss of power and water or even telephone service. The resulting plan can be implemented with surprisingly good results.

Planning doesn't have to be a painful struggle to undertake. The resources to assist are available to the small business owner from SCORE, to the local Chamber of Commerce.

The Red Cross has planning documents available to assist in disaster preparation. Disaster Recovery Journal maintains an informative, free web page at http://www.drj.com.

Contingency Planning and Management also has a great, free page, even though you must register, at http://www.ContingencyPlanning.com. Picking up a pad and a pencil is a great second step.
George Mindling © 1999

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